Non-QM loans do not meet the typical standards for qualified mortgages. They use non-traditional methods of income verification to help borrowers get approved for a home loan.
Houston, Texas, May 11, 2021, Matador Lending wants the public to know that they continue to offer Non-Qualified Mortgage (Non-QM) Loans. People who have a compromised income history or major credit problems in their past, have a more difficult time being approved for a qualified mortgage, or QM.
A Non-QM Loan has its own set of criteria, which is easier to satisfy. This makes home buying available to a wider group of people, including hard-to-place borrowers.
Non-QM lenders offer more loan options for:
- Borrowers Who Are Self-Employed: Instead of tax returns, non-QM lenders offer bank statement mortgage loans. With 12 to 24 months’ worth of personal or business statements, the lender evaluates deposits to determine qualifying income.
- Borrowers With High Net-Worth: Some lenders offer asset depletion programs. By dividing total cash balance by a lender-chosen time period, the asset is counted as income. For example, a $200,000 savings balance may be converted into $833.33 of extra monthly qualifying income with a typical 20-year asset depletion loan term.
- Borrowers Investing In Multiple Rental Units: Non-QM loans come in handy if building a portfolio of investment properties but already own 10 mortgaged properties — the limit for most conventional lenders. Some lenders also offer debt-service coverage ratio loans for real estate investors. If the rent on the new home covers the monthly payment, you will not need to verify any other income to qualify.
- Borrowers With Recent Bad Credit: They may qualify for a non-QM loan one day after completing a bankruptcy or foreclosure. For standard loan programs, one typically needs to wait two to seven years after a significant credit event.
- Borrowers Who Are Foreign Nationals: A foreign national is a citizen of another country who lives in the U.S. for brief periods for work or vacation. Non-QM loans for foreign nationals may not require proof of U.S. income, credit, or a Social Security number.
- Borrowers Who Want An Interest-Only Payment Option: If one’s income is sporadic, an interest-only loan gives you a lower payment option during times of the year when earning less. Qualified mortgage rules prohibit them, and with good reason: But the payment could increase after the interest-only period ends, making the loan harder to repay.
During a recent press event, The president of Matador Lending, Apurva Sanghavi, made these comments, “We provide the right loan, for every financial profile. How do you know what mortgage loan is the best for your unique situation? Our team is built to review 100’s mortgage options across over 40 lenders that match you with the financing that you will be comfortable with now and ensure you have the right loan to fit your financial needs. Our loan officers have over 30 years of combined experience helping homeowners achieve their lending needs.”
For further information, visit: https://www.matadorlending.com
Attn: Media Relations
3033 Chimney Rock #605