Mortgage Rates On NON-QM Loans And No Doc Mortgage Loans


Mortgage Rates On NON-QM Loans And No Doc Mortgage Loans

This BLOG On Mortgage Rates On NON-QM Loans No Doc Mortgage Loans Was Updated On November 28th, 2018

Current Home Mortgage Rates after the election of President Donald Trump has been increasing to an all time high since 2008. Rates on conventional loans are in the 5.0% range for prime borrowers. Jumbo mortgage rates for prime borrowers are nearing 6% and many times higher due to LLPA.

  • Many home buyers cannot qualify for government and conforming loans due to higher housing prices
  • FHFA has increased conforming limits on conventional and high balance loans throughout the United States
  • NON-QM Loans are becoming the home loan of choice for many home buyers
  • NON-QM Loans are not HARD MONEY LOANS
  • NON-QM Loans are not for borrowers with bad credit

Perfect credit profile borrowers can benefit with non-qm loans versus government and/or conventional loans:

Increase Of Mortgage Rates And Housing Prices

Mortgage rates have been steadily going up since new year 2018:

  • Many borrowers are waiting for that big correction
  • Current mortgage rates for FHA loans have gone up three quarter of a percentage point since last October 2017
  • Conventional mortgage rates are currently hovering around the 5.0% mark
  • This year has been the year where NON-QM Loans and no doc mortgage loan programs have hit the market
  • Bank Statement Mortgage Loan programs for self employed borrowers are now very popular
  • Many home buyers with prior bankruptcies and foreclosures no longer have to wait the minimum waiting period after bankruptcy and/or foreclosure
  • This is due to the many options they now have with the introduction of NON-QM Loans and Alternative Financing loan programs

Mortgage Rates On Non-QM Loans On Second Home Financing

Current home mortgage rates for second homes are the same as owner occupied rates depending on borrowers credit profile and income as well as the borrower’s debt to income ratio.

Where Are Mortgage Rates On NON-QM Loans Headed?

Home Mortgage Rates On NON-QM Loans started to creep up starting last November and starting the new year, mortgage rates have consistently have been going up week after week.

  • When the stock market goes up, mortgage interest rates go up
  • The Dow Jones has been in positive territory week after week
  • Historically, the stock market has always done very well in January
  • Many analysts predict a major correction and so do investors
  • Those borrowers who have not locked their mortgage rates are now paying the price
  • Many of my clients who have a clear to close are delaying their closing hoping that there will be a market correction
  • Borrowers who are refinancing can afford to speculate in waiting for mortgage rates to drop
  • But home buyers do not have their luxury unless they want to delay their purchase closing

Mortgage Rates And Economic News

Nobody has a crystal ball and can predict what the credit markets will do.

  • Interest rates have gone up so rapidly this year
  • Many, including myself, feel that there will be a major market correction
  • However, interest rates have been spiking up week after week
  • For borrowers who barely qualified for a mortgage because of tight debt to income ratio I strongly recommend that they lock their rates
  • There is a strong possibility that mortgage rates can drop
  • There is also the probability that mortgage rates will continue to climb

Introduction Of NON-QM Loans And Alternative Lending

NON-QM Loans and subprime lending is back.

  • Bank statement mortgage loans and no doc mortgage loans for self employed borrowers are back
  • They are more popular than ever before
  • Mortgage Rates On NON-QM Loans are generally higher than traditional financing
  • However, most non-qm loan programs do not require income verification and/or tax returns
  • There is no mortgage insurance required on non-qm loans
  • 5% down payment NON-QM Jumbo Mortgage with no private mortgage insurance is now available
  • Borrowers can qualify for non-qm loans with credit scores down to 500 credit scores
  • No limits on non-qm mortgages like conforming and government loans
  • 5% to 20% down payment

Mortgage rates on non-qm loans depends on borrowers credit scores and down payment. Higher credit score borrowers can get better rates on non-qm loans than conforming loans due to no private mortgage insurance. Non-qm mortgage rates ranges between 6% to 9% with no mortgage insurance. For more information on non-qm financing, please contact Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at

Gustan Cho, NMLS ID 873293

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