Non-QM Down Payment Requirements For Home Buyers

This article covers Non-QM Down Payment Requirements For Home Buyers

Non-QM Down Payment Requirements For Home Buyers is anywhere between 10% to 30% on a home purchase. Let us at Gustan Cho Associates help you qualify for a non-QM mortgage that suits your needs. Apply Now with Gustan Cho Associates on the dozens of non-QM mortgage loan programs we have available for 2021. Many non-QM mortgage loan programs that have been halted last year due to the coronavirus pandemic are now back in full force. In this article, we will discuss and cover non-QM loans and their down payment requirements.

Updated Non-QM Guidelines For 2021

Non-QM Loans are becoming increasingly popular for homebuyers who do not meet government and conventional mortgage guidelines. Non-QM, which refers to Non-Qualified Mortgages, are portfolio loans that investors do not require borrowers to meet government and conforming lending guidelines. Government and conventional loans have mandatory waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale. Non-QM Loans does not have any waiting period requirements after a housing event and/or bankruptcy.

Homebuyers do not have to wait after bankruptcy and/or housing event anymore during this rising housing market with Non-QM Mortgages.

Frequently Asked Questions On Non-QM Loans

Two of the most common inquiries we get daily by our borrowers are the following:

What Are Non-QM Mortgages

Non-QM Mortgages are alternative forms of home financing for borrowers who do not meet government and/or conforming lending guidelines. Non-QM loans are not just for borrowers with bad credit. Many prime borrowers with high credit scores can benefit from non-QM loans versus traditional government and conventional loans. Non-QM Loans are not hard money nor subprime mortgages. Non-QM mortgage rates are higher than traditional government and/or conventional loans. However, there is no private mortgage insurance required on all Non-QM Loans. There are no maximum loan limits. There is no pre-payment penalty on residential owner-occupant loans. Non-QM loans are for both primary owner-occupant homes and investment properties.

Asset Depletion Mortgages With Non-QM Loans

Borrowers with assets without a steady stream of income may qualify for our Asset Depletion Loan Program at Gustan Cho Associates.

  • No income is necessary
  • The way our Asset Depletion Loan Program works is our mortgage underwriters will take the borrower’s total assets and divide it by 60 months
  • The resulting figure will be the borrowers monthly qualifying income
  • 401k’s and other retirement accounts can be used
  • 70% of retirement assets are used as liquid assets
  • Take the liquid assets and divide this by 60 months and you have the monthly qualifying income

Exceptions can be made on a case-by-case basis. We have multiple investors who cater to Asset Depletion Loan Programs.

Waiting Period After Bankruptcy And Housing Event On Non-QM Loans

What is the waiting period after bankruptcy and housing incident for non-QM loans

There is no waiting period requirements after bankruptcy and/or housing event:

Borrowers with over 720 FICO can qualify for a 10% down payment Jumbo Non-QM Mortgages.

Mortgage Guidelines On Non-QM Down Payment Requirements

Every investor has their own Non-QM Mortgage Guidelines.

  • There are no set mortgage guidelines on Non-QM Loans like there is with FHA, VA, USDA, and Conventional Mortgages
  • Many Lenders are open-minded when it comes to making exceptions to borrowers who may not meet one or two of their lending requirements
  • Each lender can make exceptions if a solid borrower does not meet one or two of their Non-QM Mortgage Guidelines
  • Since lenders do not sell these loans to Fannie Mae and/or Freddie Mac after it funds, mortgage underwriters have a lot of underwriter discretion
  • Gustan Cho Associates has over a dozen Non-QM Investors
  • Some borrowers may meet a set of guidelines by one lender but not another

The team at Gustan Cho Associates are experts in putting together a file and making it work for the borrower to get approved and funded.

Non-QM Down Payment Requirements And Interest Rate Pricing

Non-QM Down Payment Requirements is between 10% to 20%. There are many Non-QM Mortgage Investors so there are not a set Non-QM Down Payment Requirements. The amount of down payment depends on the following factors:

  • Borrowers credit scores
  • Primary home versus investment home financing
  • How long has it been since they filed bankruptcy and/or had a foreclosure, deed in lieu, short sale
  • Type of property

Non-QM Down Payment Requirements Versus Mortgage Rates

What are the requirements for a non-QM down payment and the mortgage rate

Mortgage rates depend on the following factors:

  • Borrowers down payment
  • Borrowers credit scores
  • Primary home versus investment home financing
  • How long has the bankruptcy and/or housing event been seasoned

For more information on this blog and/or other mortgage topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The staff of Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays. The team at Gustan Cho Associates has dozens of lending partnerships with non-QM wholesale lenders.

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