
The U.S. mortgage system might be the envy of the world, but there are some gaps – particularly when it comes to extending home loans to borrowers who don’t fit traditional underwriting profiles. Creditworthy borrowers can find themselves locked out simply because they have unpredictable income, or because they offset taxable income with significant expenses on their tax returns.
For you as a loan officer, that spells opportunity: There’s a whole population of affluent borrowers who need mortgages but don’t fit the narrow parameters of conventional loans. Enter non-qualified mortgages, or non-QM loans. This brand of mortgage is made up of various types of loans that don’t meet the lending requirements created by the Consumer Financial Protection Bureau in the aftermath of the global financial crisis.
How do borrowers qualify for non-QM loans?
A non-QM loan is a type of mortgage that lets the lender analyze the borrower’s qualifications based on alternative methods. Borrowers could qualify based on their bank statement, or on their assets, or on the income produced by the underlying property.
As the U.S. economy and labor force continue to adjust to post-pandemic life, more borrowers apply for loans with more diverse financial profiles. Given that new reality, underwriting flexibility has grown more crucial. If you learn to navigate the more flexible requirements of non-QM loans, these products can open up your business to a broader range of borrowers.
LENDSURE’S NON-QM LOAN PRODUCTS
To meet the unique needs of your borrowers – whether they’re self-employed or investors – LendSure has a variety of Non-QM loan programs. If your client has applied for a QM loan and been denied, consider one of our non-QM loan offerings.
- Asset Depletion/Asset Qualifier: A borrower might have plenty of assets but little or no income. This product is designed for retirees or high-net-worth individuals who can’t qualify based on income, but who have plenty of assets. LendSure underwrites based on borrowers’ liquid assets.
- BOOST Bridge Loan: For borrowers who want to jump at a purchase opportunity before they can sell their current home, LendSure’s bridge program lets borrowers use their existing home’s equity for a down payment on the next property.
- Fix and Flip Loan: Designed for real estate investors, this program is geared toward buying, renovating, and then quickly selling.
- Jumbo Loans: Home prices keep setting new records, and some borrowers need loan amounts above conforming limits.
- DSCR Investor Cash Flow Loans: This investor product is underwritten based not on the borrower’s income but on the underlying property’s cash flow. LendSure offers DSCR loans for 1- to 10-unit investment properties.
- Bank Statement Loans: Borrowers who don’t have W-2 income can face challenges when qualifying. These loans, tailored for self-employed borrowers, qualify your clients using months of bank statements.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line. Did you like our guide to Non-QM loans? Check out another blog on the subject.