Non-Qualified Mortgage Loans In Alaska

Homebuyers in Alaska have plenty of options when purchasing a house. Even when financing a home purchase, many mortgage options are available. From conventional conforming loans to government-guaranteed loans and everything in between, Alaskan homebuyers can find a home loan program that meets their specific requirements.

What is a Non-QM Loan?

A Non-Qualified Mortgage (Non-QM) Loan in Alaska is a form of home loan that does not comply with the Consumer Financial Protection Bureau’s (CFPB) existing standards on Qualified Mortgages (QMs). Non-QM loans, unlike QM loans, may not require proof of your ability to repay and may be based on alternate income verification methods, such as utilizing your assets as income. Non-QM loans in Alaska provide flexibility that may suit borrowers with unconventional financial profiles.

Advantages of Non-QM Loans

• Flexibility

Non-qualified mortgage (Non-QM) loans provide enhanced underwriting criteria, rendering them available to self-employed individuals or individuals with unpredictable income sources.

• Alternative Income Documentation

It is possible to meet the eligibility criteria by providing bank statements or demonstrating possession of assets instead of relying solely on conventional income documentation.

• Higher Debt-to-Income Ratios

Certain Non-QM loans allow borrowers higher debt-to-income ratios, granting them greater flexibility in meeting the qualification criteria.

• A Diverse Range of Programs

Non-qualified mortgage (Non-QM) loans may possess distinctive characteristics, such as the provision for interest-only payments or higher loan limits, which are not commonly found in conventional or Qualified Mortgages.

Types of Non-QM Loans

There are several types of Non-Qualified Mortgage loans. The most common among them are the following:

• Stated Income, Verified Assets (SIVA)

These loans necessitate borrowers to declare their assets while not necessarily mandating the submission of income verification through conventional methods like W-2 forms or pay stubs.

• No Income, Verified Assets (SIVA)

No Income, Verified Assets (NIVA) mortgages are a form of mortgage in which the lender does not evaluate the borrower’s income but does check their assets. These are a subset of no-income-verification mortgages, as opposed to No-Income, No-Asset (NINA) loans, which do not assess income and do not require asset verification.

• Interest-Only Loans

An interest-only loan is one in which the borrower is required to pay just the interest costs for a set period of time, usually at the start of the loan term. During this time, the primary balance remains unaltered. Following the conclusion of the interest-only term, the borrower begins to pay off both the principal and the interest, either through a lump-sum payment or by switching to a conventional amortizing loan.

• Foreign National Loans

A foreign national loan is a customized mortgage product designed to assist non-residents of the United States in financing real estate transactions in the country. Foreign national loans have different qualification standards than traditional mortgage loans. These loans are designed expressly to satisfy the financial needs and obstacles that foreign nationals may have while attempting to get a house loan in a country where they do not have citizenship.

• Asset-Depletion Loans

An asset-depletion loan, also called an asset-dissipation loan, is a type of credit that lets people get loans based on their liquid assets instead of their income. This type of loan is usually for people with plenty of assets but a low income, making it hard to get a regular mortgage based on income.

• Fix-and-Flip Loans

A fix-and-flip loan is short-term financing meant primarily for real estate investors. These loans are utilized to buy, refurbish, and resell a home for a profit. Unlike regular mortgage loans, fix-and-flip loans are not meant for long-term property ownership.

• DSCR Loans

A DSCR loan (Debt Service Coverage Ratio) is a mortgage product commonly utilized for real estate investments. Unlike typical loans, which are concerned with the borrower’s income and credit score, a DSCR loan is concerned with the property’s ability to create enough income to repay loan obligations.

Apply for an Alaska Non-Qualified Mortgage Loan

Capital Home Mortgage is a leading Alaska mortgage lender and servicer offering a wide range of mortgage solutions. Our mortgage professionals have significant experience and can help you choose the best lending package for your financial situation and needs. Our Loan Officers give consumers the knowledge, assistance, and adaptability to choose the best mortgage package because each loan is unique. 

Call (907) 531-5048 to speak with our Alaska Home Loan Specialist about a Non-QM loan.