No Ratio Loans for Primary Residence

A No Ratio Loan for a primary residence is a type of mortgage that doesn’t require the borrower to provide traditional documentation of income or debt-to-income (DTI) ratio. This type of loan is typically used by borrowers who may have non-traditional income sources or who have fluctuating incomes that may not fit standard lending criteria. Instead of relying on a borrower’s income to determine loan eligibility, the lender focuses more on the property’s value, the borrower’s creditworthiness, and the overall financial profile. No Ratio Loans can offer more flexibility for those with unique financial situations, but they often come with higher interest rates or stricter terms due to the increased risk to the lender.