Sometimes you need to think "outside the lines" of traditional loan options. There are many situations where a loan type like this will make the dream of Home Ownership a possibility. These loans are typically designed for borrowers who don't meet the strict criteria for traditional mortgages, such as those with non-traditional incomes sources or lower credit scores. Non-QM Loans offer flexibility in underwriting criteria, allowing lenders to consider factors beyond just credit score and debt-to-income ratios.
However, they often come with higher interest rates and may require larger down payments to offset the increased risk to the lender.
Some Loan Options:
DSCR Loans
DSCR loans are options for customers that are looking to build their Real Estate portfolio with Investment Properties. 1st time or seasoned Investors have this loan option to utilize the estimated cash flow generated by the investment.
Some programs also do not require Income and/or employment needed from the client. Opening the doors to expand their Real Estate portfolio.
This also allows a customer to have an unlimited number of properties financed. There is a limit to how many rental properties a borrower can buy with Conventional mortgages, but they can generally take out as many DSCR loans as they want.
Asset Utilization
This mortgage program is designed for those who may not have easily qualifiable sources of income, such as the self-employed, entrepreneurs, retirees, and those living off their investments. This program allows them to use their personal assets as a means to qualify for a home mortgage, providing flexibility in obtaining financing.
Assets accounts to help qualify for a mortgage; Savings/Checking accounts, Stocks, and Retirement Accounts are just a few sources of where these assets can come from for this calculation.
