No-Ratio / Stated Income Loans
No-Ratio Loans (also known as Stated Income Loans) are rare Non-QM mortgage programs where lenders do not calculate or require verification of a borrower’s income or debt-to-income (DTI) ratio. Instead, approval is primarily based on credit score, assets, and down payment.
What Is a No-Ratio Loan?
Unlike traditional loans, borrowers do not provide income documentation or tax returns. Instead, the lender relies on the borrower’s creditworthiness, assets, and the size of the down payment to offset risk. These loans are sometimes used by high-net-worth individuals, foreign nationals, or investors.
How It Works
- Eligibility: Borrowers with strong credit and assets who do not want to disclose income.
- Loan Amounts: $100K – $2M+ (varies by lender).
- Down Payment: Usually 30%–40% minimum.
- Credit Score Requirement: Typically 700+.
- Documentation: Minimal — ID, credit report, asset verification, property details.
- Property Types: Primary residences, second homes, and investment properties (lender dependent).
- Reserves: Large reserves required — often 12+ months.
Benefits
- No income documentation required.
- Quick approval process.
- Works for borrowers with complex or private financial situations.
- Available for investment properties in some cases.
Fun Facts & Insider Details
- “Stated Income, Verified Assets” (SIVA): Many lenders require at least asset verification even if income isn’t verified.
- High Equity Cushion: Because of the risk, lenders require significant down payments to protect against defaults.
- Rare Products: Not many lenders offer them — but they exist in specialized Non-QM markets.
- Pre-Crisis History: These loans were widely offered before 2008 but are now heavily restricted.
Who Is the Best Candidate?
- High-net-worth individuals with strong credit and large assets.
- Borrowers who value privacy and prefer not to disclose income.
- Real estate investors with unconventional income structures.
- International buyers unable to provide U.S. income documentation.
FAQs
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Do I really not need to provide income?
Correct — income is not documented, but you must provide strong credit, assets, and a large down payment.
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Why are down payments so high?
To reduce lender risk since income isn’t verified.
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Are these loans common?
No. They are niche products available only through specialized Non-QM lenders.
Next Step
- Llámenos: 305-440-1507
- Correo electrónico: info@torresnc.com
⚖️ Disclaimer: No-Ratio and Stated Income loans are rare, high-risk mortgage products. Loan approval depends heavily on credit, assets, and down payment. These loans are not federally insured.
