NON-QM Cash-Out Debt Consolidation Refinance With 90% LTV

This Article Is About NON-QM Cash-Out Debt Consolidation Refinance With 90% LTV

NON-QM Cash-Out Debt Consolidation Refinance Explained:

The housing market is hot despite rising mortgage rates.

  • Nationwide, home prices have been steadily increasing year after year since 2010.
  • Most of Florida, Texas, Georgia, California, Colorado, New Jersey, Indiana, Pennsylvania, Kentucky, Mississippi, Michigan, Illinois have seen home values increase double digits
  • Many homeowners are thinking of consolidating all of their debts by doing a cash-out refinancing
  • Consumers are paying credit card interest rates north of 20%
  • Many consumers have car payments that are higher than $500 per month
  • Gustan Cho Associates Mortgage Group now offers NON-QM Cash-Out Debt Consolidation Refinance up to 90% LTV

In this article, we will discuss and cover NON-QM Cash-Out Debt Consolidation Refinance With 90% LTV.

Difference Between NON-QM Cash-Out Debt Consolidation Refinance Versus Traditional Cash-Out Refinance

Many homeowners who purchased their homes a few years ago have seen their values appreciate double digits.

NON-QM debt consolidation refinance is similar to traditional cash-out refinancing with one exception. With NON-QM Cash-Out Debt Consolidation Refinance, the loan to value is higher. The bottom line is more money for homeowners.

Debt consolidation is not always a fun subject to talk about.

  • Around the holidays many Americans sink deeper into their debt problems
  • Traveling to see family or buying gifts, the holiday season can be costly
  • There are numerous different reasons Americans find themselves tangled in debt
  • Sometimes a catastrophic event such as a car accident or unexpected medical expenses, or sometimes we are to blame with poor budgeting skills
  • No matter what the reason for being in debt is, you want to get out of debt as soon as possible
  • Many Americans are sitting on a gold mine of equity in their homes but are unable to tap into it due to credit scores or late payments
  • Obtaining a second mortgage in the year 2020 was next to Impossible
  • It looks like that trend will continue into the future
  • The good news is, even if your credit is whacked we still have mortgage loans available for you
  •  Gustan Cho Associates carry a full line of NON-QM mortgage products

We will explain these in more detail below.

What Are NON-QM Versus QM Mortgages

What Are NON-QM Versus QM Mortgages

What is a NON-QM mortgage?

  • QM stands for qualified mortgage
  • Just like it is spelled, it means a non-qualified mortgage
  • For more information on what a qualified mortgage is please see our blog explaining a QM MORTGAGE
  • In short, a NON-QM mortgage does not follow Fannie Mae, Freddie Mac, VA, or HUD guidelines for mortgage qualifications
  • They have their individual set of guidelines
  • These guidelines are black and white
  • We can get exceptions and have a gray area when it comes to underwriting

This opens up mortgage opportunities to many Americans who cannot qualify for your everyday conventional financing.

Debt Consolidation Versus Cash-Out Refinance Loans

what is Debt Consolidation Versus Cash-Out Refinance Loans

What is the advantage of a debt consolidation loan versus a cash-out refinance?

  • Most homeowners who do a cash-out refinance mortgage intend on paying off debt with the proceeds
  • Why not go the extra mile with NON-QM Debt Consolidation Cash-Out Refinance versus traditional cash-out

By doing so, homeowners with 680 credit scores can go up to 90% Loan To Value.

LTV On NON-QM Cash-Out Debt Consolidation Refinance Versus Traditional Cash-Out Refinance

With NON-QM mortgage loans, there is a major advantage.

  • That advantage is the maximum loan-to-value thresholds
  • With cash-out NON-QM Loans, borrowers are capped at 80% loan to value
  • But if you were to do a debt consolidation refinance, borrowers are capped at 85% loan-to-value
  • That extra 5% can mean getting out of debt faster!
  • For credit score 680 and above borrowers can go up to 90% loan to value for a debt consolidation NON-QM mortgage
  • That’s right, 90% loan-to-value, that is unheard of in the mortgage industry
  • When completing a debt consolidation NON-QM mortgage, you will pay your creditors directly with the loan and can receive a maximum of $2,000 cash in hand after closing
  • This is a great opportunity to get back on your feet

Below is a grid of credit scores and maximum loan-to-value is allowed for NON-QM lending.

