Types Of NON-QM And Bank Statement Portfolio Loans

This BLOG On NON-QM And Bank Statement Portfolio Loans Was UPDATED On August 27th, 2017

NON-QM And Bank Statement Portfolio Loans are mortgage loans that do not conform to Fannie Mae or Freddie Mac lending guidelines.

  • NON-QM And Bank Statement Portfolio Loans are mortgage loans that are held by the lender’s own portfolio.
  • Home Buyers can qualify for home loans one day out of bankruptcy and foreclosure with NON-QM Loans.
  • Bank Statement Loans For Self Employed Borrowers now makes business owners and self employed borrowers qualify for home loans with no tax returns.
  • Income is derived by the average of the past 24 months bank deposits and not withdrawals.
  • 20% down payment is normally required.
  • We do offer 10% down payment NON-QM Loans but borrowers need 680 FICO Credit Scores.
  • Mortgage Rates are higher on NON-QM And Bank Statement Portfolio Loans.

Terms Of NON-QM And Bank Statement Portfolio Loans

  • Most portfolio loans are adjustable rate mortgage products ( ARM ) which are amortized over 30 years. 
  • There are 30 year fixed rate Non-QM And Bank Statement Portfolio Loans available.
  • They are not balloon mortgages and are 30 year amortized mortgage loans. 
  • For example, a 7/1 ARM loan has a fixed mortgage rate for the first 7 years and adjusts every year for the remaining 30 years. 
  • Portfolio loans are based on an index plus a margin. 
  • The margin is always constant and the index is based on either the Libor, COFI, CMT, or other index the portfolio lender decides on prior to issuing the mortgage loan commitment.

Condotel NON-QM And Bank Statement Portfolio Loans

Condotel mortgage loans are portfolio loans that are very popular.

  • Condotel financing is one of my specialties. 
  • The Gustan Cho Team at USA Mortgage offers condotel purchase, condotel refinance, and condotel cash-out refinance loans. 
  • Minimum credit score requirements for condotel mortgage loans for condotel mortgage loan borrowers are 680 FICO .
  • No late payment history in the past 12 months . 
  • The maximum loan to value is 75% on condotel purchase loans, condotel refinance loans, and condotel cashout refinance loans for first and second homes. 
  • The condotel unit needs to have at least one bedroom and a functional kitchen in order to qualify.
  • Condominium Units needs to be at least 500 square feet.  
  • The condotel project has to be financially sound and cannot have any current major building violations nor any pending major lawsuits.

Investment Condotel Financing

For investment condotel financing, the maximum loan to value requirement is 60% LTV.

  • The 60% loan to value requirement is for investment condotel purchase loans, investment condotel refinance loans, and investment condotel cashout refinance loans.

Non-Warrantable Condo Portfolio Loans

We offer non-warrantable condo portfolio loans throughout the United States.

  • The maximum loan to value for non-warrantable condo portfolio loans is 80% LTV. 
  • They are 30 year adjustable rate mortgages. 
  • There are 3/1 ARM, 5/1 ARM, and 7/1 ARM portfolio loans and the index is based on the one year CMT and the margin is set at a constant 3%. 
  • There are no prepayment penalty. 
  • Minimum credit scores for non-warrantable condo portfolio loans is for the borrower to have at least a 680 FICO score.
  • Borrowers maximum back end debt to income ratio for the mortgage loan borrower cannot be greater than 45%. 
  • Non-warrantable condo portfolio loans are extremely popular throughout the United States.

Properties That Cannot Get Conventional Financing

Borrowers who cannot get conventional financing, NON-QM And Bank Statement portfolio loans may be the route to go.

  • There are many reasons why borrowers might not qualify for a conventional loan. 
  • It may be because of the property or it may be because of the mortgage loan borrower does not qualify for a conventional loan.  
  • Portfolio loans are mortgage loans held by the lender and not sold on the secondary market.
  • NON-QM And Bank Statement portfolio lenders are much more lenient and open minded when qualifying the mortgage loan borrower or the subject property.

Home Buyers who need to qualify for NON-QM And Bank Statement Portfolio Loans, please contact The Gustan Cho Team at USA Mortgage at 1-800-900-8569 or text us for faster response at 262-716-8151 or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

Gustan Cho NMLS ID 873293
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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