Different Ways Of Obtaining A Home Loan
In a fast-changing mortgage market, creative adaptation is essential to satisfy the demands of our borrowers. More and more, our borrowers are faced with different challenges that disqualify them from obtaining a traditional loan.
A Non-Qualified Mortgage (Non-QM) is a great solution for these borrowers who have unique income circumstances. These types of loans do not meet the standards of a qualified mortgage. They use a non-traditional method of income verification that enables the borrower to qualify for a home loan.
Below are some examples of Non-QM loan programs that are available in today's market.
Bank statement Programs
This program has flexible qualifying methods such as asset depletion and/or 12 to 24-month bank statement submissions to qualify. No W2s, tax returns, and pay stubs are required. Click here for more information on this program.
Debt Service Coverage Ratio (DSCR)
This loan qualifies the borrower for an investment loan using the rental property debt service coverage ratio (DSCR) cash flow. To qualify, the rent has to cover the payment of your mortgage including taxes and insurance, and no income documentation is required. Click here for more information on this program.
This program is the perfect solution for the borrower who does not have a social security. To qualify, the borrower must have a down payment of at least 10-20%, depending on the lender. In addition, an ITIN card and a copy of a second form of ID will be required. There may be other requirements based on the particular lender. To find more information on ITIN loans click here.
We touched on a few different ways of obtaining a home loan for borrowers who would normally not qualify for a traditional loan.
For more information on other ways of obtaining a home loan click here.