Our client was under contract to purchase a new home in Miami, Florida. Due to the COVID-19 pandemic, she wanted to simplify her life and downsize to a smaller home. But, she was having a hard time getting approved for a loan.
She had been denied by another lender due to her debt-to-income ratio (DTI) being too high. Also, having had several different jobs in the past couple of years, she was unable to show steady work history.
She came to us looking for help. This was definitely a difficult situation, but we found a creative solution.
We placed her under a very niche loan product known as the “no-ratio program”:
- This program does not require proof of income.
- Instead, you just have to provide verification of your employment or self-employment.
- If you’re employed: The lender simply contacts your employer to perform a verification of employment.
- If you’re self-employed: You simply provide a letter from your CPA, accountant, or tax preparer stating your title, ownership percentage, and business inception date.
This was the perfect solution for our client. No income verification was needed, and her DTI ratio was not even calculated, hence why the program is called “no ratio.”
We were able to close her loan with a 30-year fixed interest rate and 65% loan-to-value.
Thanks to this unique loan program, she is now a proud homeowner in Miami.
Interested in seeing if the no ratio program is a good fit for your loan scenario? Contact us here.