Non-Qualified Mortgage (Non-QM Loans)/Portfolio Loans
- The Qualified Mortgage (QM) rule brought about the concept of Non-QM lending.
- Loans that do not meet the complex rules that are associated with QM are considered Non-QM loans or portfolio loans.
- Non-QM loans take a common sense approach to underwriting and a borrower’s creditworthiness to determine the willingness and ability to repay the loan.
- Each situation is unique and each loan is weighed on its own merits.
- Every lender will approve loans bases on reasonable belief that the borrower has the ability to repay.
- Non-QM investor program, ITIN purchase, bank statement programs, fresh start, and many other…
- A borrower can run their case scenario by a mortgage Loan Originator and see if there is a product that fits their needs.
Fresh start home financing available for borrowers that recently had a bankruptcy, foreclosure, deed-in-lieu of foreclosure or short sale.
- No waiting period and no seasoning required after a bankruptcy, foreclosure, deed-in-lieu of foreclosure or short sale with the fresh start loan program.
- Low minimum credit scores acceptable.
- Eligible properties include single family residence, condominium, co-op, 2-4 unit property or home in PUD.
- Loan amounts $100,000 to $1 million.
- Fixed and ARMS available.
- Low down payment option.
This program is designed for an experienced real estate investor who are purchasing or refinancing investment properties.
- Borrower is qualified based upon the cash flows of the subject property only, regardless of the number of properties owned.
- No Income or employment is stated or verified – debt-to-income (DTI) is not used.
- For qualifying purposes debt-coverage ratio is used.
- 20% minimum down on property for purchase and refinance.
- Cash out up to 75% loan to value (LTV).
- Based on cash-flows solely from the subject property
- Designed for an experienced investor
- Being a first time home buyer is acceptable
- Have to have history of owning/managing commercial or residential property for at least 6 months
- 5/1, 7/1 and 10/1 LIBOR ARMS, fully amortizing
- Interest only available for 5/1 ARM during fixed period
- 15 and 30 year fixed rates, fully amortizing
- No prepayment penalty
ITIN Purchase and Refinance
- Non-permanent resident aliens allowed with no social security number, no green card, and no work visa. Borrower must have an ITIN card or IRS ITIN letter.
- Temporary agency income acceptable
- Verify income with verification of employment (VOE) acceptable
- Bank Statement programs available
- Debt to income up to 55%
- 12 Month Income Available
- Alternative forms of credit documentation, such as utility and phone bills are acceptable
- Eligible properties include single family homes, condos, and PUDS.
There are no laws that exist or restrict borrowers to be offered mortgage loans for non-citizens.