A Different Way to Qualify
Community Mortgage: A Different Way to Qualify
Traditional income paperwork does not always tell the whole story. A Community Mortgage may offer another way to finance a primary residence without stating employment or income and without using a traditional debt-to-income calculation.
Credit, verified assets and reserves, equity, the property and the complete loan file still matter.
Let’s compare the available options and see what fits your situation.
What is a no-ratio Community Mortgage?
A Community Mortgage is a specialized owner-occupied home loan for borrowers whose financial picture may not fit traditional income-documentation rules.
Income and employment are not stated, traditional income documentation is not used to qualify, and a debt-to-income ratio is not calculated. It is not a no-document loan, automatic approval or a way around underwriting.
What changes—and what does not
Not used for qualification
- Stated employment
- Stated income
- Traditional income documentation
- A traditional debt-to-income ratio
Still reviewed
- Credit and mortgage history
- Verified funds and reserves
- Down payment or existing equity
- The property and appraisal
- Required forms and disclosures
- The complete underwriting file
When might it be worth exploring?
This option may be worth a conversation if you are self-employed, own a business, receive variable income or have a financial picture that is not captured well by traditional pay stubs, W-2s or tax-return calculations.
It may also help borrowers with solid credit, documented assets or meaningful equity whose circumstances do not fit neatly into a conventional underwriting box.
Not every borrower or property will qualify, so the first step is comparing the program with the other mortgage options available to you.
Current program snapshot
These highlights are based on guidelines dated July 22, 2026 and are subject to change.
- Primary residences only
- Purchase, rate-and-term refinance and cash-out refinance options
- 30-year fixed-rate options
- Loan amounts currently ranging from $100,000 to $2.5 million
- Maximum financing up to 80% LTV for certain purchase or rate-and-term scenarios
- Maximum financing up to 75% LTV for certain cash-out scenarios
- Credit tiers beginning at 640
- Generally six or nine months of reserves, depending on the applicable tier
The program’s maximum LTV and minimum credit score are separate limits. A 640 score does not qualify for 80% financing under the current guidelines. Required equity, reserves and credit vary by transaction and property.
What the process looks like
- Start with a conversation about your goals and property.
- Review your credit, available funds, reserves and equity.
- Confirm the property and current program requirements.
- Compare the Community Mortgage with full-documentation and other available options.
- Complete the application, appraisal, required homeowner education and underwriting.
Community Mortgage FAQs
What does “no-ratio” mean?
It means the program does not calculate a traditional debt-to-income ratio. Income and employment are not stated or used for qualification, but the lender still reviews credit, assets, reserves, equity, the property and the complete loan file.
Is this a no-document mortgage?
No. Traditional income documentation is not used to qualify, but identification, credit, asset, property, appraisal and other required loan documents still apply.
Do I need pay stubs, W-2s or tax returns to qualify?
Traditional income documents are not used for qualification under this program. Borrowers must still provide the other documentation and authorization forms required for the loan.
How much down payment or equity is required?
Some purchase and rate-and-term scenarios permit financing up to 80% of the property value. The amount required depends on credit, reserves, transaction type and property. Lower credit tiers and certain property types require more equity.
Can I use this for an investment property?
No. The Community Mortgage is currently limited to an owner-occupied primary residence.
Can it be used for a Florida condominium?
Some condominiums may qualify, subject to project review and additional financing limits. Under the current guidelines, condominiums in Florida projects that are 20 years old or older are not eligible.
More Options, One Conversation.
The goal is not to force your situation into one loan program. It is to understand the full picture, compare the available paths and explain the tradeoffs clearly. Let’s see whether a Community Mortgage—or another mortgage solution—fits what you are trying to accomplish.
Let’s Talk Mortgages (opens in a new tab)- Call or text Holden: 917-573-1191
- Email: hkellerhals@nexalending.com
Related resources
Mortgage Solutions Explore additional financing options.Community Mortgage availability and eligibility are subject to current investor guidelines, credit and collateral approval, and additional terms and conditions. Programs, rates, terms and guidelines may change without notice. Not all borrowers or properties qualify. No- or low-income-documentation products may have higher interest rates, points or fees than programs requiring full income documentation. Full-documentation programs are also available. This is not a commitment to lend. Community Mortgage is not sponsored or endorsed by the U.S. Treasury Department or any other government agency.