Business owners and W2 Commission employ professionals often have difficulty obtaining a mortgage. Non-QM mortgage lending makes sense.
Non-Qualified Mortgages (Non-QM) are designed for self-employed people Agency lender Fannie Mae, Freddie, FHA, VA. underwriting guidelines prevent self-employed people from purchasing real estate. Non-Qualifying mortgages benifit by providing alterante documentation loan programs to the under-served self-employed American.
Underwriting guidelines for these types of loans are based on the borrowers ability to repay. Non-QM Mortgage lending is about alternative documentation in the areas of income documentation and employment verification documentation.
Non qualified mortgages 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.
Non qualified mortgages is about helping self employed people purchase or refinance a home by providing alternat
These mortgage programs, in large part, are for self-employed borrowers, defined as less than 25% ownership in a business as well as 100% commission/W2 wage earners.
However some of these loan programs also benefit borrowers that have a >43% debt to income ratio. Additionally, for any borrower that has <2 years (12 month employment verification) employment history (not the traditional 2-year requirement) can still qualify. Some lenders just require what’s called a verbal verification of employment (VVOE)
Also, 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 subcategory of non QM product.
Also 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 finance properties and their real estate investment portfolio are included.
These alternative income documentation programs including asset based and asset depletion as a standalone income source or in conjunction with bank statements (cash flow), business or personal bank account(s), to illustrate a borrower’s ability to repay. Mortgage lenders will also accept a “borrower prepared” and “unaudited” P&L statements. Flexibility is key to one’s success. All of these loan programs are manually underwritten, individually.