NON QM Mortgages
BANK STATEMENT LOANS
Mortgages for Investment Properties
Mortgages for Self Employed Borrowers
- Non-QM loans are not required to meet the same requirements as qualified mortgages, which are insured or guaranteed by government agencies such as Fannie Mae and Freddie Mac.
- Non-QM loans can be a good option for borrowers who do not meet the requirements for a qualified mortgage, such as those with high debt-to-income ratios or irregular income.
- Non-QM loans typically have higher interest rates and fees than qualified mortgages.
- Non-QM loans are not as widely available as qualified mortgages.
Here are some additional details about the features available listed:
- 3, 12, or 24 months of bank statements: Lenders will typically require 3 months of bank statements for a non-QM loan, but some lenders may require more. The type of account (business or personal) and the deposits made will be reviewed carefully to make sure they are consistent with the borrower's income and expenses.
- Reserves: Lenders will typically require borrowers to have reserves equal to 12 or 24 months of mortgage payments. Reserves can be in the form of cash, investments, or other liquid assets.
- FICO mortgage middle score is used not your Credit Genie one
- Lenders will typically use the borrower's FICO mortgage middle score to determine the interest rate on a non-QM loan. The higher the score, the lower the interest rate will be.
- Other requirements: Non-QM loans may also have other requirements, such as a minimum down payment, a maximum loan-to-value ratio, and a maximum debt-to-income ratio.
If you are considering a non-QM loan, there are different rules guidelines and ins and outs to each different mortgage non qm lender. A number of NonQM lenders have gone out of business in 2023,
so it's vital to understand how strong the particular shop is to withstand this storm.
Business types are categorized. A business with many employees and large office
will have a higher expense ratio than a one person office from home. Sometimes
a CPA letter is required to explain the type or business or expenses.
Properties need to be in good condition.
1- 8 units
There are minimum loan amounts
These loans are securitized and sold to a different market investor than conventional loans.
Each wholesale shop has it's own rules.
You should also make sure that you understand all of the terms and conditions of the loan before you sign any paperwork. It is important to have an experienced Loan Officer explain every step
Here to answer your questions
Caroline Gerardo (949) 784 - 9699
NMLS 324982
