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Non-QM Jumbo Mortgage Minimum Credit Scores Requirements

Gustan Cho Associates
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Non-QM Jumbo Mortgage Minimum Credit Scores Requirements

This BLOG On Non-QM Jumbo Mortgage Minimum Credit Scores Requirements Was PUBLISHED On June 10th, 2019

Non-QM Jumbo Mortgage
Gustan Cho Associates

Non-QM Loans are portfolio loans that do not have to meet government and/or conventional lending guidelines.

In this blog, we will discuss Non-QM Jumbo Mortgage Guidelines by lenders.

What Are Non-QM Mortgages

What Are Non-QM Mortgages
Gustan Cho Associates

Non-QM Mortgages are owner-occupant primary home and investment property real estate mortgage programs that do not have to meet government and/or conventional mortgage guidelines.

  • Non-QM Loans do not have any waiting period requirements after bankruptcy and foreclosure
  • Non-QM Loans are mortgages for borrowers who do not meet government and/or conforming mortgage guidelines
  • There is no private mortgage insurance required on Non-QM Mortgages
  • There is no maximum loan limit with Non-QM Loans. Borrowers with late payments in the past 12 months can qualify for a mortgage with Non-QM Loans
  • Self-Employed Borrowers can qualify for Non-QM Jumbo Mortgage Loans with credit scores down to 500 FICO
  • Bank Statement Mortgages for Self-Employed Borrowers do not require any income tax returns
  • Borrowers can qualify for Non-QM Mortgages with late payments in the past 12 months
  • This includes mortgage lates

We go by the average monthly deposits of the borrower in the past 12 months.

Jumbo Non-QM Mortgages Versus Traditional Jumbo Loans

Jumbo Non-QM Mortgages Versus Traditional Jumbo Loans
Gustan Cho Associates

Traditional Jumbo Loans require a 700 minimum credit score:

  • Traditional Jumbo Mortgages have mandatory waiting period requirements of 7 years after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • However, Non-QM Jumbo Mortgage Loans do not have the tough lending requirements
  • Traditional Jumbo Mortgages do
  • Minimum credit score requirements on Non-QM Jumbo Mortgage Loans is 500 FICO
  • The lower the borrower’s credit score the higher the down payment and mortgage interest rate
  • There is no minimum waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • There is no private mortgage insurance required
  • Down payment requirements on Non-QM Jumbo Mortgage Loans is 10% to 25%
  • The higher the borrower’s credit scores, the lower the down payment requirement
  • The lower the borrower’s credit scores, the higher the down payment requirement
  • The lower the credit scores and down payment, the higher the mortgage interest rates on Non-QM Jumbo Mortgage Loans
  • Most Traditional Jumbo Lenders will require a maximum of 43% debt to income ratios

However, with Non-QM Jumbo Mortgage Loans, maximum debt to income ratio requirements is 50% DTI.

Borrowers who may have additional questions on this blog and/or other topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

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