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.
Looking for other options? Having difficulty qualifying for a FHA, VA, USDA, or conventional loan? Some examples of Non-QM loans are:
- 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 is available for borrowers that recently had a bankruptcy, foreclosure, deed-in-lieu of foreclosure or short sale. This loan program is meant for borrowers who cannot meet traditional mortgage waiting periods.
- 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.
- Fixed and ARMS available.
- Low down payment option.
This program is designed for an new and experienced real estate investor who are purchasing or refinancing investment properties.
- Borrower is qualified based upon the cash flow 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.
- 15% minimum down on property for purchase.
- Cash out up to 80% loan to value (LTV).
Qualifications for the DSCR Loan
- Based on cash-flows solely from the subject property.
- Being a first time home buyer is acceptable.
- No ratio option available.
- 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