NON-QM 95% LTV Debt-Consolidation Refinance

NON-QM 95% LTV Debt-Consolidation Refinance Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On NON-QM 95% LTV Debt-Consolidation Refinance Guidelines Was PUBLISHED On April 29th, 2019

A home mortgage is most people’s largest monthly payment.

  • However, home mortgages are amortized over a 30-year term
  • Besides having a mortgage payment, most homeowners have large monthly debts
  • Multiple debts can add up to a significant amount
  • Many homeowners who make high income often live paycheck to paycheck after getting their net paycheck after tax deductions and end up paying all of their monthly payments due
  • Paying your minimum high-interest monthly credit card payments often gets consumers nowhere
  • This is because the median credit card interest rates are 22.5% and the minimum monthly payments will only cover the interest payments
  • Average car payments are $400.00 per month
  • The reason why car payments are so high is that they are amortized over a shorter term than mortgages
  • A $400 monthly auto payment is equivalent to an $80,000 mortgage loan balance

In this blog, we will discuss NON-QM 95% LTV Debt-Consolidation Refinance Guidelines and how homeowners with little equity can qualify. Our new Debt-Consolidation Refinance Loan Program allows homeowners to do a Debt-Consolidation Refinance with only 5% equity.

Cash-Out Refinance Mortgage Guidelines On Government And Conventional Loans

Equity is the name of the game when it comes to cash-out refinance mortgages.

  • The loan-to-value depends on the maximum cash-out a borrower can take. HUD, the parent of FHA, allows up to 85% loan-to-value or 15% equity
  • Fannie Mae and Freddie Mac allow up to 80% LTV or 20% equity
  • The Department of Veterans Affairs (the VA) will allow up to 100% LTV or zero equity on single-family cash-out refinance VA Loans

With the creation and launch of 95% LTV Debt-Consolidation Refinance with as low as 5% equity.

Debt Consolidation Versus Cash-Out Refinance Mortgages

Most lenders consider debt consolidation loans as cash-out refinances. Lenders on government and conventional loans do not care what borrowers do with their cash-out proceeds. They can use it to pay off debts, do renovations to their homes, purchase a second home, pay for a wedding, childcare, hospice care, or investments.

How Does NON-QM 95% LTV Debt-Consolidation Refinance Work

However, debt consolidation mortgages are used to pay the first mortgage lien off and pay outstanding debts. To qualify for NON-QM 95% Debt-Consolidation Refinance, the borrower needs a 740 credit score. Borrowers with a 660 credit score can qualify for a 90% LTV Debt-Consolidation Refinance Loan. Borrowers with credit scores down to 500 FICO can qualify for an 85% Loan-To-Value NON-QM Debt-Consolidation Mortgage. This unique home loan program will enable homeowners to get a new home loan to pay off the first lien position as well as other debts such as automobiles, boats, RV, motorcycles, snowmobiles, student debt, personal debts, credit card debts, and any other debts.

NON-QM 95% LTV Debt-Consolidation Refinance Is For Primary Home Loans

NON-QM 95% LTV Debt-Consolidation Refinance Loans are for owner-occupant primary homes only. Second homes and investment properties do not qualify. Borrowers with higher monthly debts such as larger car payments, and credit card debts often benefit from NON-QM 95% LTV Debt-Consolidation Refinance Loans. This loan program can save homeowners countless of money every month.

Qualifying For A Mortgage With A Lender With No Overlays

For more information on NON-QM 95% LTV Debt-Consolidation Refinance Loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at We are available 7 days a week, evenings, weekends, and holidays.

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