They typically don’t need tax returns, W-2s, or income verification. Less Formal Documentation: Non-QM lenders also have flexible documentation requirements.Lenient Credit Requirements: One of the major benefits of non-QM loans is that borrowers with low credit scores (even below 500) get the opportunity to pursue their dream of home ownership.Weighing the pros and cons will help you make an informed decision. Pros and Cons of Non-QM LoansĪs with any other loan product, a non-QM mortgage has downsides and upsides. In fact, the lending process is similar to that of qualified mortgages except for the documentation required. Today’s non-QM loans have lending guidelines. Unfortunately, the Great Recession housing crisis resulted in the misconception that non-QM loans are bad. If you’re wondering whether non-QM loans are safe, the good news is that they are not like subprime mortgages that existed a decade ago. Borrowers with less-than-stellar credit.Should You Get a Non-QM Loan?Ī non-QM loan has flexible terms, lenient credit requirements, and requires less documentation, making it a great mortgage option for: It’s therefore easy to qualify for non-QM mortgages. This is because they don’t meet the federal government and CFPB guidelines for qualified mortgages. Non-QM loans, on the other hand, have lenient lending requirements compared to conventional loans. It also means that if you have a low credit score, getting approved for a traditional loan might be difficult. This loan type has stricter lending requirements than non-QM loans and government-backed loans like FHA loans. Instead, they are available through private lenders, such as banks, credit unions, and mortgage companies. Conventional LoansĬonventional loans are mortgages not backed by the federal government. It is a financing solution designed to help a particular group of borrowers to achieve their dream of homeownership. This is where a non-QM loan can be helpful. Real estate investors, foreign nationals, self-employed individuals, and credit-challenged people may find it difficult to qualify for a conventional loan. They are exclusively designed for home buyers who can’t conform to the stringent requirements for a qualified mortgage. Seasoning: 1 day from ch.A non-qualified mortgage, in short, a non-QM loan, is a loan product that doesn’t conform with the lending guidelines set by CFPB.Documentation-Full Doc (2-Yrs W-2/1099 or 2-Yrs Tax Returns) & Bank Statements, AssetĮligible Property Types Include: One Unit Single Family Residences (Attached and Detached), PUDs (Attached and Detached), Condos (Low and High Rise), Site Condo, Townhouse, 2-4 Unit Properties, Modular Homes, Hobby Farms, and Mixed-Use Properties.Credit grades for 24 Months from housing event to no seasoning required from housing event.Consumer credit challenges with consistent housing history.
NON QM LENDER PLUS
Carrington Flexible Advantage Plus Program MatrixĬARRINGTON FLEXIBLE ADVANTAGE SM For borrowers who have recent housing events and FICO down to 550 Ideal for:.1×30 mortgage lates in the last 12 months.Up to 80% cash-out (full doc & 620+ FICO).
NON QM LENDER FULL
620 FICO borrowers who need cash-out up to 75% (see matrix for details).Borrowers who are on the road to repairing their credit.Bank Statement Calculation Service (login required)ĬARRINGTON FLEXIBLE ADVANTAGE SM PLUS For borrowers who have recently re-established credit scores 620 and above.Non-QM Underwriting Guidelines (login required).Carrington Prime Advantage Program Matrix.1099, P&L, 12 or 24-month bank statements (personal or business), asset depletion, W2 or full-docĮligible Property Types Include SFR, PUD, Townhome, Condominium, 2 Unit, Modular and Mixed-Use Properties.Self-employed and alternative documentation borrowers including.Loans that don’t fit government and conventional guidelines.Broker Marketing Flyers (brokerIQ login required)ĬARRINGTON PRIME ADVANTAGE SM 660 Min FICO - For borrowers who just miss qualifying for Agency or Jumbo financing.Bank Statement Calculation Service Form.