What Is Alternative Lending & Non-Prime Mortgages

This BLOG On Alternative Lending & Non-Prime Mortgages Was Written By Gustan Cho NMLS 873293

The 2008 Real Estate & Lending Collapse of 2008 has completely eliminated the subprime mortgage markets where borrowers of subprime loans were not able to obtain non-qm loans to purchase homes. Borrowers who did not qualify for conforming traditional loans such as FHA Loans and Conventional Loans were left out of the marketplace to purchase homes due to not having access to Alternative Lending & Non-Prime Mortgages. These borrowers were great borrowers who could afford to make the payments on their mortgage loans and had the means and income to afford being homeowners but due to the non-existence of subprime mortgages, they were stuck being renters in a hot real estate market and saw home values appreciate before their eyes. These borrowers had the desire, ability, and means were prime candidates for alternative lending and subprime mortgage loans and perfect candidates but could not have accessibility to alternative lending and non-qm mortgage programs now offered by The Gustan Cho Team at Nationwide Mortgage & Realty LLC.

Alternative Lending & Non-QM Loans are mortgages for home buyers and real estate investors who may not qualify for traditional conforming financing due to one or the many of the following reasons:

  • Borrowers may not have met the mandatory minimum waiting periods after bankruptcy, foreclosure, short sale to qualify for conforming loans
  • Self employed borrowers who do not have documented income but have bank statements where they can qualify for bank statement loan program
  • Borrowers who do not qualify for traditional conforming financing due to low credit scores
  • Other reasons

Types Of Borrowers Who Can Benefit From Alternative Lending & Non-QM Loans

Alternative Lending is ideal for borrowers who have the desire and means to afford making payments on alternative lending but are not able to get accessibility to subprime loans until now due to the fact that they have a few strikes on their credit or income profile. Alternative Lending and Non-QM Loans gives home buyers an opportunity to purchase a home now during a hot housing market until they get their credit and income profile in order and refinance their home loan to a conforming lower interest mortgage at a later date.

Rising Home Market

Home Values are sky rocketing in many parts of Illinois, Virginia, Washington, Florida, Texas, and California as well as the rest of the country. The housing market has started to recover starting in 2010 and has been appreciating where it left non-conforming mortgage borrowers out of the housing market and just forced them to become renters. Now with the comeback of alternative financing, these non-conforming subprime borrowers can participate in the housing market and gives them a chance not to miss out in becoming a homeowner in a hot real estate market where by all indications does not see like there is a pullback around the corner. Folks who could not qualify for traditional FHA, VA, USDA, and Conventional Loans due to not being able to meet the mandatory waiting period after bankruptcy and/or foreclosure can now qualify with Alternative Financing at The Gustan Cho Team at Nationwide Mortgage & Realty LLC.

Benefits Of Alternative Lending

Alternative Lending Programs are non-prime loan programs geared for home buyers and investment property buyers can now qualify for mortgages. Alternative Lenders all agree that a borrower’s credit scores does not pay for mortgage loans but their income and job stability does. The Gustan Cho Team at Nationwide Mortgage & Realty LLC offers non-prime jumbo mortgages along with a variety of alternative financing programs never heard of after the 2008 real estate and mortgage meltdown. Prior to the launching of non-prime loans this year, non-prime borrowers did not have a choice of even thinking about purchasing a home and were stuck being renters. Nationwide Mortgage & Realty LLC can now help non-prime borrowers get qualified for a home loan and become homeowners.

Non-Prime Mortgages

Non-Qualified borrowers can now qualify for non-prime loans without waiting the many years required to qualify for prime loans after bankruptcy, deed in lieu of foreclosure, bankruptcy, and short sale. The Gustan Cho Team at Nationwide Mortgage & Realty LLC offers residential and investment non-qualified mortgages for borrowers who have stable employments and incomes. Here are some of the subprime and alternative financing offered by The Gustan Cho Team at Nationwide Mortgage & Realty LLC:

  • Bank Statement Loan Program: For folks with irregular and/or non-traditional types of income
  • Self Employed Borrowers
  • If more than one borrowers, we will use the primary borrower’s middle credit scores and not the lower of the two borrower’s middle credit scores like prime lenders use

Alternative Lending And Subprime Mortgage Programs

Here are the alternative lending and subprime mortgage programs offered by The Gustan Cho Team at Nationwide Mortgage & Realty LLC:

  • No waiting period out of foreclosure, short sale, deed in lieu of foreclosure, and bankruptcy
  • Loan Limits up to $1 million
  • Borrowers can have credit scores down to 500 FICO
  • Up to 90% Loan To Value
  • Debt To Income Ratio up to 50% DTI
  • owner-occupied, 2nd homes, and investment properties ARE eligible for alternative financing
  • Non-warrantable condos considered
  • Jumbo mortgages down to 500 FICO
  • Adjustable Rate Mortgages, ARM, or 30-year fixed
  • No pre-payment penalty for owner-occupant homes and 2nd homes
  • No credit tradeline requirements
  • SFRs, townhomes, condos, 2-4 units on residential and investment properties
  • Seller concessions allowed on owner occupant and second homes upto 6%. Investment properties are limited to 2% sellers concessions.

If you are a non-prime borrower and have interest in alternative financing, please contact Gustan Cho at 262-878-1965 or text Gustan on his cell at 262-716-8151 for faster response. You can also email Gustan Cho at gcho@gustancho.com.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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