Capital New York Home Advantage is proud to provide an array of Non-QM mortgage products that help to assess your reliability as a borrower using a wide range of factors. These can encompass bank statements, rental income, liquid assets, and credit history.
For both budding and seasoned real estate investors or first-time homebuyers, our Non-QM mortgage products offer a simpler path to financing your property investment.
Non-QM Mortgage Products We Offer
Bank Statement Loans
We only require a bank statement for this Non-QM loan type. Self-employed applicants can qualify with a minimum of twelve months’ bank statements.
Asset-Based Loans
Using assets you currently possess, including checking and saving accounts, investment accounts, or money market accounts, you can secure a loan with our Asset-Based Loans.
DSCR Loans
Debt Service Coverage Ratio (DSCR) Loans enable borrowers to get financing based on the cash flow produced by a rental or investment property.
Non-QM Loans Explained
A Non-QM loan, or a non-qualified mortgage, is a unique type of mortgage loan that allows you to qualify through alternative approaches, in contrast to traditional income verification required for most loans. Non-QM loans broaden the reach of real estate investment opportunities to a larger group thanks to the flexible qualification requirements.
Non-QM vs. Qualified Mortgage
Non-QM loans present an alternative to qualified mortgage (QM) loans. A Non-QM loan does not have to meet the federal government’s and Consumer Financial Protection Bureau’s (CFPB) guidelines for qualified mortgages.
Qualified Mortgage Requirements
The CFPB provides a set of rules for QM loans to create more secure borrowing requirements, aimed at protecting borrowers from entering loan agreements they may struggle to pay back. But, if you are unable to meet the conditions needed to demonstrate your repayment ability, you might lose out on the investment opportunity or home of your dreams.
Non-QM Loan Benefits & Risks
Like all loans, Non-QM mortgages have both benefits and risks. These loans offer a balance for borrowers who might otherwise have no options or be burdened with prohibitively high-interest rates that significantly increase the loan’s cost.
Non-QM Mortgage Benefits
- Greater underwriting flexibility
- No personal income calculations needed
- No job history required (in certain cases)
- As low as 10% down payment needed
- No reserves required (in some cases)
- Credit scores as low as 620 accepted (580 w/ compensating factors)
- Low debt-service-coverage ratio (DSCR) on investment properties
- Recognition of rental income (including Airbnb & VRBO)
Non-QM Mortgage Risks
The main risk of a Non-QM mortgage is the inability to repay the loan should your financial situation change significantly. However, this is a risk associated with any loan type.
Applying for a Non-QM Loan
Reach out to us today to determine your eligibility for a loan! Our Non-QM loan products cater to a wide range of borrowers.
Who Should Consider a Non-QM Mortgage?
If you’ve been denied a traditional QM loan, a Non-QM loan might be your next step. It could be the right choice for you if you’re a self-employed individual, real estate investor, retiree interested in purchasing a second home, a small to midsize business owner, or a borrower who has experienced a recent credit event such as bankruptcy, short sale, or foreclosure.
Our expert loan officers can assist in determining if a Non-QM mortgage is the best solution for you.
Selecting a Trusted Lender
Not all Non-QM mortgage lenders offer the same terms. In such a substantial investment, you want to ensure that your lender has your best interests in mind.