Non QM Loans
WHAT TYPE OF NON QM MORTGAGES DO WE OFFER.
Non-QM mortgages are home loans that do not meet the guidelines set by the Consumer Financial Protection Bureau for Qualified Mortgages. In general, these loans are considered non-conventional, meaning they do not conform to the government-sponsored enterprises guidelines such as Fannie Mae and Freddie Mac. Non-QM loans may be an option for borrowers who have unique or complex financial circumstances that make them ineligible for traditional conforming loans. However, because they are often considered higher risk, interest rates on non-QM loans may be higher than on traditional loans. Lenders may also have their own underwriting requirements and may scrutinize borrowers' creditworthiness more closely.
We offer a variety of Non QM Mortgage products such as DSCR, Bank Statement Loans, No Income Verification, Non warrantable condos, Reverse Mortgages / HECM, Down payment assistance / MSHDA.
DSCR LOAN
DSCR (Debt Service Coverage Ratio) mortgage is a type of commercial or investment property loan that calculates the borrower's ability to make interest and principal payments based on the cash flow the property is expected to generate. The DSCR is a financial ratio used to assess the borrower's ability to cover the mortgage payments based on the income generated by the property. A DSCR mortgage is ideal for borrowers who are looking to purchase an income-generating property but may not have a strong personal financial history.
BANK STATEMENT LOAN
A bank statement mortgage is a type of mortgage that permits borrowers to use bank statements or other alternative forms of income verification to show their ability to repay the loan, rather than relying on traditional documentation like tax returns or W-2 forms. The process involves analyzing a borrower's bank statements over a period of time to determine their income and expenses. This type of mortgage can be particularly useful for self-employed individuals, freelancers, or those with non-traditional sources of income.
NO INCOME VERIFICATION LOAN
A no income verification mortgage is a type of home loan that does not require borrowers to provide income documentation such as pay stubs or tax returns to prove their income. Instead, lenders may use other methods to verify the borrower's income, such as bank statements or proof of assets. These types of loans are typically offered to self-employed individuals or those with non-traditional sources of income. However, they may come with higher interest rates and stricter eligibility requirements than traditional mortgages.
NON WARRANTABLE CONDOS
A non-warrantable condo loan is a type of mortgage loan that is backed by the lender and cannot be sold to Fannie Mae or Freddie Mac, or insured by the Federal Housing Administration or Veteran's Administration. This is usually because the condo project does not meet certain requirements set by Fannie Mae, Freddie Mac, FHA or VA, such as having too many investor-owned units, or having a single unit owner who owns too many units in the complex. Non-warrantable condos are considered riskier for lenders, which means that borrowers may face stricter eligibility requirements and higher interest rates. However, non-warrantable condo loans can be an option for borrowers who cannot qualify for a traditional mortgage or who are looking to purchase a unique property that does not conform to Fannie Mae, Freddie Mac, FHA or VA requirements.
REVERSE MORTGAGE / HECM
A reverse mortgage is a type of loan available to homeowners who are 62 years of age or older that allows them to convert part of the equity in their home into cash, without selling the property or making monthly mortgage payments. The loan is repaid either when the borrower moves out of the home, sells the home, or passes away. Unlike traditional mortgages, credit score and monthly income are not determining factors for eligibility, as the loan is based on the value of the home and the borrower's age.