Non-Qualified Mortgage Loans
Non-Qualified Mortgage Loans
For most qualified mortgage loans, you will see rates from large lenders such as Fannie Mae, Freddie Mac, and the like, and will often restrict who can receive these loans based on factors such as income, credit and equity. However, there is another option, and that is through the form of non-qualified mortgage loans. With non-owner occupied homes, such as vacation homes, set to see significant pricing hits, non-QMs are expected to become a more popular option for those looking to invest in real estate.
With a non-qualified mortgage loan, you typically won’t need to worry about income or employer information, making this the superior choice for those looking to get into a home right away but may be between jobs or working to improve their credit. Since there are no requirements for these types of loans to meet federal and CFPB criteria, more potential homebuyers can have the opportunity to settle on the home that they want.
Types of Non-QM Loans
The following are a few different types of non-qualified mortgage loans that Aaron Hinson and the Luna Lending team can provide for you:
Bank Statement Loans: 12-24 months worth of bank statement deposits as income in lieu of tax returns. The advantage here is that while you might be paying more for your mortgage, you’re paying less in taxes.
Debt Service Credit Ratio (DSCR): This involves an investment property with no verified income. All you need to do is show that the rental income is 80% or more than the new mortgage payment (or 75% for refinancing), and you’ll be set.
Non-Warrantable Condos: These may include rental condos and homes being used for Airbnb, as these are traditionally difficult to lend on. However, we can help you find a non-QM that allows you to finance these properties.
Why Choose a Non-QM Loan?
Borrowers who opt for a non-qualified mortgage loan may often choose this out of necessity, but that’s not to say that there aren’t significant benefits to this option. For example, your initial down payment could be as little as 5%. There is also a bit more flexibility for your mortgage’s underwriter, allowing you to have the right mortgage on your terms.
Is a non-QM loan right for you? Check out our latest rates and use our qualifier tool to see if you are eligible. You can also contact the Luna Lending team to find out any additional information or answer any questions you may still have about purchasing a new home, refinancing your mortgage, or any other home financing options available to you.
Get Your Non-Qualified Mortgage Loan Quote Now!
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
The Home Purchase Process
Looking to buy a home in California or Colorado, but don’t know where to start to get a mortgage? Here’s how our loan process works:
- Complete our quick and easy secure online application
- Receive options based on your unique situation
- Choose an offer that best suits you
We make purchasing homes a breeze. We streamline the process so you can focus on picking the right mortgage for your home with none of the headaches.