The Complete Guide to No Ratio Loans and How They Simplify Real Estate Investing
Introduction: What is a No Ratio Loan and Why Should You Consider Investing with One?
No ratio loans are a type of investment loan that does not require the borrower to show any personal income or asset documents. The only requirement is that the borrower has a high credit score based on the profit potential of the real estate rental income and the value of the property.
Credit Challenged Investors Have Options!
No DSCR Ratio: A no DSCR ratio means that you can invest without having to show your debt-to-income ratio, which would be impossible for many people because they simply don't have enough income to cover their monthly expenses.
No W2s Required: You don't need to provide your pay stubs, tax returns, or other documentation showing your earnings in order to qualify for this type of loan. In other words, you can get a no ratio loan if you have bad credit, no credit, or any other type of questionable financial history.
What Advantages Does the Format of a No Ratio Loan Offer Over Other Types of Investment Lending?
FIXED RATE TERMS with NO PROPERTY INCOME RATIOS
3/1 ARM – NO Balloon
5/1 ARM – NO Balloon
10/1 ARM - NO Ballonn
30 year fixed - Fully amortizing
Interest Only option
EZ Qualifying Process – 3 week closing
No W2s Required
No tax returns Necessary
No 4506s Ever
620 credit minimum
Past bankruptcy OK – Greater than 2 years
Past foreclosure OK – Greater than 2 years
LTVs up to 70% of the value today
Loan Purposes
These No Ratio income mortgages can be used for:
Vacation rentals
Single family properties (1-4 unit)
New acquisitions
Cash out refinances
Multifamily properties
Apartment buildings
How to Get Your Balance Sheet Ready for Your First Low-Down-Payment Real Estate Investment With No-Ratio Loans:
Start simple, know your market. Meanwhile, clean your personal credit the best you are able, start an LLC, start hunting properties, and then get ready to grow that automated income real estate portfolio you always dreamed of.
How to Apply for Blanket Loans & No Ratio Loans?
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