NON-QM Cash-Out Debt Consolidation Refinance

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

Gustan Cho Associates are mortgage brokers licensed in 48 states

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

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.

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 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 is a NON-QM mortgage? QM stands for a 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 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

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 scores 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

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


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:


  • $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

Another great feature of NON-QM loans 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. 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!

We are experts on the ins and outs of NON-QM Mortgage lending. Contact Mike Gracz on (800) 900-8569 or shoot an email to

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