Alabama Non Qualified Mortgage Lender
Understanding Non-QM Loans
Non-QM (Non-Qualified Mortgage) loans are tailored for borrowers who don’t meet the strict guidelines set by the Consumer Financial Protection Bureau (CFPB) for traditional Qualified Mortgages. These loans are ideal for individuals with unique financial circumstances—such as self-employed borrowers, those with recent credit challenges, real estate investors, or foreign nationals.
Types of Non-QM Loans Available in Alabama
Lenders in Alabama offer a range of Non-QM loan options, including:
Bank Statement Loans – Use bank deposits instead of tax returns to verify income
DSCR Loans – For real estate investors, based on property cash flow
Asset Qualifier Loans – Use assets rather than income for qualification
1099 Loans – Designed for independent contractors
Foreign National Loans – For non-residents looking to invest or purchase in the U.S.
P&L Loans – Use profit and loss statements for income verification
Key Features and Requirements
Non-QM loans typically offer more flexible income documentation, often accepting bank statements, assets, or P&L statements in place of W-2s and tax returns. While some programs accept lower credit scores, they may require a larger down payment. Interest rates and fees may be higher compared to traditional loans due to the added risk, and some options may include interest-only payments.
What to Keep in Mind
For borrowers who don’t fit into the traditional lending mold, Non-QM loans can be a practical solution. However, it’s essential to carefully review the terms, costs, and long-term impact. Working with a lender experienced in Non-QM products can help ensure you find a loan that fits your unique financial profile.
Your Path to Home Ownership in Alabama Starts Here!
At Capital Home Mortgage Alabama, we understand that your journey to homeownership doesn’t always fit the traditional mold. That’s why we specialize in Non-Qualified (Non-QM) mortgage solutions tailored to Alabama’s diverse homebuyers and property investors.
We Say “Yes” When Others Say “No”
Are you self-employed with complex income documentation? A foreign national investing in Alabama real estate? Or perhaps you’re looking to qualify based on your substantial assets rather than traditional income? Our innovative Non-QM loan programs are designed specifically for situations like yours.
Expert Guidance Every Step of the Way
Navigating non-traditional mortgages requires experienced partners who understand your unique circumstances. Our dedicated mortgage specialists work closely with you to:
- Craft personalized loan solutions that align with your financial situation;
- Explore competitive Non-QM rates and flexible terms
- Streamline the approval process with clear communication and support.
Experience the Capital Home Mortgage Difference
With years of specialized experience in Alabama’s Non-QM market, we’ve helped countless borrowers achieve their real estate goals through alternative financing solutions. Our commitment to exceptional service and deep understanding of non-traditional mortgages makes us Alabama’s trusted choice for Non-QM loans.
Ready to explore your options? Contact our Alabama Non-QM Mortgage Specialists today: (205) 352-1030. Turn your homeownership dreams into reality with a lending partner who understands your unique needs.
Alabama non Qualified Home Loans
What is a Alabama Non-Qualified Mortgage Loan?
An Alabama Non-Qualified Mortgage is a type of home loan that doesn’t meet the standard requirements set by the Consumer Financial Protection Bureau (CFPB) for “Qualified Mortgages.” While this might sound concerning, Non-QM loans are completely legal and serve an important purpose in the mortgage market.
Key features of Alabama Non-QM loans:
- More flexible income verification methods
- Can use bank statements instead of traditional W-2s
- May consider investment income or asset depletion
- Better suited for self-employed borrowers or those with irregular income
- Different qualification criteria
- May allow higher debt-to-income ratios than conventional loans
- Can often use alternative credit history verification
- More flexible when considering recent credit events
- Common uses:
- Self-employed professionals
- Real estate investors
- Foreign nationals buying property in Alabama
- High-net-worth individuals who prefer asset-based qualification
- Borrowers with recent credit events but substantial down payments
The main trade-off is that Non-QM loans typically:
- Have higher interest rates than conventional loans
- Usually require larger down payments
- May have stricter reserve requirements
- Could have different term structures than traditional mortgages
It’s important to note that while Non-QM loans don’t meet the CFPB’s standard requirements, they still require proper documentation and must comply with the ability-to-repay rules. They’re simply designed to serve borrowers who don’t fit into the conventional lending box.
