This Article Is About NON-QM Mortgage One Day Out Of Foreclosure And Bankruptcy: NON-QM loans were one of the hottest mortgage loan programs prior to the coronavirus outbreak that hit the nation in February 2020. Non-QM loans made homeownership possible to homebuyers who would otherwise not have qualified for a mortgage. Non-QM and alternative financing […]
What Are Non-QM Loans?
Non-QM loans are mortgages that don’t meet the requirements for Qualifying Mortgages (QM).
Non-QM loans are not backed by the government like FHA, VA and USDA loans, and they don’t conform to standards of Fannie Mae or Freddie Mac.
Borrowers who have unusual sources of income, are experiencing credit challenges or need to purchase investment property can often benefit from a non-QM loan.
Generally, there are mandatory waiting period requirements after foreclosure and/or bankruptcy. However, Gustan Cho Associates offers non-QM loans one day out of foreclosure and bankruptcy with no waiting period requirements. There is a 30% down payment requirement.
There are many write-offs associated with being self-employed that take away from your buying power for a mortgage. The more income you claim, the more income taxes you pay. If you are in the market to purchase a home, we recommend you tell your CPA. They will file your taxes with last write-offs to increase your buying power. Sounds easy right?
Dozens of non-QM loan programs have been created and launched in recent years. A large percentage of homebuyers who cannot qualify for traditional loans gravitate towards non-QM loans. This holds especially true for self-employed borrowers who do not have to provide income tax returns and can just use bank statement deposits.
The asset-depletion mortgage loan program benefits higher net worth individuals who do not have a regular steady income. Non-QM loans are becoming increasingly popular and benefit borrowers who need alternative nontraditional mortgage loan programs.
You will probably have your mortgage for many years, so choosing the wrong product or mortgage lender could be very costly. Here’s what you need to know about choosing the right mortgage for your situation.
Self-employed borrowers are now eligible to get an approve/eligible per automated underwriting system with one-year income tax returns.
Non-QM mortgages help borrowers who need a little more flexibility to qualify. You might have to prove your income without tax returns, or borrow a very large amount or get a loan months after bankruptcy or foreclosure. Non-QM loans are also called non-prime loans or portfolio loans.he