What Are Non-QM Mortgage Loans?
In this blog, we will cover what non-QM mortgage loans are. Many homebuyers and real estate investors have heard of non-QM mortgage loans. However, a large number of homebuyers and real estate investors assume non-QM mortgage loans are non-prime loans or hard money loans with high mortgage rates. This is not true.
Why Non-QM Mortgage Loans versus Qualified Mortgages?
Many high credit high net worth people opt for non-QM mortgage loans versus traditional conforming loan programs due to one of many reasons. Many homebuyers and real estate investors do not realize there is a whole different type of avenue to mortgage lending on primary homes, second homes, and investment properties called non-Qualified mortgages. Non-Qualified mortgage loans can be a dream come true for someone who either does not qualify for a qualified mortgage or needs a different type of mortgage loan option than the traditional government or conforming loans.
In the following paragraphs, we will cover and explain what non-QM mortgage loans are and who benefits from using them versus other loan programs. We will cover the most non-QM mortgage loans that many people may benefit from but do not realize is available in the marketplace.
What Makes a Home Loan Non-QM Mortgage Loans?
Many banks are limited to the types of mortgage programs they offer. Banks and traditional lenders only offer qualified mortgages. Non-QM mortgage loans are non-qualified mortgages that do not fit into the CFPBs qualified mortgage guidelines. Most lenders no longer finance non-Qualified mortgage loans such as condotels, non-warrantable condos, multi-unit properties, mixed-use properties, hobby farms.
Non-QM Loans are becoming more and more popular. Non-QM mortgage loans are special mortgage loan programs that do not meet the qualified mortgage guidelines with regard to credit, income, and capacity. Non-QM Mortgage loans are for both primary, second home, and investment properties.
Non-QM Mortgage Loan Down Payment Requirements
Down payment guidelines on non-QM mortgage loans depend on the individual portfolio lender. Each non-QM mortgage lender has its own down payment requirements and guidelines on its non-QM mortgage loan program. Since non-QM mortgage loans do not need to meet agency guidelines like qualified mortgages (QM-loans), exceptions can be made on a case-by-case scenario on non-QM mortgage loans.
Non-QM Mortgage Loan Options on Residential Properties
Non-QM Mortgage Brokers offers unique collateral residential property financing. Non-QM Mortgage Brokers offers non-QM mortgage loans for non-warrantable condominiums. Another niche alternative non-QM mortgage loan program popular among our borrowers is condotel financing. Non-QM Mortgage Brokers can offer any condo-hotel purchasers a condotel loan and close in as little as 21 days.
Condotel and Non-Warrantable Condominium Mortgage Loans
There are only a small limited amount of banks and lenders that will even entertain a condotel loan. All condotel mortgage loans are portfolio loan products and I can help you either with a purchase condotel mortgage loan or a refinance condotel mortgage. Cashout refinance condotel financing is very popular. Contact me at 262-716-8151 or text us for a faster response. Or email us at Non-Qm Mortgage Brokers at gcho@gustancho.com. You can check out our website at www. non-qmmortgagebrokers.com if you need a condotel mortgage loan.
Non-QM Mortgage Loans on Multi-Family Property Financing
For homebuyers who need to seek non-QM mortgage loan options on multi-family financing, Non-QM Mortgage Brokers offers multi-family property financing as well as mixed-use properties and hobby farms. Income-producing mix-use properties and income-producing hobby farms are also eligible for our special mortgage programs. Loan sizes can be as small as $100,000 or larger than $3.0 million.
There are many non-QM mortgage loan options on two-to-four-unit multi-family mortgage loan programs. Whether you are seeking a larger loan limit than qualified mortgages, a no-doc non-QM loan option, or DSCR mortgage loans, you can rest assured you will be able to find it at Non-QM Mortgage Brokers
Unique Residential Properties Where No Comps Are Required
Many potential home buyers are restricted from buying a dream home because the house they want to buy has no comparables. The majority of the lenders require a home appraisal that has the market value valuation approach and will not approve an appraisal that has no recent nearby comparables.
The good news is that we offer unique property financing and accept the cost-value appraisal approach. Whether you are buying a white elephant that is the biggest house in the neighborhood or a huge estate in the middle of nowhere, contact us at Non-QM Mortgage Brokers at 262-716-8151 or explore what special mortgage programs that are available to you. Text us for a faster response.
Expatriate Special Mortgage Programs
Non-QM Mortgage Brokers expatriate mortgage programs to individuals who have not yet established any credit in the United States or have obtained a social security number. The way these mortgage programs work is that we treat these individuals like they had a credit score of 740 FICO. The one major qualification is that they can come to the United States to work for a U.S. company.
Borrowers need a valid work visa and are financially able to put down a 20% down payment on their purchase and able to meet our principal, interest, taxes, and insurance one-year reserve requirements. Loan-to-value requirements on residential primary portfolio loans are 80% up to $1.5 million and for loans up to $3,000,000, loan-to-value requirements might be 70% to 75% depending on the borrower’s credit profile.
ITIN Non-QM Mortgage Loans
Homebuyers can now be eligible for ITIN non-QM mortgage loans without having the legal immigration paperwork from the Immigration and Naturalization Service.
You can qualify for a home loan with an ITIN mortgage loan without having a social security number. ITIN mortgage loans at Non-QM Mortgage Brokers allows you to qualify for an ITIN Mortgage Loan using your U.S. individual taxpayer identification number versus your social security number.
DACA Mortgage Loans
If you are a DACA in the United States, you are now eligible to qualify for a mortgage loan without having the traditional immigration and naturalization paperwork for U.S. legal resident.
Asset-Depletion Mortgage Programs
No doc loans or state income loans have been dead and buried for several years now but we can offer you something comparable for those who are not showing a lot of income on their tax returns. Asset depletion mortgage programs calculate a 5% return on their qualifying assets, year over year, and depleted out to a max-age of 85 years old. Afterward, any remaining asset amounts can be rolled back into the calculation percentage potentially increasing it further.
Furthermore, this can be added to fixed or wage income to qualify and doesn’t require pledged funds from the borrower. Also, please note, given this is an unconventional way to calculate income, the loan-to-value may be reduced depending on the overall profile of the borrower. One of our most popular non-QM loan programs at Non-QM Mortgage Brokers is our non-QM mortgages one day out of foreclosure and bankruptcy with a 30% down payment.
Non-QM And Bank Statement Loans For Self Employed Borrowers
Non-QM Mortgage Brokers now offers Non-QM Loans bank statement loans for self-employed borrowers. There are no waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale with Non-QM Loans. We also offer bank statement loans for self-employed borrowers with no income tax returns required. 12 months bank statement deposits are averaged and used as monthly income. Withdrawals do not matter. Real estate investors, real estate developers, and property flippers can benefit from our fix-and-flip investor loan programs.
For more information about the contents of this blog or other mortgage-related topics, please contact us at Non-QM Mortgage Brokers at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Non-QM Mortgage Brokers is available 7 days a week, evenings, weekends, and holidays.