Alabama non Qualified Home Mortgage Loans
A DSCR loan, or debt service coverage ratio loan, is a type of mortgage loan used for purchasing short-term or long-term rental investment properties. With a DSCR loan, borrowers can qualify for a mortgage based on a property’s rental analysis. No personal income or employment information is required to qualify. Debt service coverage ratio or DSCR is a measurement of a property’s expected cash flow to determine ability to repay a mortgage loan. It is calculated by dividing the borrower’s net operating income by their debt obligations, including the debt payment.
- Purchase, Rate & Term, Cash-Out
- Minimum Credit 660
- Maximum LTV 85% (Dependent on Property Type / Credit Score)
- Qualify based on Property Income
- DSCR < 1.0 and No DSCR Options
- No Employment or Income Information Required
- LLC’s Allowed
- Interest Only Allowed
- No Limit on Total Properties
- Short Term Rentals Allowed
- Vacant Properties Eligible
- Non-Warrantable Condos Allowed
- No Condo Hotels
- Non-Permanent Residents Allowed
- Minimum Loan 100K
- Maximum Loan 3M
A bank statement loan is a type of mortgage that allows self-employed borrowers to verify their income based on their personal or business bank statements, rather than traditional methods like tax returns, W-2s, or paystubs. Bank statement loans are generally used by self-employed individuals, small business owners, or independent contractors. Borrowers do not have to own 100% of the business. Our Bank Statement program provides a loan solution to help underserved credit-worthy self-employed borrowers who otherwise would not qualify for a home loan.
- Purchase, Rate & Term, Cash-Out
- Primary, Secondary and Investment
- Minimum Credit 640
- Maximum LTV 90%
- 12 or 24 Months Business or Personal Bank Statements
- Most loans will be qualified on an expense factor of 50%
- Rates are 30-year fixed
- Interest Only Options
- Two Year Seasoning Foreclosures / Bankruptcy
- Minimum Loan 150K / Maximum Loan 3M
1-year and 2-year Profit & Loss Statement Home Loans tailored for self-employed individuals. These loans allow borrowers to use their business’s Profit & Loss (P&L) statement to qualify, bypassing traditional income verification
- Purchase, Rate & Term, Cash-Out
- Primary Residence Only
- No Employment, No Income, No DTI
- Minimum Credit 700
- Maximum LTV 75%
- 12 or 24 Months Business or Personal Bank Statements
- 2 Months Business Statements Supporting income
- Single Business Only
- Two Year Seasoning Foreclosures / Bankruptcy
- Minimum Loan 150K
- Maximum Loan 3M
A 1099 Home Loan is for underserved self-employed borrowers who are 1099 workers. Many freelancers, contractors, economy workers or other self-employed borrowers who file using W-9s cannot qualify for a mortgage under Agency guidelines. These borrowers can use 1099 earning statements in lieu of tax returns to qualify for a mortgage. The 1099 Income loan is an alternative loan solution that helps many self-employed 1099 earners achieve homeownership
- Purchase, Rate & Term, Cash-Out
- Primary, Secondary and Investment
- Minimum Credit 620
- Maximum LTV 90%
- No Tax Returns Required
- YTD Earnings Verified
- Single Employer Only
- Two Year Seasoning Foreclosures / Bankruptcy
- Interest Only Available
- Minimum Loan 150K / Maximum Loan 3M
Individual Tax Identification Number (ITIN) loans are for borrowers who do not have Social Security numbers. Borrowers with ITIN cards can qualify for a mortgage as long as they meet the eligibility requirements. ITIN loans are full doc non-QM mortgages offering flexibility for individuals residing in the United States.
