Non-QM Loans

Non-QM

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 Programs

  • 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

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.

Investor Program

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).

Qualifications:

  • 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

Product Descriptions:

  • 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.

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