Investment Loan
No-Ratio
For real estate investors whose income is complex, varied or hard to measure. A no-ratio loan for investment properties only is underwritten without a traditional debt-to-income ratio, and leans on your assets, reserves and the property instead.
- PropertyInvestment only, not a home you live in
- Debt-to-income ratioNot calculated
- Focuses onAssets, reserves and the property
- Loan typeNon-QM, business purpose
How It Works
No ratio, but not no review.
A traditional loan divides your monthly debts by your income. A no-ratio loan skips that calculation. The lender still reviews your credit, verifies your assets and reserves and looks closely at the property, which is why the down payment and reserve requirements are usually higher.
- 01
We confirm the property is an investment
No-ratio loans are business-purpose loans for rental and investment property. A home you or your family will live in needs a different program.
- 02
The lender reviews assets, credit and the property
Expect a credit review, verified assets for the down payment and reserves, and an appraisal. Some programs also look at the property's rent.
- 03
We price it across our lenders
No-ratio guidelines and pricing vary a great deal. We compare them with DSCR and other investor options so you can see which fits.
Program Highlights
Why investors choose a no-ratio loan.
- Underwriting does not calculate a traditional debt-to-income ratio
- Focuses on assets, reserves and the property's value
- An option for investors with complex or fluctuating income
- For investment properties only, not a home you live in
- Can often close in an LLC, depending on the lender
- Prepayment penalties are common and vary by lender
Common Questions
What investors ask about no-ratio loans.
A no-ratio loan is an investment property mortgage that is underwritten without a debt-to-income ratio. The lender does not compare your income to your debts. Instead, it relies on your credit, assets, reserves and the property itself. It is a business-purpose loan, not for a home you live in.
No. A no-ratio loan still requires documentation. Lenders pull credit, verify your down payment and reserves, appraise the property and may review the rent. What it skips is the debt-to-income calculation, not the review.
Requirements vary by lender, but most look for an investment property, a larger down payment than a standard loan, several months of reserves and a credit review. Many also want some experience owning investment property.
A DSCR loan qualifies on whether the rent covers the payment. A no-ratio loan does not need the rent to cover the payment, so it can fit properties with lower rent or vacancies, usually in exchange for a larger down payment or stronger reserves.
Often, yes. Many investor lenders will close in an LLC, usually with a personal guarantee and the LLC's formation documents. We confirm each lender's vesting rules.
Often, yes. Many DSCR loans charge a penalty for paying off within the first one to five years, usually stepping down each year. The penalty can typically be shortened or removed in exchange for a higher rate, so it should match how long you plan to hold.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Related Programs
Run your investment scenario across our lender network.
Send us the property, the price and what you want to do. We will compare no-ratio, DSCR and other investor options for you.