Non-QM Loans

pexels-pixabay-259588 (1)There are many perks that come along with being self-employed, such as flexible schedules and casual dress codes. That said, another one of the many benefits- tax writeoffs- can make getting a mortgage difficult. Although it may be difficult for other companies to complete an income verification for self-employed individuals, Parkside Mortgage, LLC is able to complete this step without any income documentation, thanks to a loan option called non-qm loans.

This loan program is also a good option for individuals who have had recent credit events such as bankruptcies, foreclosures, late payments, collections, short sales, et cetera. If you are seeking a low credit mortgage while you are your way to a prime loan, Parkside Mortgage, LLC can help you.

No matter what your unique financial situation is, Parkside Mortgage, LLC is able to offer an easy and affordable non-qm loan solution for borrowers throughout Louisville KY, Prospect KY, Kentuckiana and the entire state of Kentucky.

What are Non-QM Loans?

Non-qm loans refer to loans that do not fit into the government lending standards known as prime loans, agency loans, or A-paper lending and defined as qualified mortgages, and are often known as fixer loans or temporary loans. They are intended to offer borrowers an alternative mortgage solution, particularly if they are not able to purchase a home through a traditional mortgage. Non-prime loans also have no pre-payment penalty option. For borrowers with low credit, non-prime loans can be used as a vehicle to establish new mortgage credit.

Although non-qm loans are most associated with those with credit events, they are also a solution for borrowers with complex finances. If you are unable to fully document your income, whether because you are self-employed, or recently started a new line of work, you will need a solution that does not require in depth income verification.

We offer a Bank Statement Program, allowing you to use a bank statement deposit to document your income, with no need for tax returns. This program also requires no income documentation for loans on investment properties. Contact us at 502-242-5073 or fill out the form on this page for more information.

Benefits of Non-QM Loans

Non-qm loans are intended for borrowers who need a little help before qualifying for prime loans. This may include borrowers who have had credit events such as bankruptcies, short sales or late payments. They are also an excellent option for self-employed borrowers, as bank statements can be used to document income, with no tax returns needed. Non-prime loans have both fixed and adjustable rates that can fit your unique financial situation.

There are a variety of property types that are considered, including owner-occupied, single family homes, second homes, investment properties, SFRs, townhomes, condos (including some non-warrantable condos), and multiunit or multifamily homes.

For the most part, non-qm loans work in the same manner as agency loans. Lenders will look at the same three factors:

  1. Capacity to repay
  2. Credit history
  3. Value of the home

However, one of the most obvious benefits of non-qm loans is that they have much more flexible credit requirements than agency loans. In some cases, you can acquire a home loan with a credit score as low as 500 FICO- even for some jumbo loans. Additionally, a higher debt-to-income (DTI) ratio is considered, sometimes up to 50%. Parkside Mortgage, LLC often offers up to 85% loan-to-value (LTV).

If you are seeking to repair your credit, there are options available that can lower your interest rates over time as you meet certain repayment conditions. This can be used to establish new credit and help repair your credit score.

Get Pre-Approved for a Non-QM Loan

If you are seeking a non-traditional loan in Louisville KY, Prospect KY, Kentuckiana, or anywhere in Kentucky, contact Parkside Mortgage, LLC at 502-242-5073, or simply fill out the form on this page today! We are also able to work with borrowers in Indiana and Tennessee.