A non- qualified mortgage is a home loan that doesn’t meet the standards set by the Consumer Financial Protection Bureau (CFPB) as the rules on Qualified Mortgage.
The Qualified Mortgage Rule:
The QM laws are defined by the Dodd-Frank Wall Street Reform and Consumer Protection Act:
- No Excessive Upfront Points and Fees
- No Toxic Loan Features
Non-Qualified Mortgage Loan Programs
Following is the list of Non-qualified mortgage loan programs.
- In this case, the borrower gets qualified based on verified liquid assets.
- All the assets must be documented sufficiently to cover the loan amount requested with an additional 60 months reserves to cover all revolving, installment, and debts.
- The assets can be anything from cash in the bank or stocks, to bonds, to mutual funds, to IRA’s, 401k’s, or any retirement accounts.
- 12 months of consecutive statements are required for asset verification.
- Tax returns are unneeded in the Underwriting.
- It is engineered for experienced Real Estate Investors who are purchasing or refinancing investment properties to be held for business purposes.
- Borrowers are qualified in keeping with the cash flow of the subject property, particularly the debt coverage ratio (1.0 for purchase transactions and 1.25 for refinance)
- The income is neither stated nor verified. The tax returns are not needed.
- It is made for high credit quality borrowers.
- The maximum DTI is of 50%
- The maximum Cash Out is 500,000.
- Foreign nationals, too, are qualified for funding under this program with additional overlays.
- They are made for high credit quality borrowers who have loan parameters that lie outside the Fannie Mae and Freddie Mac guidelines.
- The loan amount cannot surpass conforming or high balance loan limits
- 43% of the DTI ratio, and a maximum of 50% with compensating factors.
- They are engineered for self-employed borrowers with at least two years of self-employment history.
- The borrower’s qualifying income is calculated through 12 months most recent bank statements in place of tax returns.
The borrower’s qualifying income is calculated through 12 months most recent bank statements in place of tax returns.
Getting a non-mortgage loan can be tricky, but Whittaker Gregory Burton lays everything straight for you. With WGB, you get the loan quick and easy, and at the best deal.
A portfolio loan is a mortgage loan started by a bank and is held in the bank’s portfolio over the loan’s complete life. These loans are easy to approve, as they don’t have stringent requirements as compared to a VA or FHA loan. Let WGB loans make these portfolio programs even more comfortable for you. Connect to us now!
Some distinctive features of our Portfolio Loan program include:
- Loan amounts of up to $35 million
- We lend on investment properties, high land-to-home values, agency project condo financing, vacation homes and other unique properties are considered with no limits on acreage.
- Program that permits a title to be vested into an LLC, trust, partnership, or sub S corporation.
- Asset-Based Lending Programs that allow 90% LTV (loan-to-value ratio) with pledged assets.
- Permits purchase of a home with no money down, through cross collateralization of a free and clear property (restrictions apply)
Our Portfolio Loan Program offers many benefits, including:
- Loan Amounts from $300,000 to $35 million
- Underwriting flexibility
- Cross Collateralization
- Interest only options
- Non-Resident Alien Mortgages
- Financing options for self-employed borrowers
- Bridge Financing
- Pledged assets in lieu of cash
Commercial Real Estate, Specialty Bridge & Construction Lending
Specializing in bridge and construction loan options to owners, investors, and developers who need time to make improvements, find a new tenant, or sell a property. Our extensive experience and streamlined processing help ensure fast and smooth closings.
- Loan Amounts up to $75 Million
- Up to 3-year term with extension options
- No minimum occupancy requirements
- Maximum loan-to-value varies by eligible property type-up to 70%
- Maximum loan-to-cost varies by eligible property type up to 65%
- Market competitive floating rate-dependent upon risk
- Multi Family
- Mixed Use