No Ratio
No Ratio is an explicitly recognized LOS doc type under Mega Capital's MVP and CES programs — and AD Mortgage's DSCR platform — where income is not calculated and no DTI ratio is applied. Qualification relies on credit strength, assets, collateral, and/or property cash flow.
Guideline Requirements
Mega Capital — MVP Non-QM Program
"No Ratio" is listed among eligible LOS doc types including Full Document, Bank Statements, VOE, Asset Utilization, DSCR, and No Ratio.
Core MVP program parameters applicable to No Ratio loans:
| Parameter | Requirement |
|---|---|
| Underwriting Method | Manual Underwriting Only |
| Minimum FICO | 660 (700 for Interest Only) |
| Loan Amount | $150,000 min / $3,000,000 max |
| DTI | Not computed — income not calculated under No Ratio |
| VVOE | Required within 10 calendar days of closing/note date |
| Reserves | Up to $1M loan: 6 months PITIA; up to $2M: 9 months; over $2M: 12 months |
- Eligible transactions: Purchase, Rate/Term, Cash-Out
- Eligible occupancy: Primary, Second Home, Investment
- Eligible products: 30-yr Fixed, 5/6 ARM, 7/6 ARM, 40-yr Fixed I/O, ARM I/O variants
Note: While the standard MVP guidelines state "Maximum Total Debt-to-Income (DTI) ratio allowed: 50%" the No Ratio doc type by design operates without income calculation — the DTI restriction is effectively waived. Selection of "No Ratio" in the LOS bypasses income documentation and ratio computation entirely.
Mega Capital — QM/Non-QM CES (Closed End Second) Program
The LOS Doc Code Mapping table for the CES program lists "No Ratio" as one of the eligible doc types in the Other Bank Statements/VOE/Asset Utilization/DSCR category mapping.
CES program parameters applicable to all doc types, including No Ratio:
| Parameter | Requirement |
|---|---|
| Products | Fully Amortizing Fixed: 10, 15, 20, 30-year |
| Age of Credit Docs | 120 days from Note Date |
| Age of Income Docs | 90 days from Note Date |
| Age of Asset Docs | 90 days from Note Date |
| Prepayment Penalty | None |
| Property Listing Seasoning | Properties listed within 6 months of application — ineligible |
| Ownership Seasoning | Properties owned less than 6 months — ineligible |
| High-Cost Loans | Not eligible |
| POA | Not eligible |
Note: For No Ratio loans where no income docs are submitted, credit and asset docs must still meet the 120-day and 90-day age requirements respectively.
Lender Overlay / Matrix — MCFI Simple Elite Bank Statement
The LOS Doc Code mapping lists "No Ratio" as a selectable income documentation category alongside Full Document, Bank Statements, 1099, Asset Utilization, and DSCR.
Alternative Path — AD Mortgage DSCR ("No DTI")
AD Mortgage explicitly uses the label "No DTI" for its DSCR investment property product — the functional equivalent of No Ratio for non-owner-occupied properties.
"DSCR (No DTI)" is listed as a distinct program tier under AD Investment Property / DSCR with: Mortgage History: 0x30x12 and 0x90x24 | Min FICO: 620 | CE Seasoning: 48 months | Tradelines: Standard | Ownership Requirement: Not Required.
Compliance / Conditions
- HPML eligibility: "HPML loans are permitted and subject to complying with all state regulatory requirements. No Section 32 or state High Cost. Loans must comply with all applicable federal and state regulations."
- HPML escrow and appraisal: "Escrows for taxes and insurance will be required [for HPML loans]. Two appraisals are required to be delivered for flip transactions as defined by the CFPB."
Program Comparison — Quick Reference
| Feature | MVP (Mega Capital) | CES (Mega Capital) | DSCR / No DTI (AD Mortgage) |
|---|---|---|---|
| Income Calculated | No | No | No |
| DTI Computed | No | No | No |
| Min FICO | 660 (700 I/O) | Per matrix | 620 |
| Max Loan | $3M | $5M (max CLTV 60%) | Per AD matrix |
| Occupancy | Primary, 2nd, NOO | Primary, 2nd, NOO | Investment only |
| Transactions | Purchase, R/T, Cash-Out | Purchase, R/T, Cash-Out | Per AD matrix |
| Reserves | 6–12 months PITIA | Per matrix | Per AD matrix |
| HPML Eligible | Yes, with escrow | Yes | N/A |
Important context: No Ratio is confirmed as an available and explicitly named doc type at Mega Capital across both MVP and CES programs. However, LTV/FICO matrices tied exclusively to the No Ratio doc type are not broken out separately in the retrieved matrix pages — the standard MVP/CES LTV/FICO matrices govern unless a program-specific overlay is stated.
