BuyerFinancing June 17, 2022

Non-Traditional Financing: No Ratio Loan

Do you have cash, but maybe not a recurring paycheck?  In the second follow-up to, Non-Traditional, Very Useful, Financing Options!, I will explore the mortgage that might be a perfect fit for you.  Here are a few example situations where the No Ratio Loan could help you purchase a house:

  • Were you a stay-at-home partner that recently went through a separation? Did you receive a large settlement as part of it?
  • Are you self-employed, but your income is seasonal? Or you only pay yourself a small monthly salary?
  • Are you part of the “Great Resignation” and in the process of transitioning between jobs/careers, but have a lot in savings?
  • Did you receive a large inherit or cash gift from a relative?

The No Ratio Loan is targeted specifically at individuals who have cash but have limited employment history or do not show enough income to qualify for a traditional conventional loan.  The basic requirements to qualify are you; need 20% for your down payment plus a minimum of 3 months of reserves (credit based).

It is a great program for “Under-served” communities, since many borrowers debt-to-income ratio, the amount of debt a person has in relationship to income, poses a challenge for being approved for conventional mortgage financing.  The No Ratio Loan does not rely on the debt-to-income calculation, and only focuses on available cash and credit history.

Since it does only focus on cash and credit history, it also removes the need to have many of the typical required documents, like tax returns, paystubs and W-2s.  With having less required documentation, it also could mean less processing time and a quicker closing for borrowers in a rush to complete a transaction, like we have been experiencing in the market recently.


  • Easy approval for borrowers with cash and good credit
  • Credit scores down to 640
  • Income is not required to be verified
  • Employment history is not required
  • No asset seasoning required & 100% of funds may come from gifts
  • Terms like a conventional loan at 15 & 30-year fixed-rate mortgages or a 5/1 & 7/1 ARM


  • Higher Interest Rate
  • Months of Reserves: 3m @ 740 FICO, 6m @ 700 FICO, 12m @ 680 FICO & 18m @ 640 FICO

Give Mark Moyes a call, (801) 999-0886, if you would like more information about your options with this and other types of loans.

Anyway, thanks for your time.  If you’d like to connect or share your thoughts, I can be reached via email at

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Disclaimer:  I am not a Lender or Mortgage Broker! I cannot qualify you for a loan, I do not know what your cost or rate would be, nor do I know the full requirements for any of the loans.  If you need help with financing, please talk with your lender.