Non Qualified Mortgage Lender Colorado

Non-Qualified Mortgage Loans In Colorado

What is a Non-Qualified Mortgage?

Non-qualified mortgage loans (non-QM loans) are loan products that do not conform to the lending guidelines set by the Consumer Financial Protection Bureau (CFPB). These loans are designed for home buyers who need help to meet the stringent requirements for a qualified mortgage, such as real estate investors, foreign nationals, self-employed individuals, and credit-challenged borrowers.

Non-QM loans differ from regular or qualified mortgages (QM loans) in several ways. A qualified mortgage meets the CFPB’s “ability to repay” rule, which requires lenders to vet borrowers’ finances and set terms on the loan they are likely to pay back. On the other hand, non-QM loans use alternative income verification methods instead of the standard income methods used in QM loans. Additionally, non-QM loans are not insured, guaranteed, or backed by government agencies like FHA, VA, or Fannie Mae, unlike QM loans.

Types of Non-Qualified Mortgage Loans

There are several types of non-QM mortgage products available, including:

Asset Qualifier Home Loan: This type of non-QM loan allows you to get a mortgage against your liquid assets instead of income.
Home loans exceeding 30-year terms.
Home loans with negative amortization.
Home loans with interest-only payments.

Non-QM loans may also exceed the CFPB’s current price-based thresholds, such as QM Safe Harbor (APR ≤ APOR + 1.50%) and QM Rebuttable Presumption (APR > APOR + 1.50%, but ≤ 2.25%).

Some borrowers who might benefit from non-QM loans include retirees, self-employed individuals, real estate investors, business owners, foreign nationals, and buyers who live off investments or have high assets. Non-QM loans allow borrowers to qualify based on alternative methods, such as bank statements or using assets as income, instead of traditional income verification.

Pros and Cons of a Non-Qualified Mortgage

Before applying for a non-QM loan, weighing the pros and cons and determining if it’s the right option for your specific financial situation is essential.

Pros:

More flexible documentation requirements: Non-QM loans often have less stringent documentation requirements, making them more accessible for borrowers who may have difficulty providing the necessary paperwork for a traditional loan.
Higher DTI ratio limits: Non-QM loans may allow for higher debt-to-income (DTI) ratios, which can benefit borrowers with higher debt levels.
Interest-only payment options: Some non-QM loans offer interest-only payment options, which can result in lower monthly payments in the initial loan period.
Lower credit score requirements: Non-QM loans can benefit borrowers with low credit scores who may not qualify for traditional mortgages.
Flexible terms: Non-QM loans may offer more flexible terms, such as balloon payment options and 40-year loans, unavailable with most qualified mortgages.

Cons:

Greater risk of default: Non-QM loans, such as interest-only mortgages, may increase your risk of defaulting on the loan.
Higher down payments: Down payments for non-QM mortgage loans are usually higher than other mortgage products.
Higher interest rates: Non-QM loans often have higher interest rates than qualified mortgages.
Costly upfront fees: Borrowers may face more upfront fees when applying for a non-QM loan, adding to the overall cost of the mortgage.
Limited availability: Non-QM loans are less readily available than qualified mortgages, which may limit your options when searching for a suitable mortgage product.

Apply for a Non-Qualified Mortgage in Colorado

Capital Home Mortgage recognizes that not all consumers possess the same characteristics. Even if you do not have a typical income, we can still provide you with the necessary financing to buy a home or refinance your current mortgage.

Additionally, our team can help you explore other types of home loan products. We provide a variety of qualified and non-qualified mortgages to meet the diverse requirements of our customers.

Want to learn more about our options for non-qualified mortgages? Call us immediately at (303) 226-1177.

Non-Qualified Mortgage Loans Colorado

A house loan that is excluded from the Consumer Financial Protection Bureau’s (CFPB) agency-standard documentation standards is referred to as a non-qualified mortgage, or non-QM. Non-QM loans could include mortgages with maturities greater than 30 years. It is designed to aid homeowners who require assistance and cannot meet the strict requirements of a qualifying mortgage.

Borrowers can use unconventional methods of proving their income while applying for a non-qualified mortgage, which may help them get approved for a house loan. Borrowers with especially unusual income qualification circumstances may be eligible for these loans.

