No ratio loans means higher risk to the lender/investors. They offset this risk by charging a higher interest rate.

This is a great program for getting around ratio issues. Especially if you can't "state" income due to job type and not being able to "state" a high enough, beleivable income.

This is also great for investors that have good income but ratios are out of whack due to "negative rent" on other investment properties.

A no ratio loan typically carries a slightly higher interest rate due to the fact your income is not a factor in the loan qualification process.

You are responsible for providing an accurate figure when the loan officer ask's for your income amount. The loan officer should not coach you or fill in the amount for you. If the loan is audited and fraud is discovered you and or the loan officer can be held accountable uner the law.

Eventhough incomes are not disclosed by the homeowner or verified by the lender, the source of income, the homeowner's employment, is still verified.

No Ratio Loans are actually much easier to process for everyone involved in the transaction because there is less paperwork. You have no income documentation/verification along with no assett documentation/verification.