- Purchase, Rate & Term, Cash-Out
- Primary Only
- Minimum Credit 640
- Maximum LTV 75%
- Up to 50% DTI
- Non Warrantable Condos Allowed
- One Year Seasoning Foreclosures
- Two Year Seasoning Bankruptcy
- Minimum Loan 125K
- Maximum Loan 2.5M
The Asset Qualifier loan program is for borrower’s to qualify using their liquid assets. No employment, income or DTI is required to justify ability-to-repay. Borrower to qualify based on required assets that meet seasoning requirements. Designed to help retirees, self-employed, and other borrowers with required seasoned assets to purchase or refinance.
- Purchase, Rate & Term, Cash-Out
- Primary Residence Only
- No Employment, No Income, No DTI
- Minimum Credit 700
- Maximum LTV 75%
- 12 or 24 Months Business or Personal Bank Statements
- Rates are 30-year fixed
- Interest Only Options
- All Assets Sourced and 6 Month Seasoned
- 500K Required in Post Closing Assets
- Five Year Seasoning Foreclosures / Bankruptcy
- Minimum Loan 250K / Maximum Loan 3M
Foreign National Home Loans are for individuals wanting to purchase or refinance property in the US, but reside outside of the country. This program is a DSRC program that requires a 1:1 debt service coverage ratio. No income and US credit required.
- Purchase, Rate & Term, Cash-Out
- Minimum Credit N/A
- Maximum LTV 70%
- Qualify based on Property Income
- DSCR 1.1
- LLC’s Allowed
- Interest Only Allowed
- 12 Months Reserves
- No Gifts Allowed
- No Limit on Total Properties
- Short Term Rentals Allowed
- Vacant Properties Eligible
- Must Reside outside US
- Must Have Valid Visa – B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2
- Minimum Loan 100K / Maximum Loan 1.5M
Alabama Mortgage Rates
Why Alabama is Choosing Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Competitive Rates & Fees
Direct Lender with Complete Mortgage Programs
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Customer Support Application to Final Payment
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Alabama Mortgage Programs
Alabama Home Purchase loans
Looking to Purchase an Alabama Home?
Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
- Primary, 2nd Home, Investment
- Competitive Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
Alabama Renovation Home Loans
Looking to Rehab an Alabama Home?
Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not a renovation loan? Purchase the Perfect Home and make it your own.
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
Alabama FHA Home loans
Great 1st Time Alabama Homebuyers
FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket. Call today to get started.
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
Alabama va Home Loans
100% Financing for Alabama Vets
Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
Alabama Conventional Home loans
Flexibility for Alabama Homebuyers
Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a loan officer.
- Primary, 2nd Home, Investment
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Terms
- Renovation Programs Available
Alabama Jumbo Home Loans
Alabama Non-Confirming Home Loans
Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today.
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
Alabama USDA Home loans
100% Rural Alabama Home Loans
USDA Loans are a great option for families wanting to live outside of the city. Call today to speak with a loan officer to discuss your personal loan options.
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
Alabama Native american Home Loans
Alabama Hud 184 Home Loans
HUD 184 Home Loans are solely for Native American and offer a variety of benefits. Call today to speak with a loan officer to find out more.
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
Alabama Manufactured Home loans
Great Alternative Alabama Housing
Manufactured Home Loans offer options to purchase an existing residence or build your dream home on your own land. Call today to speak to a Loan Officer.
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
Alabama Reverse Mortgage Loans
Your Alabama Home at Work
Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
Alabama Non QM Home loans
Making Alabama Mortgages Possible
Looking for Non Traditional Home Mortgage Loan? Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
Alabama One Time Close Home Loans
Build Your Alabama Dream Home
Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan. Call today to see how a OTC loan works.
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
Alabama Refinance Mortgage loans
Alabama Rate & Term Refinance
Refinancing can be a hard decision and may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor for details.
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
Alabama Cashout Mortgage Loans
Alabama Equity Mortgage Loans
Cash-Out Mortgage Loans make use of the equity in your home. Refinancing may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor.
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