NON-QM Cash-Out Refinance Mortgage Guidelines


This BLOG On NON-QM Cash-Out Refinance Mortgage Guidelines Was PUBLISHED On May 13th, 2019

NON-QM Loans are one of the most popular loan programs in the United States.

  • There are no waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • NON-QM Loans are not just for home buyers with bad credit
  • Many self-employed borrowers with perfect credit benefit with non-qm bank statement loans where no income tax returns are required
  • Many borrowers often mistake non-qm loans with hard money and/or subprime loans
  • That is not the case
  • It is possible to get non-qm mortgage rates in the 5.0% to 6.0% range
  • Non-qm mortgage rates are dependent on borrower’s credit scores and down payment
  • The higher the credit scores and the more down payment borrowers put down, the lower the rates
  • Borrowers can also buy down mortgage rates with discount points
  • Non-qm loans are for both purchase and refinance transactions
  • There is no maximum loan limits
  • NON-QM Jumbo Mortgages enables self-employed borrowers with no tax returns to qualify just using their business bank statements and under 700 credit scores
  • There is no private mortgage insurance required on all non-qm loans
  • There are non-qm mortgages for owner-occupant primary homes and investment homes

In this blog, we will discuss NON-QM Cash-Out Refinance Mortgage Guidelines for homeowners and how to get the best non-qm mortgage rates.

Benefits Of NON-QM Cash-Out Refinance Mortgage Versus Other Loan Programs

Real estate prices have been appreciating in most parts of the United States. FHA, VA, and Conventional Loans have maximum loan limits. FHA maximum loan limits for 2019 is $327,814. Conventional Loan Limits is capped at $484,350. VA maximum loan limits are capped at $484,350.

  • There are areas in Florida, Texas, California, Colorado, Georgia, Michigan, Mississippi, New Jersey, Ohio, Kentucky, and other states have seen home values appreciate year after year since 2012
  • The FHFA has increased conventional loan limits three years in a row due to rising home prices
  • HUD, the parent of FHA, has increased FHA Loan Limits for three years in a row due to increasing home values
  • One of the greatest benefits of non-qm cash-out refinance mortgage loans is there are no maximum loan limits

Gustan Cho Associates at Loan Cabin Inc. will go up to $3 million loan limit but can go higher on a case by case basis analysis.

Waiting Period Requirements On Cash-Out Mortgages

There is a mandatory waiting period on cash-out mortgages.

  • The waiting period depends on the type of loan program
  • FHA requires a six month waiting period on rate and term refinances
  • FHA requires a one year waiting period on cash-out refinances
  • Maximum loan to value on FHA Loans on cash-out refinances is 85% LTV
  • Fannie Mae and Freddie Mac require a six month waiting period on rate and term refinances and cash-out refinances on conventional loans
  • Maximum loan to value on non-qm cash-out is 80%
  • NON-QM Cash-Out Refinance Mortgage Guidelines requires a six month waiting period on rate and term and cash-out refinance mortgages on owner-occupant homes
  • The maximum loan to value on non-qm cash-out is 80% LTV
  • The cash-out refinance waiting period gets extended to one year on investment home mortgages
  • In order to be eligible for cash-out refinance mortgages, you need equity in your home with the exception of VA Loans

VA Home Loans allows 100% loan to value on cash-out refinancing.

For more information on this topic and/or other mortgage/real estate related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at

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