Speak to a Loan Officer (800) 718-8906
Speak to a Loan Officer (800) 718-8906
Non-qualified mortgage lenders are solutions based for individuals who don’t meet traditional lending criteria due to fluctuating income or complex financial situations.
On the other hand, government sponsored lenders like
Fannie Mae, | Federal National Mortgage Association (FNMA), Freddie Mac | Federal Home Loan Mortgage Corporation (FHLMC), FHA |
Federal Housing Administration, and VA | United States Department of Veterans Affairs have strict underwriting criteria creating difficulty for some borrowers to secure financing.
Non-QM loans address this gap by offering alternative documentation programs, providing greater opportunities for self-employed Americans to achieve homeownership.
Non QM lenders level the playing field between self employed and W2 wage earners.
Primarily designed for self-employed borrowers (>25% company ownership) and commission earners, Wage earners can also benefit with higher debt ratio DTI guidelines, 40-year Interest Only terms, etc. With Non-QM lending, homeownership is more attainable for borrowers of all kinds.
Non-Prime loans are manually underwritten on an individual basis, and in depth if necessary. These non qualified programs are a subcategory of non QM product.
Examples include reduced credit scores, reduced seasoning on major “credit events” such as bankruptcy, foreclosure, short sale, and loan modification, Real estate investors that have up to 20 finance properties
Borrowers with less than two years of employment history, requiring only 12 months of verification instead of the traditional two years may still qualify. Some lenders even accept a verbal verification of employment (VVOE) for approval.
These alternative income documentation programs include asset based and asset depletion as a standalone income source or in conjunction with bank statements (cash flow), business or personal bank account(s), to illustrate a borrower’s ability to repay. Mortgage lenders will also accept “borrower prepared” and “unaudited” P&L statements.
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