Simple Lending Mortgage LLC
Start application
Non-QM No Ratio Loan

No Ratio Mortgage

A Non-QM option for qualified borrowers where income and employment are not used to calculate a traditional debt-to-income ratio.

Learn how No DTI review works
What it is

What Is a No Ratio Mortgage?

A No Ratio Mortgage is a Non-QM loan where the lender does not calculate DTI using traditional income documentation. Instead, the borrower is reviewed through a broader risk lens.

The borrower still must qualify based on credit profile, equity or down payment, reserves, property type, payment history, occupancy, and lender review. It can also be described as a No DTI Loan or No Income Verification Mortgage, but it is not a shortcut around underwriting.

Borrower fit

Who This Loan May Be Right For

Borrowers with strong credit and assets but complex income
Self-employed borrowers who do not want to document income traditionally
Borrowers with significant reserves
Buyers with a large down payment or strong equity
Homeowners seeking rate-and-term or cash-out refinance without a traditional DTI calculation
Primary residence or second home borrowers
Review factors

How Lenders Review This Scenario

Because the file does not rely on a traditional income-based DTI calculation, the rest of the profile carries more weight.

  • The lender does not calculate a traditional debt-to-income ratio.
  • Income and employment may not be verified for this product.
  • Credit score, loan amount, LTV, reserves, housing history, property type, and occupancy become more important.
  • Lower LTV and stronger credit generally improve the scenario.
  • Reserves matter because they show ability to manage the mortgage payment after closing.
Program highlights

No Ratio Mortgage Highlights

Loan amounts may range from $100,000 to $3,000,000.
Purchase, rate-and-term refinance, and cash-out refinance may be available.
Primary residences and second homes may be eligible.
Fixed-rate and ARM options may be available.
No traditional DTI calculation.
No stated cash-out limit, subject to lender review.
Reserves are required and vary by loan amount and LTV.
Homeowner counseling may be required.
Qualification strength

Credit, Equity, and Reserves

A stronger file can help offset the lack of traditional income verification. Lenders commonly focus on payment reliability, lower leverage, and post-closing liquidity.

  • Higher credit scores may allow higher LTV options.
  • LTV can vary based on FICO score, loan amount, and transaction type.
  • Cash-out refinances may require lower LTV than purchases or rate-and-term refinances.
  • Reserve requirements commonly range from 2 to 9 months depending on borrower profile, LTV, first-time homebuyer status, and loan size.
  • Gift funds may be allowed for down payment or cash to close, but generally not for reserves.
Property review

Property Types That May Be Eligible

Property eligibility is subject to appraisal, location, condition, and lender review.

Single-family homesPUDsTownhomesWarrantable condosNon-warrantable condos subject to review2-4 unit propertiesModular homesRural propertiesMixed-use propertiesLog homes
Know before applying

Important Eligibility Notes

  • Recent mortgage history matters.
  • Significant credit events may require seasoning.
  • Impounds/escrows may be required.
  • Interest-only may not be available.
  • Prepayment penalty may apply depending on lender/program.
  • Subordinate financing may be limited.
  • Seller concessions may be capped.
FAQ

No Ratio Mortgage and No DTI Loan Questions

Is a No Ratio Mortgage the same as a No DTI loan?

They are closely related terms. A No Ratio Mortgage is often described as a No DTI Loan because the lender does not calculate a traditional debt-to-income ratio from standard income documentation.

Do I need to verify income or employment?

For this Non-QM No Ratio Loan structure, income and employment may not be verified. The file still must meet credit, equity, reserve, property, occupancy, and underwriting requirements.

Can I use this for a primary residence?

Yes, primary residence borrowers may be eligible when the full scenario meets lender guidelines.

Can I use this for an investment property?

This specific program is mainly positioned for primary residences and second homes. Investment property borrowers may need a DSCR option instead, where the rental property income is reviewed differently.

What credit score do I need?

Credit score requirements vary by lender, LTV, loan amount, transaction type, occupancy, and the rest of the file. Stronger credit generally improves the scenario.

Are reserves required?

Yes. Reserves are required and may commonly range from 2 to 9 months depending on borrower profile, LTV, first-time homebuyer status, and loan size.

Can I do cash-out with a No Ratio Mortgage?

Cash-out refinance may be available, but cash-out files are reviewed carefully and may require lower LTV, stronger credit, and stronger reserves.

Is this the same as a stated income loan?

No. This is a modern Non-QM product with specific credit, equity, reserve, property, compliance, and underwriting requirements. It is not an old-style stated income loan.

Scenario review

Want to know if a No Ratio Mortgage fits your scenario?

This is not a commitment to lend. Program availability, eligibility, rates, terms, loan amounts, LTV, reserves, and documentation requirements depend on the full borrower scenario, property type, occupancy, credit profile, lender guidelines, and underwriting review. Not all borrowers will qualify.