Tagged: ALTERNATIVE FINANCING
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ALTERNATIVE FINANCING
Posted by Randy on August 15, 2024 at 9:48 pmWhere/who can I turn to for flexible/lenient mortgage financing?
George replied 2 months, 3 weeks ago 2 Members · 1 Reply -
1 Reply
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Besides government-backed loans and conventional loans, there are non-QM loans. Non-QM loans are alternative mortgage loans that non-traditional income is allowed. There are dozens types of non-QM loans. For flexible or lenient mortgage financing, consider these options:
- Non-QM (Non-Qualified Mortgage) Lenders: They offer flexible underwriting for those with unique income situations, like self-employed borrowers.
- Credit Unions: Often more flexible with terms and credit requirements.
- Private Lenders/Hard Money Lenders: Provide financing based on the property’s value rather than your credit score.
- FHA Loans: Government-backed loans with lenient credit requirements.
Consulting with a mortgage broker can help you find the best fit for your situation. The following are the types of non-QM loan programs in today’s market. In today’s marketplace, various Non-QM loan programs cater to residential, business, and commercial needs. Here are the key types:
Residential Non-QM Loans:
- P and L Statement Only Loans
- No-Doc Loans
- 1099-Income Only Mortgage Loans
- Bank Statement Loans: For self-employed borrowers using bank deposits as income.
- Asset-Based Loans: Qualify based on liquid assets.
- Interest-Only Loans: Lower monthly payments with interest-only periods.
- Jumbo Loans: For high-value properties without strict QM limits.
- DSCR Loans: Debt Service Coverage Ratio loans for investment properties.
Business/Commercial Non-QM Loans:
- 100% Unsecured Business Funding Loans
- Stated Income Loans: Less documentation, focusing on property value and borrower experience.
- Bridge Loans: Short-term financing for property acquisition or renovation.
- Hard Money Loans: High-interest loans based on collateral rather than credit.
- Fix-and-Flip Loans: Short-term loans for property renovation and resale.
- Commercial Real Estate Loans: For properties like office buildings, retail spaces, or multifamily units with flexible terms.
These Non-QM programs provide flexible options for borrowers who don’t meet traditional lending criteria.