Traditional and Non-QM Mortgage Loan Programs For Homebuyers

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About Traditional and Non-QM Mortgage Loan Programs For Homebuyers

The historic low mortgage rates are fueling a booming housing market. There are more homebuyers than an inventory of homes. Many homebuyers were buying homes at higher than list price due to the competition.  Many renters who have not planned on buying a home are meeting their loan officers to get qualified and get pre-approved so they can start shopping for a mortgage. The housing shortage and demand of buyers are expected to continue through 2023. Due to the new traditional and non-QM mortgage loan programs in the market, there is an abundance of qualified homebuyers that have been pre-approved. Homebuyers with bankruptcy and/or foreclosure no longer have to wait for the three to seven-year waiting period after bankruptcy and/or a housing event thanks to non-QM loans. Gustan Cho Associates offers non-QM loans one day out of bankruptcy and/or foreclosure with a 30% down payment. Self-employed and business owners no longer have to worry about not being able to qualify for a mortgage due to not declaring sufficient adjusted gross income on their tax returns. In this article, we will discuss and cover the various traditional and non-QM mortgage loan programs available.

The Housing Market Remains Strong Despite Record High Inflation And Political Unrest

The Housing Market Remains Strong Despite Record High Inflation And Political Unrest

The housing market has not slowed since the start of the coronavirus outbreak in February 2020. The demand for housing outnumbers the inventory of housing. This is the main reason for skyrocketing home prices. Loan officers at Gustan Cho Associates have borrowers who were pre-approved prior to the coronavirus outbreak in February 2020 and are still looking for a home. They have been shopping for homes for close to 18 months. It is no doubt a seller’s market. Home sellers are getting multiple offers. Homes are not staying in the market long. Most homes will go under contract in a matter of days to a couple of weeks. Most buyers are buying homes over list price. Inflation is soaring. Buying a home will be a great hedge against inflation. People realize mortgage rates will be going up. Whatever the economy brings, or the political unrest we have among the Democrats and Republicans, the housing market seems unaffected by it. Gustan Cho Associates has launched several traditional and non-QM mortgage loan programs which we will discuss in the following paragraphs.

Updated Traditional and Non-QM Mortgage Loan Programs

Gustan Cho Associates is a mortgage company licensed in multiple states with a national reputation for being able to do loans other mortgage lenders cannot do. GCA Mortgage has zero lender overlays on government and conventional loans. The factor that Gustan Cho Associates is different than other lenders is we are mortgage bankers, correspondent lenders, and have the ability to broker mortgage loans to wholesale lenders. Gustan Cho Associates has over dozen lending partnerships with non-QM wholesale lenders. If there is a loan program in the market, you can be rest assured Gustan Cho Associates has it and can offer it. Non-QM and specialty mortgage loan programs have come to an abrupt halt once the coronavirus outbreak in early 2020. However, non-QM lenders have slowly returned. Better yet, many alternative loan programs such as non-doc home loans for primary residential homes made a comeback. We will be discussing the various new updated traditional and non-QM mortgage loan programs that are now available in the following paragraphs.

Popular Traditional and Non-QM Mortgage Loan Programs Offered At Gustan Cho Associates

As America and the global markets start to recover from the COVID-19 coronavirus outbreak, we are starting to see many traditional and non-QM mortgage loan programs return in full force. Gustan Cho Associates are mortgage experts who are able to offer more mortgage loan programs than most banks and other traditional financial institutions do not offer. Gustan Cho Associates has a national reputation for not having LENDER OVERLAYS on any of our qualified mortgage programs (QM MORTGAGE). We strive to please our clients and viewers of our newsletter and blogs so we are always on top of the new loan programs being launched in today’s marketplace. As mentioned earlier, we are mortgage bankers, correspondent lenders, and mortgage brokers. We have the ability to broker alternative financing loan programs. We want to keep our reputation of being able to offer loans other lenders cannot.

The Suspense And Return Of Non-QM Mortgages

During March 2020, we saw the mortgage markets start to panic. Lenders started to tighten their credit criteria and credit score overlays. Most NON-QM mortgage lending companies either went out of business or their loan programs were placed in suspense until further notice. In fact, numerous NON-QM mortgage outlets are now out of business. Many NON-QM borrowers are self-employed individuals who took a major hit during the COVID-19 coronavirus outbreak, especially early on. With what seemed to be nationwide lockdowns and local government restrictions on what Americans could and could not do. We saw many loan programs simply disappear. These programs included construction to permanent mortgage loans specific for doctors (and other professionals who require additional schooling). As the weeks and months passed, non-QM and alternative loan programs returned. Many mortgage lenders even launched new loan programs.

Traditional and Non-QM Mortgage Loan Programs: 90% LTV Jumbo Mortgages The Suspense And Return Of Non-QM Mortgages

Gustan Cho Associates has launched a traditional jumbo mortgage loan program that only requires a 10% down payment. The 90% LTV Jumbo Mortgage Loan Program only requires a 660 credit score. The debt to income ratio is capped at 50% DTI. The 10% down payment jumbo loan program has become a very popular loan program at Gustan Cho Associates. Most jumbo loan programs require a 20% to 30% down payment. However, our 90% LTV jumbo loan program is a traditional mortgage program with full documentation requirements and easier lending guidelines. Gustan Cho Associates offers non-QM jumbo loans with credit scores down to 500 FICO.  We also offer bank statement loans for self-employed borrowers with no income tax returns required.

