No-DTI Stated Mortgage Program

A No-DTI Stated Mortgage — also called a no income / no employment verification loan — is a hybrid Non-QM program that removes the debt-to-income ratio from the qualification process entirely. Instead of documenting income and employment, eligibility is based primarily on your credit profile, down payment or equity, and verified funds for the transaction.

Borrowers may qualify subject to underwriting approval, and program guidelines may change. This program is designed for buyers and homeowners who may not fit a conventional or other Non-QM box for the reasons below.

The No-DTI Stated Mortgage covers purchases and cash-out refinances on primary residences and second homes with loan amounts from $200,000 up to $2,000,000. There is no income verification, no employment verification, no tax returns, no W-2s, no 1099s, and no DTI calculated — plus no pre-payment penalty and no mortgage insurance.

30-year fixed and interest-only adjustable-rate options are available. Owner-occupied primary residences and second homes only. Maximum LTV is tiered by middle credit score.

Program figures are subject to change. Loan amounts, LTV tiers, and credit score requirements reflect current program guidelines, may change without notice, and are subject to underwriting approval.

The document list is short by design. Primary documentation required includes the last 2 months of bank statements showing source of funds for the down payment, closing costs, and reserves; the most recent mortgage statement if refinancing; and a valid driver's license.

Appraisal requirements for larger loans: Loan amounts of $1,500,000 or more require two appraisals. Properties with a condition rating of 5 or 6 are not acceptable. An underwriting review is required for all loan files that do not require a second appraisal. Transferred appraisals are acceptable. The second appraisal or desk appraisal must be ordered from a Champions Approved AMC.

Unlike many of our other programs, where a soft credit pull is used to issue a pre-approval letter, this program requires a full credit report with a hard inquiry pulled upfront to determine eligibility.

A minimum (middle) credit score of 660 is required. No mortgage late payments are allowed within the last 12 months. Late revolving or installment payments require Letters of Explanation (LOE). Forbearance: if a borrower has resolved missed payments through a loss mitigation solution, they may be eligible for a new mortgage loan once they have made at least three (3) timely payments.

Tradeline requirements: borrowers must have active tradelines meeting one of the options below. A tradeline is any combination of credit accounts such as credit cards, student loans, or car loans. Qualifying tradelines must show activity within the last 90 days.

Reserves are funds you must still have available after closing. For purchase transactions, the reserve amount is based on your credit score and LTV — ask your loan officer for the requirement that applies to your scenario. For cash-out fully amortized loans, the borrower must have the first 4 months of PITIA reserves from their own eligible funds (not including the cash-out proceeds); loan proceeds disbursed to the borrower may be used to meet the remaining reserve requirement. For cash-out interest-only loans, cash-out proceeds may not be used to meet the minimum reserve requirements. Gift funds may be used toward down payment and closing costs but may not be used to meet reserve requirements.

Eligible properties include owner-occupied primary residences, qualifying second homes (occupied for part of the year, one-unit dwelling a reasonable distance from the primary residence, under the borrower's exclusive control — not a rental or timeshare), manufactured and mobile homes, properties on up to 10 acres, Fannie Mae warrantable condos (up to the maximum LTV per the eligibility grid), non-warrantable condos, and certain owner-occupied mixed-use properties that are primarily residential in nature.

Ineligible properties: anything zoned commercial, investment properties, condotels, co-ops, working farms/ranches/orchards, and acreage over 10 acres.

Past credit events do not automatically disqualify you. Standard seasoning periods apply, as summarized in the table below.

The No-DTI Stated Mortgage is the right tool when your income is hard to document, your DTI is high, or your circumstances don't fit a traditional underwrite — but your credit, reserves, and down payment or equity are strong. It's the wrong tool if you can fully document income and qualify conventionally, or if the target property is an investment, condotel, co-op, or working farm.