Non-QM Mortgage Products
To meet the wants of diverse borrowers, we offer a broad range of Non-QM loan products. The following are the Non-QM Mortgage products we provide:
Bank Statement Loans for Self-Employed Borrowers
This loan is usually the right solution for self-employed debtors, business owners, entrepreneurs, consultants, and realtors. Your ability to repay is calculated from your personal or business's ACTUAL cash flow. We review as little as 12 months of cash flows but borrower's often choose to provide a 24 month review. Loan amounts are available up to $30 Million.
Jumbo Loans with 5% Down
While traditional jumbo loans usually need 20 percent down, we provide near-miss jumbo loans with as little as 5 down, up to a 55 percent debt-to-income ratio, and credit scores nearing 660. Jumbo loans that have 5 percent down are mostly the perfect solution for those buying for first-time who may still have substantial student loans and other kinds of “perfect credit debt”.
No Income Investment Loans (DSCR Loans)
Private loans usually have high rates and take some time to get accepted, which is not favorable for many real estate investors. On the other hand, both experienced and new real estate investors can gain from the expanded measures provided by no-income investment loans, which help one to build their real estate investment with fewer disadvantages.
Asset-based loans help one to leverage assets they already own, including saving and checking accounts, money market accounts, or investing accounts, to secure a loan. This kind of Non-QM mortgage is favorable for people with available substantial liquid assets. We have access to favorable borrowing terms and wholesale rates, even though asset-based loans usually are connected with high-interest rates.
Hard Money Loans
Hard Money Loans are from lenders who are willing to lend their own money to mortgage your needs. They make their own rules and requirements for their types of loans. Hard Money Lenders are generally looking for a larger amount of equity since their underwriting guidelines are drastically reduced. Hard Money loans tend to have much higher interest and are usually 1 - 2 year loans. With our book of private investors, we can place you with one of these loans.
Foreign National Loans
If you don’t have a U.S. FICO score, Individual Tax Identification Number, or valid Social Security number, you can still pass for this kind of Non-QM loan. To pass, you will be required to produce a VISA waiver or VISA as well as three active and open trade lines with a history of two years. Foreign Nationals are able to make home purchases up to $30 Million.
Interest-Only Home Loans
We have an option to provide a 40-year fixed loans. You will only pay the interest during the first ten years of the loan. This gives significant cashflow savings over the first 10 year period of the loan. Nevertheless, it is essential to remember that you will not be paying the principal balance during the interest only period of the loan.
Recent Credit Event Loans
Recent credit events can make it hard to get a loan since a lot of lenders view them as a warning sign. However, we provide loan programs for debtors with recent credit occurrences, including bankruptcy, short sale, and foreclosure. While we have given the choice for as small as a day out from the credit occurrence, loan terms usually become better the longer it has been, even within a year or two.
Commercial Rental Property Loans
We give a number of loans tailored to the wants of real estate investors who require to increase their portfolio to have multi-family 5- to 20-unit properties, 2- to 4-unit properties, ground-up-construction, townhomes, single-family homes, and condos. From fix-and-flip investors to purchase-and-hold investors, our loans are tailored to make the process smoother.
Continue reading about each of these mortgage products or review your situation with a loan expert to decide on which kind of loan will work correctly for your wants. We give Non-QM mortgage loans to debtors in California, Texas, Hawaii, Arizona, and Washington.
Non-QM Mortgage Advantages
No personal income calculations are required
No work history is required (in some cases)
Low debt-service-coverage ratio (DSCR) on investment properties
Counting rental income (including Airbnb & VRBO)
Greater underwriting flexibility
No reserves required (in some cases)
As little as 5% down required
Credit scores as low as 620 accepted (600 w/ compensating factors)
For a lot of capable real estate investors and homeowners, Non-QM loans are the primary way to create investment chances plausible. As you know, real estate chances do not always stay for long on the market. A Non-QM mortgage may make it possible to make a quick purchase.
Who Should Consider a Non-QM Mortgage?
Buying property is already a complicated and usually drawn-out process. If you are then not qualified for a traditional mortgage, the situation quickly turns stressful. Nevertheless, QM loans are not your only choice. If one has been rejected for a traditional QM loan, a Non-QM loan may be their next choice.
They may also require to take into consideration a Non-QM loan if they have the perfect reason to know they will not pass for a QM loan mainly dependent on their credit, other factors, or interests. While for those who still have not decided whether this may be the best financing solution, let us further categorize the most common kinds of Non-QM loan debtors.
Non-QM Mortgages are Typically Recommended For:
Small to midsize business owners.
“Non-Prime” or “Subprime” borrowers who barely miss the needs for a QM loan and do not want to postpone.
Retired people interested in buying a second home that will not be their primary residence.
Those who have had a recent credit happening (bankruptcy, short sale, or foreclosure).
Real estate investors.
Borrowers searching for interest-only payments or more flexible DSCR requirements.
When you find yourself under one of these groups, you should talk to one of our experienced loan officers who can assist you decide if a Non-QM mortgage is the right solution for you.
What Should One Search for in a Non-QM Loan?
As a debtor, you need to find the best suitable terms, not forgetting the lowest possible interest percent. It may look obvious to choose the loan option that gives you the lowest rate, but that isn’t always the best choice as time goes by. You need to ask about the involved fees with the loan and ensure that the mortgage product is the perfect fit for your situation.
Teaching yourself about your loan options is the first step to finding a Non-QM loan that meets your needs.
Non-QM Mortgage Risks
The main risk of a Non-QM mortgage is not able to repay the loan when your financial situation suddenly changes. This may be of concern if there is another economic downfall. However, evasion on any loan is usually a risk.
By maintaining moderate lending levels while keeping flexibility, Non-QM loans give a bridge for borrowers who would otherwise have no choice or be saddled with unreasonably high-interest rates that drastically increase the expense of the loan. While Non-QM mortgages don’t have these same regulations, it doesn’t mean that debtors are placing themselves in a risky position. There are drafts and balances in place to keep safe both the lender and the buyer.
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