Bank Statement Loans With No Income Tax Returns Required

BANK STATEMENT LOANS, and many loans created for investment properties.

If you have been following the news, you know there have been numerous changes throughout the mortgage market since the start of the COVID-19 coronavirus outbreak. Fannie Mae and Freddie Mac have changed their agency guidelines multiple times over this time frame. This is to protect the American people and prevent a future housing bubble. Now that COVID-19 coronavirus outbreak vaccines are available we are starting to see the economy rebound. Although turmoil is predicted in the near future, many mortgage programs are starting to come back out. Specifically, we would like to highlight the programs available for doctors and medical professionals, as this program just became available again!

Zero Down Payment Jumbo Loan Program For Doctors

$0 down payment jumbo loan program for doctors!

That’s right. There are loan programs available for doctors with a zero dollar down payment, even in the jumbo mortgage market. Many ask what is a doctoral program? It’s a unique program in which flexible guidelines are used to qualify borrowers who are beginning a specialized profession such as a doctor or a dentist. There are many doctor acronyms.

  • M.D. – Doctor of Medicine
  • D.O. – Doctor of Osteopathic Medicine
  • O.D. – Doctor of Optometry
  • D.P.M. – Doctor of Podiatric Medicine
  • D.D.S.- Doctor of Dental Surgery
  • D.M.D. – Doctor of Medicine in Dentistry
  • D.C. – Doctor of Chiropractic

These individuals may qualify for the doctor loan program. Why are these mortgage programs special? These doctor programs have the ability to exclude student loan debt from your debt to income ratio. It is no secret that medical professionals generally accumulate large student loan debt which can make it difficult to qualify for a mortgage loan. These programs allow up to 100% loan-to-value mortgage financing in most states. These loan programs do not have borrower-paid mortgage insurance. The mortgage insurance premiums are not paid out on a monthly basis but are included in your qualifying interest rate. What really sets this program apart is the ability to qualify based on future income. Many doctors start with lower income thresholds and then maximize their earning potential a few years into their career. These programs allow medical professionals to purchase a home based on future income, which can greatly increase buying power!

No-Doc Home Loans

No-doc home loans for primary homes

No-doc home loans for primary homes is a brand new loan program just launched at Gustan Cho Associates. 20% down payment and a minimum credit score of 640 FICO is required. Reserves are required on no-doc home loans. No income tax returns are needed. Only bank statements are required to determine the ability to repay their new mortgage.

Renovation Loan Programs

Renovation lending is still on hold with numerous lenders across the nation..

Gustan Cho Associates are still able to offer FHA 203K, Freddie Mac CHOICE Renovation, Fannie Mae HomeStyle mortgage loans. In today’s crazy market, renovating a home at the time of purchase or as a refinance is incredibly profitable. The current housing market is booming. It is next to impossible to buy a house in many areas of the country. Many buyers are forced to settle on a less than desirable property just to get into the housing market. A renovation loan will allow these borrowers to update the property to fit their needs. While renovation lending does not allow luxury upgrades such as installing a pool or a hot tub, it does permit many value-increasing renovations. Most clients use renovation mortgage lending to update kitchens, bathrooms, or add a bedroom. As many readers may know, renovating a kitchen king cost well above $30,000. Renovation mortgage lending can be your opportunity to make your dream home possible. For more questions surrounding renovation lending please call Mike Gracz on 630-659-7644 or send an email to [email protected]

NON-QM mortgage lending is back in full swing. There are still some programs unavailable such as the true 5% jumbo program, but we’ve seen relaxed guidelines nationwide. At the start of the COVID-19 coronavirus lockdowns, many bank statement mortgage loans went away completely. They have slowly rolled back out. When bank statement mortgages were available again, most of them required a 30% down payment. Bank statement mortgage loans are now back to a 10% down payment minimum. This is helping thousands of borrowers across the country get into the housing market. If you are a self-employed borrower who takes write-offs when filing your taxes to the IRS, you will want to reach out to Gustan Cho Associates for information on bank statement loans. We are experts in the NON-QM mortgage realm.

It is exciting when we see mortgage programs roll back out. Well, things may never get back to pre-pandemic guidelines, we are moving in the right direction. There were talks of Fannie Mae and Freddie Mac once again becoming privatized. Since the pandemic hit, talks of privatization seemed to stop. But many lenders are offering programs specific to certain borrowers such as new doctors. We have also seen guidelines loosening surrounding student loan debt. These are all steps in the right direction. Owning a home is still the American dream and Gustan Cho Associates can be the mortgage team that makes this dream possible.

We encourage you to check out our reviews and reach out to us today. We are available seven days a week and even on holidays for any mortgage-related questions. You can reach Mike Gracz directly at 630-659-7644. We would love the opportunity to give your application a second look even if you have been turned down by another lender. Thousands of Americans are dealing with lender overlays and not true mortgage guidelines. We look forward to hearing from
you and your family. Please call Mike Gracz to start your mortgage application today!