As the Coronavirus hit the ground, one thing that surely almost came to the most sudden halt was the QM mortgage scheme. Many non- QM lenders took advantage of the situation and the terms became even tougher. The one thing that we are still not sure of, who are the ideal non QM mortgage lenders?
This is the question that is quite a headache to many wishing to be part of a mortgage holder. Now let’s get deep into this discussion and find out more about non QM mortgage lenders. It is even more useful to understand for the self-employed mortgage seekers who cannot be able to access other mainstream mortgages.
Qualifying a mortgage for a self-employed borrower has ever since been a tougher process. This necessitates extra bureaucracies that tend to fall heavily on the side of the lender. Now there is a lot we have to know about non QM mortgage lenders. Here are some considerations we should take into keen interest if we are ever interested in venturing into non QM mortgaging.
Who Are non QM Mortgage Lenders
Talk about non-salaried employment and the need to have a residential mortgage, we see the need to have agencies that can offer loans and mortgages on a non-qualified basis to favor those in the position of self-employment, business and entrepreneurship, gig business holders, and even retirees. The processes and documentation used to acquire qualified mortgage loans might be unavailable to the mentioned groups and that is why we have private and cooperate non QM mortgage lenders who are there to offer such devices.
Away from the conventional loaning methods, the agencies associated with non QM mortgaging have alternative methods of verifying income such as Bak statements and liquid assets. The result is therefore offering favorable rates for the mortgage, unlike the conventional loaning methods. Several agencies offer this type of mortgage and their presence has been an advantage to non-salaried entities. However, over the past decade, the non QM has been on the low and the business seemed to have been associated with some fraud extent hence it was quite unpreferred. During the covid 19 periods, the non QM enterprises seemed to be even more challenged but it is coming up with time.
What Are the Types of non QM Mortgage Programs?
There are a lot of types of non QM mortgage programs that are accessible to any interested borrower. However, we are going to look into a few main types around the US market.
- Bank statement loans
- Mortgage without tax returns
- Asset depletion returns
- High DTI loans
- Mortgages under LLCs
- Super jumbo mortgage
- Interest-only mortgages
The above can be easily accessed through any certified non QM mortgage lender and they can be offered on varied termed conditions.
Main non QM Lenders
There are very many different non QM lenders for mortgages around the US and the market is full. What they offer is often a variety of guidelines before one can access the non QM mortgage. This is possible in the sense that some of the non QM lenders can offer programs others can offer. Now here are the top outstanding non QM mortgage lender over the past few years;
- The Carrington mortgage services
- The First national bank of America
- The Axos bank
- Citadel servicing
There are so many others but these are the Mina ones that have been known for non QM mortgaging for the past few years. They have offered mortgage services for a long time and it has often worked out for a lot of entrepreneurs and other non-salaried business borrowers for a long time.
They offer almost similar services but the terms and conditions may differ according to the rules and guidelines of the related loaning and banking agency.
When Do We Consider the non QM Mortgage Lenders?
The terms and conditions for mortgaging in some of the banking agencies might be so tough and consequently hard to meet. Therefore, the times might call for an alternative mortgaging method. It is simply because sometimes the qualified basis might lock out some individuals, especially those running on non-salaried entities.
The best way is therefore to go for a non QM mortgage. Here are a few scenarios that call for non QM mortgaging.
1.luxury home financing
The non QM lenders can be of very good use when it comes to people who need luxury housing. The main reason is that the amounts required can sometimes exceed the required amount. It, therefore, becomes important for the luxury home financing to be loaned on a non QM basis to bypass the requirements.
2. If you lack a two-year work history
Many QM based mortgaging agencies will often demand a two-year work history. It is therefore an advantage to those who lack it to go for the non QM mortgaging. They do not require this in many cases.
3. Foreign nationals
It might be so tiresome to go through the bureaucracies that are associated with mortgaging when one is of foreign nationality. Many of them are excluded on the side of non QM mortgaging. Therefore foreign Nationals would better go for the non QM mortgages in the first place.
You could also read about hard money loan interest rates.
Non QM Mortgage Lenders – Conclusion
There is always so much to talk about when it comes to loan and mortgage terms. However, the terms are easy and so much less important to some entities that offer mortgaging services on a non QM basis.
We have gone through some of the most important information concerning the non QM mortgage lenders. It is, therefore, easier to go for them while we know so much about them already.
One thing we should however be so keen about when choosing a lender is the certification and always keep in mind that not all the non QM lenders have the same terms and conditions, the best option is, therefore, to review a number of them before findings one that is best for the mortgage we need.