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Flexible Income Documentation
Have you been denied a mortgage because you are a real estate investor, small business owner, immigrant, foreign national or another diverse borrower? Did you know there are still loan options available to you outside of traditional lending institutions?
Let us introduce you to Non Qualified Mortgage Loans often referred to as Non-QM loans. Non Qualified doesn't mean you can't get a loan—far from it. The classification simply means your loan cannot be sold to the government because it doesn't meet their strict guidelines.
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What is Non Qualified Mortgage Loan (Non-QM Loan)?
The name is deceiving. Non Qualified doesn't mean you can't get a loan. It simply means your loan doesn't conform with the government provisions for lending. Non conformance typically occurs when you have high debt to income, your income varies month to month, or income documentation is difficult.
In general, real estate investors, small business owners, solopreneurs, gig workers, and foreign nationals tend to have difficulty conforming to government guidelines and need Non-QM loans to buy real estate. A Non-QM loan is just like other mortgages with one exception. They are not sold to Fannie Mae or Freddie Mac.
If you would like more information about Non Qualified loan options, contact us today! Or start your application.
Non-QM Mortgage Advantages
- Proof of income with bank statements
- Relaxed work history documentation
- Low debt-service-coverage ratio (DSCR) on investment properties
- Counting rental income (including Airbnb & VRBO)
- Greater underwriting flexibility
Non-QM loans are the primary way to create investment opportunities for real estate investors and homeowners. Real estate moves quickly and opportunities do not stay on the market for long. A Non-QM mortgage may make it possible to make a quick real estate purchase.
What Kind of Non-QM loans Exist For Me?
Bank Report Loans
Lenders analyze your bank statements to determine your income and qualify you for a bank report Non-QM loan. Generally, borrowers need to provide 12 months of bank statements and have a 2-years of self-employment. This loan is usually the right solution for the self-employed, business owners, entrepreneurs, consultants, realtors, and real estate investors.
No Income Investment Loans
Private loans usually have high rates and require due diligence by the investor or investment firm. This adds overhead and puts many real estate investors at a disadvantage. On the other hand, Non-QM no income investment loans help build your real estate investment with fewer disadvantages.
Asset-Based Loans
If a big part of your income is hard to document, but you have verifiable assets on hand, asset-based loans can help you qualify for a home loan. With an asset based loan, The lender agrees to accept your income figure and verify your available assets. In some cases, the lender verifies your assets and does not take your income into consideration. A retiree who draws income from their retirement accounts may not have enough verifiable income, but their assets can be documented making them eligible for a Non-QM loan.
If you would like more information about your loan options, contact us today! Or start your loan application.
I Don't Have A Job But I Have Assets, Can I Get A Mortgage?
The short answer is yes...
You might be a high earner taking a hiatus from the grind of corporate life. You might have recently sold your business and have a chance to take a break. You might just be temporarily out of work for whatever reason.
You can qualify for a mortgage using cash on hand. The lender will look at your assets and determine a 5-year income based on depletion of funds. There are also different asset depletion options depending on your specific circumstances.
Can I Qualify For A Mortgage With Rental Income Instead Of W2 Income?
The short answer is yes...
As long as the rental income is higher than the mortgage, you can qualify for a Non-QM mortgage. All you need is a rent schedule. That means, no tax returns, no W2s, and no P&L, This is a simple version fo a Non-QM to help investors buy property. The rate are a little higher, more money down, but it is a great opportunity if you can't otherwise qualify for a loan.
If you would like more information about Non QM loan options, contact us today! Or start your mortgage application.
