Among main mortgage products, only applications of “non-conforming” increased on a quarterly basis in the third quarter of 2018, according to a new ranking and analysis by “Inside Non-conforming Markets.” The sector includes non-qualified mortgages, non-prime loans, mortgages with alternative documentation and any other non-jumbo mortgages not eligible for delivery to Fannie Mae, Freddie Mac or Ginnie Mae.
Origination of expanded-credit loans rose 10.5% in the third quarter. In the first three quarters of 2018, expanded-credit volume was up by 22.7% from a year ago.
“The entire mortgage industry has come to recognize the potential and significance of non-QM,” said one of the most prominent originators of non-QMs. This sector rebounded incredibly well and has become a popular method of financing borrowers that don’t quite fit the traditional box due to Debt-to-Income ratios, inability to provide documentation, credit issues, or other restrictions, but are still safe credit risks. Self-Employed and Salaried borrowers both can benefit from this wide array of products.
Here’s a sample of some of the easy options available through Pacific Home Loans that permit borrowers to qualify without requiring Income Tax Returns:
· Qualify on Assets: Borrowers may qualify by having assets greater than the loan amount after the close of escrow
· Qualify on Cash Flow: using deposits on Bank Statements instead of tax returns
· Qualify on Rental Income: of Subject Property when buying or refinancing
· Qualify based on a Profit & Loss Statement
Features: (May vary based on credit scores and other factors)
· Up To 90% of Value or Purchase Price
· Multiple Options – Fixed & Adjustable
· Interest-Only Available
· Higher Debt-To-Income Ratios
· Loan Amounts to $3 million
Give us a call to learn how you or your clients may benefit from the vast array of creative solutions to financing their home purchase or refinance.