Credit Scores Versus Maximum LTV Cash-Out Limit

what are Credit Scores Versus Maximum LTV Cash-Out Limit

Borrowers’ credit scores dictate the maximum loan to value allowed on non-QM cash-out refinance financing.

Here are the credit scores versus Debt Consolidation Versus Traditional NON-QM Cash-Out LTV Limits:


  • Cash-Out Refinance 70%
  • Debt Consolidation Refinance 75%


  • Cash-Out Refinance 80% LTV
  • Debt Consolidation Refinance 80 LTV


  • Cash-Out Refinance 80%
  • Debt Consolidation Refinance 85%


  • Cash-Out Refinance 85% LTV
  • Debt Consolidation Refinance 90% LTV

Case Scenario Where NON-QM Cash-Out Debt Consolidation Refinance Benefits Homeowners

what is the Case Scenario Where NON-QM Cash-Out Debt Consolidation Refinance Benefits Homeowners


Daniel has a home in Riverside California worth $450,000. The current credit score of 611 due to a few late payments on his mortgage and vehicle. He is not married and has the debts below:

Mortgage –

  • $274,000

2nd Mortgage (HELOC) –

  • $54,400

Auto Loan –

  • $17,500

Credit Card 1 –

  • $11,700

Credit Card 2 –

  • $10,300

Personal Loan –

  • $7,500

Total Debt – $375,400

Daniel was able to combine all of his Consumer Debt into one easy-to-make monthly payment.

  • At the end of this debt consolidation refinance, Daniel was saving over $700 a month
  • Can you imagine what you would do with $700 a month?
  • Especially while struggling
  • These loans can be life-changing
  • He would NOT be able to do this loan with a conventional or FHA loan due to his late payments

This loan allows Daniel to hit the reset button and get a second chance!

NON-QM Lending Guidelines

NON-QM Loans are becoming increasingly more and more popular.

  • Home Buyers do not have a mandatory waiting period after bankruptcy and/or housing event like government and/or conventional loans
  • There is no maximum loan limit
  • There is no private mortgage insurance required
  • Gustan Cho Associates has 95% LTV NON-QM Jumbo Mortgages with no mortgage insurance
  • We offer bank statement loans for self-employed borrowers with no private mortgage insurance and no tax returns required
  • Loan Limits can be up to $3 million and may be higher depending on circumstances

NON-QM Mortgages are NOT for borrowers with bad credit. Many borrowers with great credit can benefit from our non-QM loan programs.

Non-Borrowing Spouses Debt Does Not Count In Community Property States

what is Non-Borrowing Spouses Debt Does Not Count In Community Property States

Another great feature of NON-QM loan is, NON-QM loans are “conventional” in a sense that community property states rules are not applied:

  • They also do not have to follow conforming or FHA loan limits
  • There are maximum loan limitations typically $1,000,000 to $3,000,000 depending on credit score

If you have done a cash-out loan in the past, you will understand 90% loan-to-value is out of this world!

  • It really opens up the opportunity to get you out of the hole that you’re in
  • If you feel like a NON-QM mortgage loan might fit the needs of yourself or your family, please reach out to us directly
  • Contact Mike Gracz on 630-659-7644 or shoot an email to [email protected]
  • We are experts on the ins and outs of NON-QM Mortgage lending
  • There are very few situations we have not come across in the past, we are always here to help
  • If for any reason you do not qualify today, or you are not happy with the terms you qualify for, we will put you on a financial plan to qualify for the right mortgage as soon as possible

Consolidating your Consumer Debt into tax-deductible mortgage interest has many benefits. We are available seven days a week to go over your scenario!

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