For new house purchases, refinances, investment properties, or second homes, a Non-QM loan may be used.

Who is Eligible for a Non-QM Loan?

For borrowers who can afford a mortgage but have a special financial situation that makes getting a qualifying mortgage difficult, a non-QM loan may make homeownership attainable.

Non-QM loans cover the gap for independent contractors with low average incomes or those who have had difficulty obtaining a qualifying mortgage loan due to credit issues. Non-QM loans include underwriting standards that enable the lender to see your financial history in its entirety. This gives the lender the opportunity to assess a borrower’s capacity to repay a loan from a little different angle than usual.

For the following people, a non-qm is advantageous:

People who are self-employed, foreign nationals, real estate investors, borrowers with significant assets, and borrowers with low credit scores.
Benefits of Non-QM Loans
if borrowers don’t otherwise qualify, assist them in getting a mortgage;
Give more lenient conditions;
Use other forms of proof of income, such bank statements.
Benefits of a Non-QM Loan
Increased interest rate; Significant down payment; Limited supply.

Compared to typical mortgages, non-QM loans are more expensive both up front and over the course of the loan. You will probably have greater closing costs and a considerably higher interest rate than with a traditional mortgage because of the added cost of points and fees that usually go along with a non-QM mortgage.

Apply for a Non-QM Loan in Alaska

By helping you establish your goals, a Capital Home Mortgage Colorado loan officer can help you decide which of our non-QM mortgage solutions may be best for your unique financial situation. To begin, dial (303) 226-1177 right away.

Why Colorado HomeBuyers are Choosing Capital Home Mortgage

Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7 Day a Week Support Application to Final Payment

Colorado Mortgage Rates

Colorado Mortgage Programs

Colorado Home Purchase

Thinking of Buying a Colorado Home?

Primary, Secondary, Investment
FHA, VA, USDA, Native American
Conventional, Jumbo, Non QM
Reverse, Renovation, Manufactured

Colorado renovation home loans

Looking to Rehab a Colorado Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan? Purchase the Perfect Home and make it your own. Call today.

Remodel, Renovate or Repairs
FHA 203K Streamline or full
fannie mae homestyle reno
freddie mac home choice reno

Colorado FHA Home Loans

Great for 1st Time Colorado 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 Payment
Flexible Underwriting
Higher Debt to Income Ratios
Lower Credit Scores OK

Colorado VA Home Loans

100% Financing for Colorado Veterans

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

Simply Qualifying for Veterans
No Down Payments Requirements
Lower Credit Scores Accepted
Manual Underwriting Allowed

Colorado Conventional Home Loans

Flexibility for Colorado 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
Great Rates & Low Fees
Single Family and Multi-Family
Renovation Loan Programs

Colorado Jumbo Home Loans

Colorado Non Conforming Loans

Primary Residence and 2nd Homes
Higher Loan Amounts – 3 Million
Great Interest Rates
Investor Specific Guidelines

Colorado USDA Home Loans

100% Rural Colorado 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.

Rural Properties Only
Primary Residence Only
Geographic Restrictions
Income REstrictions

Colorado Native American Loans

Colorado 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

Colorado Manufactured Home Loans

Great Alternative Colorado Housing

Colorado reverse mortgages

Your Colorado 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
credit scores not applicable
Minimum age 62

Colorado Non QM Home Loans

Making Colorado Mortgages Possible

Looking for Non Traditional Home Mortgage Loan? Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

Purchase, Rate and Term & Cash-out
Primary, Secondary and Investment
Full Doc & Bank Statements Programs
Corporations OK

Colorado One Time Close mortgages

Build Your Colorado Dream Home

Primary Residence Only
Close Once
Lock Rate at Contract
Traditional Final Mortgage

Colorado Refinance Mortgage Loans

Colorado Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing. Call today and let our Loan Officers walk you through the process.

Reduce Mortgage Term
Lower Monthly Payments
Appraisal Waivers
Streamline Options Available

Colorado Cash-out Home mortgages

Colorado Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

Capital Home Mortgage Colorado

Colorado Non Qualified Mortgages