Using Non-QM Loans After Being Denied

Using Non-QM Loans After Being Denied For a Mortgage

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover using non-QM loans after being denied a traditional mortgage or because the other lender did not have the mortgage options suited for the homebuyer. Non-QM loans are not just for borrowers with bad credit. Non-QM loans can be for perfect credit borrowers but they may not fit into government or conforming lending guidelines.

Non-QM mortgages are portfolio loans and there are no uniform guidelines like FHA, VA, USDA, Fannie Mae, and Freddie Mac.

Non-QM Versus Qualified Mortgages

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A significant difference between a QM loan and a Non-QM loan is that a Non-QM loan uses alternative methods of income verification (vs. the standard income methods of verification of a QM loan) to help the borrower get approved for a mortgage loan. Non-QM Loans are becoming more and more popular. In the following paragraphs, we will cover and discuss using non-QM loans after being denied or because the lender did not have a particular mortgage loan program for the borrower.

Using Non-QM Loans After Being Denied or Because Lender Does Not Have Specialty Mortgage Options

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Using non-QM loans after being denied for a conforming mortgage benefits borrowers who cannot qualify for traditional mortgage loans. Using non-QM loans after being denied for primary, second home, and investment properties makes a home purchase possible where it would have otherwise not been possible. Using non-QM loans after being denied by another lender requires a 10% to 20% down payment. There is no private mortgage insurance required on non-QM loans. There are no maximum loan limit caps on Non-QM Loans.

Using Non-QM Loans For Home Purchases on Residential Properties

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We now offer unique collateral residential property financing. I can offer you mortgage loans on non-warrantable condominiums. Another niche field I specialize in is condotel financing. Gustan Cho Associates can offer any condo-hotel purchasers a condotel loan and close in as little as 21 days.

Using Non-QM Loans For Non-Conforming and Non-Prime Loans

There are only a small limited amount of banks and lenders that will even entertain a condotel loan. All condotel mortgage loans are portfolio loan products and I can help you either with a purchase condotel mortgage loan or a refinance condotel mortgage. Cashout refinance condotel financing is very popular.

Contact us at Gustan Cho Associates at 262-716-8151 or text us for a .faster response. Or email us at Gustan Cho Associates at  You can check out our website at if you need a condotel mortgage loan.

Using Non-QM Loans For Multi-Family Property Financing

I can also offer you multi-unit property financing as well as mixed-use properties and hobby farms.  Income-producing mix-use properties and income-producing hobby farms are also eligible for using non-QM loans for home purchases and refinance transactions..

Using Non-QM Loans After Being Denied Due To No Comps

Unique Residential Properties Where No Comps Are Required

Many potential home buyers are restricted from buying a dream home because the house they want to buy has no comparables. The majority of the lenders require a home appraisal that has the market value valuation approach and will not approve an appraisal that has no recent nearby comparables.

The good news is that we offer unique property financing and accept the cost-value appraisal approach. Whether you are buying a white elephant that is the biggest house in the neighborhood or a huge estate in the middle of nowhere, contact us at to explore using non-QM loans for home purchases that are available to you.

Using Non-QM Loans After Being Denied For Expatriates

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Gustan Cho Associates expatriate mortgage programs to individuals who have not yet established any credit in the United States or have obtained a social security number. The way these mortgage programs work is that we treat these individuals like they had a credit score of 740 FICO.

How Using Non-QM Loans After Being Denied For Expatriate Works

The one major qualification is that they can come to the United States to work for a U.S. company. Borrowers need a valid work visa and are financially able to put down a 20% down payment on their purchase and able to meet our principal, interest, taxes, and insurance one-year reserve requirements. Loan-to-value requirements on residential primary portfolio loans are 80% up to $1.5 million and for loans up to $3,000,000, loan-to-value requirements might be 70% to 75% depending on the borrower’s credit profile.

Asset-Depletion Mortgage Programs

No doc loans or state income loans have been dead and buried for several years now but we can offer you something comparable for those who are not showing a lot of income on their tax returns. Asset depletion mortgage programs calculate a 5% return on their qualifying assets, year over year, and depleted out to a max-age of 85 years old. Afterward, any remaining asset amounts can be rolled back into the calculation percentage potentially increasing it further.

How Does Non-QM With No Income Verification Work?

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Furthermore, this can be added to fixed or wage income to qualify and doesn’t require pledged funds from the borrower. Also, please note, given this is an unconventional way to calculate income, the loan-to-value may be reduced depending on the overall profile of the borrower. One of our most popular non-QM loan programs at Gustan Cho Associates is our non-QM mortgages one day out of foreclosure and bankruptcy with a 30% down payment.

Using Non-QM Loans After Being Denied For Self-Employed Borrowers

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Gustan Cho Associates now offers Non-QM Loans and Bank Statement Loans for self-employed borrowers.  There are no waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale with Non-QM Loans. We also offer bank statement loans for self-employed borrowers with no income tax returns required.

12 months bank statement deposits are averaged and used as monthly income. Withdrawals do not matter.  Real estate investors, real estate developers, and property flippers can benefit from our fix-and-flip investor loan programs.

Qualify Today Using Non-QM Loans After Being Denied Traditional Mortgages

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For more information about the contents of this blog or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

This Blog on using non-QM loans after being denied was updated and published on October 18th, 2022.

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