You may now be able to purchase property in New Orleans or along the MS Gulf Coast without having the perfect tax returns or debt to income ratio using what’s called a Non-QM (or non-qualifying mortgage)!
Whether you are self-employed and prefer to use bank statements to qualify for a loan, are looking to purchase investment property and qualify solely based on the rental income, or many other potential options which don’t fit within the traditional confirming home loan market, we can help!
Contact one of our experienced mortgage lenders in metro New Orleans to find out more about our Non-QM loan programs!
What’s A Non-QM Loan?
A Non-Qualifying Mortgage loan is designed specifically for borrowers who do not meet traditional lending income requirements but still have reliable income and good credit. A Non-QM loan will look at nontraditional factors and decide if they qualify based on those.
Current Non-QM Programs Available:
Bank Statements
This option is for business owners and the borrower can borrow up to 90% LTV (loan-to-value). The program has mortgage insurance (MI) included. No tax returns required! Borrowers can get a minimum of $150,000 and loans up to $3 million.
Requirements:
- Must be self-employed
- Credit score must be 640 or above
- 12-24 months business bank statements (must own 50% of the business for 2 years)
- 12-24 months personal bank statements (must own 25% of the business for 2 years)
- 1099 option available
Investment Cash Flow (“No Income”)
This option is for 1-4 family investment properties. It requires no personal income or employment history to qualify. Qualifying only from property cash flow. Individuals can borrow a minimum of $125,000 and a maximum of $2 million. The property stands alone.
Requirements:
- Borrower must own primary residence or other investment property
- Credit score must be 680 or above
- Borrowermust close in personal name or in an LLC
Asset Qualifier
This program looks at an individual’s assets to determine whether they qualify for a loan on a primary residence. Borrowers can get loans up to $3 million, with an LTV of 75% with no regular employment.
Requirements:
- Credit score must be 700 or above
- Must have substantial assets in the form of stocks or bonds
- 5 years of seasoning after past foreclosures or bankruptcies
Platinum Jumbo
A jumbo loan mortgage is a type of loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). This loan has a maximum of $3 million, with 90% LTV (loan-to-value) along with mortgage insurance (MI).
Requirements:
- Credit score must be 680 or above
- 4 years of seasoning after past foreclosures or bankruptcies
- 40-50% DTI
Portfolio Select
This particular program is great for borrowers who have suffered a credit event in the recent past and recovered from it. It allows gift funds, and borrowers can borrow up to 85% LTV on loans up to $2 million.
Requirements:
- 1 year seasoning from foreclosure
- 2 years of seasoning from bankruptcy
- Credit score must be 640 or above
- Up to 50% DTI
Foreign Nationals
This program is exclusively for people who do not live or work in the US. No credit score, US or foreign, is required to apply for loans between $125,000 and $1.5 million. Loan to value up to 70% LTV on investment property.
Requirements:
- Borrower must live and work outside the US
- Minimum DSCR of 1.0
- Automated Clearing House (ACH) auto-payment is required from a Federal Deposit Insurance Corporation (FDIC) US institution
Which Loan is Right For You?
Non-QM programs are continually evolving based on the needs of the market. Contact American Mortgage Resource today to find the non-QM program that works best for YOUR financial situation!