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Non-Qualified Mortgage Loan Options

non qm mortgage (Blog Banner)

In the lending space, there are two distinct loan varieties. One of those is called a qualifying mortgage, which means that the loan conforms to government or conventional mortgage guidelines.  These loans are generally more stringent on the requirements of a borrower to qualify to repay the loan. The loan and the borrower must fit strict requirements set by the Consumer Financial Protection Bureau. The other type of loan is called a non-qualifying mortgage. These typically include portfolio loans or loan programs geared toward investors, self-employed borrowers, and non-US-citizens. The information used to qualify borrowers is different, and the requirements that lenders ask for are often different from qualifying mortgages as well. These requirements for non-qualifying mortgages are set by each individual lender who is approving or denying prospective borrowers. Velocity Lending is your local expert when it comes to non-qualifying mortgages, and we’re excited to help those who may not be able to qualify for traditional mortgages due to employment status, citizenship, or income.

There are abundant non-qm mortgage varieties. We can offer nearly ten varieties of loans that non-traditional borrowers can apply for.  These include programs for investors, non-citizens, self-employed borrowers, and more. They each will have different requirements for things like credit score, percent down, documentation and loan amounts. When you complete your application with us, we will collect relevant information to qualify you for loans and make notes of which programs will be the best fit for you. You will schedule a meeting with Josh or Dakota to go over loan options, monthly payments, and things you can do to improve or make changes to your financial picture. They will advise you on what the best choice is for your new home loan, explaining the pros and cons and the money involved. You will ultimately have the choice of what kind of loan program and what amounts you want to move forward with, as you are the borrower who is taking out the financing. Borrowers who do not qualify for “cookie-cutter” loan programs will often be offered non-qualified products to help them bridge that gap to homeownership. Read on to see if any of these loan types could help you in your unique financial situation.

  • Bank Statement Mortgage
    • Self-employed borrowers
      • 660 FICO
      • 10% down
      • Up to $3mil, down to $150,000
      • 12- or 24-months business or personal bank statements
      • 2yr seasoning for foreclosure, short sale, bankruptcy, deed-in-lieu
      • 30-year fixed rate
      • 2yr self-employment required
  • 1099 Income Loan
    • Self-employed borrowers
      • 660 FICO
      • 10% down
      • Up to $3mil, down to $150,000
      • No tax returns req
      • Most recent 1-2yr 1099 plus YTD earning statement
      • YTD earnings are verified from earning statement, paystubs, bank statements
      • 1099s must be from a single employer
  • Investor Cash Flow
    • Property investors
      • 680 FICO
      • 20% down
      • Up to $1.5mil, down to $75,000
      • Qual based on property cash flow, min 1.15 DSCR- .80 max 30% down
      • No personal income or employment information required
      • Properties can be in LLC’s name
      • No limit on total number of properties
  • Platinum Jumbo
    • “Just Missed”
      • 680 FICO
      • 10% down
      • Up to $3mil, down to $250,000
      • 4yr seasoning for foreclosure, short sale, bankruptcy, or deed-in-lieu
      • Owner-occ, 2nd homes, non-owner occupied
      • Purchase and cash-out or rate-term refinance
      • Full doc only
  • Portfolio Select
    • Full-doc product that offers borrowers all the flexibility, features, and benefits of non-QM programs
      • 660 FICO
      • 20% down
      • Up to $2mil, down to $125,000
      • 1yr seasoning for foreclosure, short sale, deed-in-lieu
      • 2yr seasoning for bankruptcy
      • Purchase, cash-out, rate-term refinance
      • Owner-occupied, 2nd homes, investment properties
  • Asset Qualifier
    • High net worth & significant assets
      • 700 FICO
      • 25% down
      • Up to $3mil, down to $250,000
      • No employment, no income, no DTI
      • Rates are 30yr fixed
      • 5yr seasoning foreclosure, short-sale, bankruptcy
      • Primary residence only
  • Foreign National
    • Foreign National clients can purchase an investment property in the US
      • No foreign or us credit need
      • 20% down
      • Up to $1.5mil, down to $75,000
      • DSCR program with 1:1 ratio on cash flow
      • Assets sourced and seasoned for 60 days
        • Must be in a US FDIC insured bank for a min of 30 days
      • 12 months reserves required
        • Must be in a US bank
  • Agency Mortgage
    • Conventional mortgage solutions for quick closing
      • 660 FICO
      • 5% down
        • With MI
      • Up to conforming limits
      • Owner-occ, 2nd homes, investment
      • Competitive pricing with quick turn times

Velocity Lending is your local expert on non-QM mortgages. We are here to help you achieve the goal of homeownership regardless of your financial situation. If you don’t see a loan program on here that you are able to fit into, we have other options that we can explore with you as well. Please don’t hesitate to reach out to us if you have any questions or want to talk more about non-qualified mortgages or anything else. We are here for you!

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Velocity Lending

Office NMLS 1405948
Josh Lyon NMLS 790025