In this blog, we will discuss and cover refinancing non-QM loans to government and conventional mortgages. Refinancing NON-QM loans to government or conventional loans is possible after the initial home mortgage closing. This only holds true if the deal makes sense. Homebuyers who initially closed on their home loan with a non-QM loan at a high rate, can always refinance their non-QM loan to government and/or conventional loans anytime when they are ready. The borrower needs to get a net tangible benefit in order for the loan officer to be able to refinance the borrower. NON-QM Loans are not always for borrowers with bad credit. Many home buyers who need higher-end mortgages due to surpassing loan limit requirements often opt for non-qm loans rather than Jumbo Mortgages.
Non-QM Versus Traditional Mortgages
NON-QM Mortgages have many favorable terms and are easier to qualify than traditional jumbo mortgages. Borrowers can qualify for non-qm jumbo mortgages with a 10% to 25% down payment with no private mortgage insurance. Self-employed borrowers can qualify for bank statement loans with no maximum loan limits and no income tax returns required. In this blog, we will discuss and cover refinancing non-QM loans to government and conventional mortgages.
Benefits Of NON-QM Mortgages
There are many benefits of non-qm mortgages. NON-QM loans are becoming increasingly popular for homebuyers with less than perfect credit, buyers with late payments in the past 12 months, buyers with not enough seasoning after bankruptcy or housing event, buyers who need higher loan limits, and self-employed borrowers.
Benefits of Taking Non-QM Mortgage Versus Other Loan Program
Non-QM and alternative loan programs benefit homebuyers who cannot qualify for a traditional government and/or conventional loan. Many homebuyers would miss out of the bullish housing market if they could not have gone with non-QM loans.
Here are the benefits of non-QM and alternative financing:
- There is no waiting period after bankruptcy and/or housing event
- Borrowers can qualify with late payments in the past 12 months
- Borrowers with credit scores down to 500 FICO can qualify
- Self-employed borrowers can qualify with no income tax returns required
- The maximum loan limit is $3 million: Higher loan limits available on a case per case basis
- There is no private mortgage insurance required on all non-QM loans
NON-QM Loans are not just for borrowers with bad credit. Many home buyers with good credit can benefit by this loan program. This holds true for high credit self-employed borrowers where there are no income tax returns required. Gustan Cho Associates offers 10% down payment Jumbo loans and non-QM jumbo mortgages. 720 credit scores are required on traditional and non-QM 90 LTV jumbo mortgages.
Borrowers Benefiting From Refinancing NON-QM Loans To Traditional Mortgages
NON-QM Mortgage Rates are typically much higher than government and conventional loans. This holds true for borrowers with lower credit scores and higher loan to values. Many non-QM borrowers have mortgage rates in the 6% to 9% range. Many who closed their home loans with a non-QM mortgage often worked on their credit profile where they can qualify for traditional loans. Prime mortgage rates for prime borrowers today is hovering around 3.25%.
Refinancing non-QM Loans After Initial Home Closing
Homeowners can refinance their non-QM loans anytime after the initial closing of their home loan. There is no waiting period to refinance non-QM loans to other loan programs. Borrowers with higher non-QM mortgage rates can definitely benefit by refinancing non-QM loans to government and/or conventional loans. Gustan Cho Associates are experts in non-QM, government, conventional, and alternative financing loan programs.
Expert Mortgage Lender With Competitive Mortgage Rates
Gustan Cho Associates are experts in helping homeowners with high non-QM mortgage rates refinance to a lower rate traditional loan. We make sure the borrower has a net tangible benefit when refinancing non-QM loans to a government and/or conventional loan. The team at Gustan Cho Associates is extremely competitive on mortgage rates. We are experts in helping borrowers save money by refinancing them to a loan program that greatly benefits them. For more information on refinancing non-QM loans to traditional lower rate mortgages please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at firstname.lastname@example.org. Gustan Cho Associates Mortgage Group is available 7 days a week, including evenings, weekends, and holidays.
March 5, 2022 - 4 min read