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What is the minimum loan amount on Non-QM Loans
What is the minimum loan amount i can get approved for on non-QM loans? What is the minimum loan amount on bank statement mortgage loans? What is the minimum loan amount on DSCR LOANS?
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2 Replies
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The lesser sum lent for a non qualified mortgage (Non-QM) loan, bank statement loan, as well as debt service coverage ratio (DSCR) loans differ according to the individual non qualified mortgage bank and the particular loan program in question. The following outlines what I have gathered:
1. Non-QM Loans:
Minimum Loan Amount: Often, it is around $100,000.
For instance: Non-QM Mortgage Lenders has non-QM loans extending to $100,000 as their sole non-qualifying amount.
2. Bank Statement Mortgage Loans:
Minimum Loan Amount: Generally not lower than $100,000.
For instance: Preferred Mortgage Rates provides bank statement loans which also cannot go lower than $100,000.
3. DSCR Loans:
Minimum Loan Amount: It is at the discretion of each lender and usually ranges between $100,000 and $175,000.
For example:
GCA Mortgage Group makes available DSCR loans and their minimum ad qualifying amount stands at $100,000.
For the DSCR Loan program, the North American Savings Bank (NASB) set the minimum loan amout at $175,000.
The amounts discussed are often used as markers, which means the lower limits may exceed these values. As stated before, locations of properties, policies set by the lender, and many more factors may also end up impacting these numbers greatly. To form a more precise figure aligned to your set finances and borrowing expectations, one must make contact with the lenders directly.
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Below are some specific pointers in regard to the minimum loan amounts for specific types of non-qualified mortgage (non-QM) loans:
Non-QM Loans:
General Minimum: These loans have a broad range of different products that go outside the usual conforming loan boundaries, thus, most, if not all of the lenders do not have any set minimum loan amount. However, perhaps there could be an overarching minimum of $100,000 – $150,000, but this figure can fluctuate based on the lender’s rules, the type of non-QM loan, and even the region in which they operate.
Bank Statement Mortgage Loans:
Minimum Amount: Self-employed individuals often utilize these bank statement loans, hence, it can be predicted that the minimum loan amount is likely similar to non-QM loans of roughly $100,000 minimum. There are, however, lenders who may set the bar a little higher to $150,000 – $200,000, which are higher thresholds as they bring more risk and more documentation demands.
DSCR (Debt Service Coverage Ratio) Loans:
Minimum Amount: Typically, these loans are utilized on investment properties, where the income from the property is utilized for the loan amount instead of the person’s income. Here, the usual minimum loan amount is generally the same as other forms, thus, can be around $100,000; however, given the commercial aspect of these loans, many lenders may increase the minimum amount even further, thus, approximately $200,000 or above based on the assumption that these loans are meant for large scale investments.
Advice:
These numbers are rough estimates. Lenders may have different limits depending upon their risk evaluation system, their target audience, and the market conditions.
It is always best to contact lenders or mortgage brokers personally to obtain the most accurate and relevant information since these figures may fluctuate.
Other factors like credit score, property type, LTV ratio, and the borrower’s total financial situation may also influence the minimum loan amount.
If you consider any of the loan types mentioned, consulting a mortgage expert is recommended, as they will customize their advice according to your finances and the details of their available loan products.