Donnette

No Ratio Loans are another type of No Doc Low Doc loans. Like other No doc loans, No Ratio loans do not require documentation to verify income. No Ratio also provides another benefit though. The No Ratio Loan does not take into account your debt to income ratios. These loans also carry higher interest rates like other low doc loans because of the risk the lender endures to provide loans with little documentation.

These loans are great for a variety of people. They benefit investors who own multiple properties so their debt ratio appears to be much higher. The No Ratio Loan also benefits borrowers that find it difficult to obtain or provide the required documents that are required in a regular mortgage. It also benefits borrowers who are self- employed or work off of commissions.

These loans are of great advantage to those who have a higher debt to income ratio that is required by conventional loans. Many housing construction projects and rehab projects use these loans because the debt to income ratios will not reflect an accurate picture of their financial situation.

The exemption of the debt to income ratio is the greatest benefit of the No Ratio loans and is the main attraction that draws borrowers to them. This exemption usually approves loans to borrowers who otherwise would not have been approved if the debt to income ratio were considered. It also allows many borrowers to borrow more money that otherwise would have been hindered by the debt to ratio income.

The important issue that the buyer must consider for themselves is how much loan they can really afford. The debt to income ratio is used in typical loans for a very good reason. The purpose of these ratios is to determine how much loan you can afford for you.

You must make sure that you can truly afford the monthly mortgage you are applying for before you get carried away with accepting the loan just because you were approved. No Ratio loans are for responsible borrowers.

Milos Pesic is a mortgage agent and owner of a highly popular and comprehensive Loans and Mortgages informational web site. For more articles and resources on different types of mortgages and loans, mortgage refinancing, mortgage lenders and brokers and much more, visit his site at:

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