![]() These alternative income documentation programs including asset-based and asset depletion as a stand-alone income source or in conjunction with bank statements (cash-flow), business or personal to illustrate a borrower's Ability-to-Repay (ATR). Non-Prime Mortgage Lenders and LoansĪlso, reduced credit scores, reduced seasoning on major "credit events" such as bankruptcy, foreclosure, short sale, and loan modification, these Non-Qualified programs are also called Non-Prime, a sub-category Non-QM product.Īlso available is the interest-only payment feature (monthly payment option to pay only the interest due for that particular month) Real estate investors that have up to 20 financed properties in their real estate investment portfolio are included. Additionally, for any borrower that has 2 years (12-month employment verification) employment history (not the traditional 2-year requirement), some just require what's called a Verbal Verification of Employment (VOE). However, some of these loan programs also benefit borrowers that have a >43% Debt-to-Income (DTI) ratio. These mortgage programs, in large part, are for self-employed borrowers, defined as >25% ownership in a business as well as commission/W-2 "wage earners". Non-QM mortgage lending is about alternative documentation in the areas of income documentation and Employment Verification documentation. Underwriting guidelines for these types of loans are based on the borrower's "Ability to Repay" (ATR). Non-Qualified Mortgages (Non-QM) is about helping self-employed people purchase or refinance a home by providing alternative documentation loan programs to the underserved and often self-employed borrower. Self-Employed Borrowers and Non-QM Mortgages ![]() Non-Qualified mortgages benefit by providing alternative documentation loan programs to the underserved and often self-employed borrower. Agency lender (Fannie Mae, Freddie Mac, FHA, VA,) guidelines prevent self-employed people from purchasing real estate or refinancing their homes. Non-Qualified Mortgages (Non-QM) are designed for self-employed borrowers. Non-QM mortgage lending makes a big difference. Business owners and W2 commission professionals often have difficulty obtaining mortgage credit.
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