In this blog, we will discuss and cover bank statement jumbo non-QM loans for self-employed borrowers. Gustan Cho Associates offers Bank Statement Jumbo NON-QM Loans For Self Employed Borrowers. Non-QM loans are non-conforming portfolio loans. Traditional Jumbo loans have very tough lending requirements. Traditional Jumbo loans require 720 FICO, 25% down payment, less than 40% DTI, and no bankruptcy and/or foreclosure for the past seven years.
Non-QM Jumbo Lending Requirements and Guidelines
Non-QM Jumbo loan lending guidelines are negotiable. In general, borrowers with credit scores down to 500 FICO can qualify for non-QM Jumbo loans. However, the lower the credit scores the higher the down payment. The larger the down payment and the higher the borrower’s credit scores, the lower the mortgage rates. There is no private mortgage insurance required on non-QM Jumbo mortgages. There is no maximum loan limit. Mortgage rates can be competitive on non-QM loans versus traditional Jumbo mortgages. Gustan Cho Associates has a national reputation for being a one-stop mortgage shop. This is because not only do we offer no lender overlays on government and conventional loans but we have every available non-QM and alternative financing loan program out in the market today.
Non-QM Jumbo Mortgages For Self-Employed Homebuyers With No Income Tax Returns Required
Self-employed borrowers can qualify for a Jumbo NON-QM Loans For Self-Employed Borrowers without income tax returns, high credit scores, and low debt to income ratios. You can qualify for Non-QM Jumbo loans with credit scores down to 500 FICO. There is no waiting period after bankruptcy and/or a housing event. Bank Statement NON-QM Loans For Self-Employed Borrowers do not require income tax returns. Lenders will require 12 months of bank statements only and average the monthly deposits. The average of the 12-month deposits will be used as the average monthly income. Withdrawals do not count. Only deposits. Either personal or business bank statements can be used. Borrowers need to be self-employed. In this blog, we will discuss Jumbo NON-QM Loans For Self-Employed Borrowers. Gustan Cho Associates offers Bank Statement Jumbo NON-QM Loans For Self-Employed Borrowers with no private mortgage insurance required.
Bank Statement Jumbo NON-QM Loans For Self-Employed Borrowers Eligibility Requirements
Bank Statement NON-QM Loans are for self-employed borrowers only. Right after the 2008 Real Estate and Credit Meltdown, self-employed home buyers had a difficult time trying to qualify for home loans. The whole mortgage industry went through a major overhaul and changes. Self-employed people have the luxury to write off many expenses. While unreimbursed business expenses are great for tax deductions for self-employed people, it is not good when it comes to qualifying for a mortgage. With our Bank Statement Jumbo NON-QM Loans For Self-Employed Borrowers, business people can now qualify for home loans with no income tax returns.
How Income Is Calculated On Bank Statement Mortgage Loans
With the 12-month bank statement mortgage loan program, income tax returns are not required.
- 12 months personal and/or business bank statement deposits are averaged
- The monthly average is the monthly qualifying income
- If personal bank statement deposits are used, then 100% of the deposits are averaged
- If the business bank statements are used, then 50% of the average deposits are used as the qualifying income
- 20% down payment is normally required
- However, 10% to 15% down payment loan programs are available for higher credit score borrowers
- There is no private mortgage insurance required on Bank Statement Jumbo NON-QM Loans For Self-Employed Borrowers
- The maximum loan limit is $3 million
- A loan limit higher than $3 million will be based on a case by case scenario basis
- The down payment required depends on the borrower’s credit scores
- Mortgage Rates are determined by the borrower’s credit scores and down payment
- Minimum credit score requirements are 500 FICO
- The higher the borrower’s credit scores, the lower the down payment requirement
- The maximum debt to income ratio is capped at 50%
Exceptions can be made on non-QM loans since they are non-conforming portfolio loans.
Qualifying For Jumbo Loans For Self-Employed Borrowers
Lenders consider Jumbo Loans a higher risk than traditional government and conventional loans. Higher risk means higher risks. Reason Jumbo Loans are considered riskier investments is in the event borrowers default on their loans, it takes longer to sell the property in the open market. You need a special buyer for higher-end homes. It may take months and/or years longer to liquidate a higher-end home. Lenders want borrowers to have skin in the game when it comes to jumbo mortgages. That is why the more down payment a borrower puts down, the lower the interest rate.
Credit Scores Versus Mortgage Rates
Higher credit score borrowers are considered less risk by lenders. That is why higher credit score borrowers will get lower mortgage rates. Self-employed higher-end home buyers needing to qualify for a non-traditional jumbo mortgage, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at firstname.lastname@example.org. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Non-QM Jumbo loan programs require a 10% to 20% down payment. The lower the borrower’s the lower the down payment requirement.
March 1, 2022 - 4 min read