Non-QM Residential Loans
At IGR Mortgage Services we provide Non-Qualified Mortgage Loans for real estate investors. Banks,conventional lenders and FHA-VA lenders make Qualified Mortgage Loans that comply with Fannie Mae, Freddie Mac and FHA-Va guidelines. A Non-QM Loan is any loan that does not comply with these guidelines.
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Non-QM Loan Overview
In 2014, the CFPB (Consumer Financial Protection Bureau) created the Qualified Mortgage Rule. This rule created guidelines for lenders which required them to verify the borrower’s ability to repay the mortgage, and to provide mortgage products that reduced risk for both the borrower and lender.
Today, any mortgage that does not adhere to the requirements for a qualified mortgage is considered to be a Non-QM loan. Non-QM loans are not insured, guaranteed or backed by FHA, VA, Fannie Mae or Freddie Mac. A Non-QM loan is for individuals who cannot meet the basic requirements needed for a qualified mortgage.
Non-QM loans will have higher fees and interest rates than a qualified mortgage and terms often have interest only or balloon payments. Non-QM loans are for borrowers who have a solid income and credit history, but are looking for alternative mortgage solutions other than what the local bank may offer. IGR Mortgage Services also offers Non-QM Loans to borrowers with low FICO scores and some derogatory credit history when mitigating factors are available.
Non-QM Loan Features:
Residential properties from single-family to 4 units. Other:
- Loan Amounts from $100K to $5M
- Loan-To-Value Ratios to 85%
- Interest Rates 6.99% – 10.99%
- Loan Programs 5/1, 7/1 & 30 Year Fixed
- 620 + Credit Score
- Stated Income/No Doc Programs
- Investor No Ratio Program
- Alternative qualifications based on income, assets & employment
- Loans to Individules and Entities
Why You Should Use A Non-QM Loan
Alternative Income Documentation: Especially for self-employed borrowers that often have a difficult time documenting income. With flexible programs including Stated Income and No Doc qualifying self-employed borrowers can obtain financing that otherwise would be unavailable.
Quick Funding: With a Non-QM Loan provided by IGR Morgage Services, real estate investors can have funds within 12 to 24 days in most cases. That’s the advantage of flexible guidelines, underwriting, and a stream-lined loan process with Non-QM Loans.
A Good Alternative to Hard Money: Historically real estate investors would need to turn to a hard money loan if they were unable to qualify for conventionsl financing. With a Non-QM Loan the investor can save a bundle in fees and rates over the term of the loan compared to hard money.
Avoid Waiting Period Requirements: Conventional loans and FHA-VA loans have waiting period requirements for borrowers coming out of bankruptcy, foreclosure, short sales or deed in lieu of foreclosure. Borrowers can qualify for Non-QM Loans one day after these events.
Many Other Reasons: No maximum loan limits; No private mortgage insurance; late payments in the past 12 months allowed; No Doc loans for self-employed borrowers; underwriting exceptions can be made on Non-QM Loans on a case by case basis.
Eligible Properties For Non-QM Loans
Detached Residential
Detached single-family houses, duplexes, tri-plexes and four-plexes.
Attached Single-Family
Attached single-family rowhouses, including condominiums.
Manufactured Homes
Manufactured homes, mobile homes and P.U.D.’s
If you have a question about a Non-QM Loan on a qualifying residential property, give us a call to discuss your situation. One ten-minute call may just be the ticket to a fast solution to meet your financing needs!
IGR Mortgage Services has been providing investors with hard money loan options for over 30 years. We offer Fast & Affordable financing. for investors of every experience level. Call today to or send us your loan scenario to review!