![]() If you would like more information, please give us a call at 88 or email us at “Felipe” Stevenson, CRMP Owner & Principal PS Financial Services 365768 Bad credit, 1 day out of bankruptcy, one day out of foreclosure, and more. Foreign National Mortgage Loans also fall under Non-QM, click here for more info on Foreign National Loans. The key for all of these is the Ability to Repay (ATR). We have a calculation that gives us an income amount based on the amount you have invested, and you don’t have to have a job or other steady source of income. Other Non-QM loans allow you to use assets or money in investments without touching those funds. So we sue the income of the property, instead of the income of the owner. This allows someone to buy an investment property by putting at least 20% down on a residential property without verifying the income or debts of the buyer. We provide Non-QM mortgage loans to borrowers in California, Arizona, Colorado, Ohio, Florida, Texas, Illinois, Washington and Louisiana.Non-Qualified Mortgages: The Bank Statement Mortgage Loans (click here for more info on this one) are the most popular, but the runner up is the Investor Cash Flow (ICF) or Debt Service Coverage Ratio (DSCR) or No Debt to Income (DTI) Ratio loan. Please review the loan options we offer to better understand which program fits your needs or contact one of our loan specialists so we can help determine which loan program will best fit your criteria. Jumbo Loans with 10% Down – borrowers can enjoy making a dream home purchase with as little as 10% down and minimum FICO of 660 to qualify. There is no principal reduction, however, it gives increased cash flow and spending options to the borrower. The interest only loan only calculates the interest only portion of the monthly payment. Interest Only Loans – borrowers can maximize their home purchase value by taking an interest only option. This is known as an asset depletion loan whereby the monthly income requirement to cover the debt service is calculated by adding up all the assets then dividing by 84 months to calculate the monthly revenue to cover debt service. The maximum LTV for these types of loans is 70% LTV.Īsset Based Loans– borrowers can qualify solely on their assets meaning checking account, savings, retirement 401k, stocks, and investment accounts. Borrowers can use enjoy a low debt to income service coverage to get approved and we can use rental income from properties that are being acquired into the calculation of the loan approval. No Income Investment Loans- borrowers who are investors in real estate traditionally rely on rental income and other assets to fulfil their financial commitments. This is a great loan option for self-employed, gig workers, realtors, business owners and consultants. No personal income documentation requirementīank Statement Loans – borrowers can qualify with as little as one month bank statement, typically we take 12 months bank statements and for the best interest rate we take 24 months statements.The checks and balances put in place are there to safeguard both borrower and lender. The borrower pays a nominally higher interest rate because they are providing alternative documentation versus a qualified mortgage that requires increased documentation and optimal interest rate. Going into a Non-QM loan does not increase the risk to the borrower or the lender in a sense that the lender has already calculated the increased risk in lending by offering a higher interest rate due to lower income documentation requirements. Benefits and Risks of Non-QM LoansĪlthough the loan requirements are less strict, the risk level of a loan going into default is always present. We understand that feeling that’s why we highly recommend Non-QM loans as credible option to get you loan approved whether it’s a new home purchase, investment property or refinance. Traditionally, borrowers have only been aware of qualified mortgage loans and to some it may seem impossible to get approved. Qualified Mortgages require W2, paystubs and tax returns and get the optimal interest rate but require more documentation to prove income for loan approval. A Non-QM loan usually has a higher interest rate but allows for an expanded criteria for approval such as bank statements or assets to prove the ability to repay debt. A Non-QM loan does not meet the federal guidelines for traditional qualified mortgages. Closing Costs, Preapproval and Best Rates, What Do They Mean? Here’s a Helpful GuideĪ Non-QM loans is the alternative to a qualified mortgage loan.Reverse Mortgage Rules and Requirements. ![]()
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