Non-QM Loans
In recent years, the new regulations like Ability-to-Repay and Qualified Mortgage rules exiled subprime lending of the past. Today, Non-QM loans are on the rise as investors and lenders become more comfortable with programs that don’t have as stringent credit requirements as conventional or government loans. Over the past few years, many wholesale lenders have increased their offerings that include Non-QM loans. These loans offer a number of advantages including those listed below:
- Ideal for self-employed borrowers
- Bank Statements can be used for income qualifying
- No Income or Employment verification possible on owner-occupied properties
- Investment Properties can qualify based on Debt Service Coverage Ratio (DSCR) of 1% (break-even or cash flowing rental income)
- Recent Derogatory Credit Events (BK, Foreclosure, Short Sale, etc.) are allowed
- Credit scores as low as 580 FICO are allowed
- Interest-Only payment options available up to 80% LTV/CLTV
- Available for Primary Residences, 2nd Homes, and Investment properties
- Purchases and Rate/Term refinances allowed up to 95% LTV
- Cash-Out refinances allowed up to 85% LTV
- No Mortgage Insurance requirement
- Loan amounts up to $10,000,000
Contact Dave Kevelighan regarding Non-QM loans today!
