You may find mortgage advice online that indicates you need to have a low debt-to-income ratio (DTI) to qualify for a jumbo mortgage loan. How low? A DTI of less than 36% is one of the most often-quoted figures.
While many lenders use debt-to-income ratios to determine eligibility for mortgages, not all do. You can find no ratio jumbo mortgages that can help you to buy the home you want.
What is a No Ratio Jumbo Home Mortgage?
A no ratio jumbo home mortgage is a home loan issued by a lender that uses criteria other than debt-to-income (DTI) to qualify you for your loan. You may find jumbo home mortgages that ask you to make varying down payments, but don’t require you to have a DTI lower than 36%.
What other criteria could I need to meet for a No Ratio Jumbo Loan?
No ratio jumbo mortgage loan criteria can vary. Some lenders may ask for you to show a reserve fund equal to a specified number of mortgage payments: for example, three to nine months worth of mortgage in the bank. You may also qualify based on co-ownership of property or business income.
You can also be asked to make a down payment that varies depending on your credit score. Some 100% loan-to-value (LTV) loans may be available for no ratio jumbo home mortgages.
One thing to remember about no ratio jumbo home loans is that they can fit your individual needs. One of the best reasons to consult with an experienced mortgage loan professional is to gain access to a variety of mortgage products. You may access additional loan programs that can help you to buy your high-priced home or luxury condo. These can include bank statement loans, and loans for buyers with limited credit history.
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