Austin Non-Qualified Mortgage

Many Americans can’t get to the cut with traditional mortgage eligibility requirements. Some applicants may only meet some criteria, resulting in a rejected application. And yet, they still need the funding to afford their dream homes. 

The good news is just because you do not qualify for conventional mortgage loans doesn’t mean you can’t get the financing you need. Capital Home Mortgage offers a solution through our non-qualified mortgage loan.

What is a Non-QM Loan?

A non-qualified mortgage or non-QM loan is a home mortgage loan that doesn’t meet the Consumer Financial Protection Bureau (CFPB) requirements. Not meeting the requirements doesn’t mean that non-QM loans are illegal. The CFPB requirements only aim to protect the interests of the borrowers and lenders. 

CFPB requires “good faith determination” of the borrower’s ability to pay. Since they only want to protect the interests of both parties, the CFPB prevents predatory lenders from victimizing borrowers and protects borrowers from exorbitant terms. In a non-QM loan, the lender need not perform good faith determination. 

Non-qualified mortgage loans offer an avenue to purchase home financing outside traditional home loan programs. 

Are non-QM loans risky? Yes, they are. The CFPB cannot protect homebuyers in worst-case scenarios.

Are Non-QM Loans Safe?

Since non-QM loans are risky, does that mean they aren’t safe? It depends on the lender. As the borrower, you must ensure the lending company’s legitimacy before engaging with them. You may contact the CFPB to gather information about the lending company. If you find a decent and good lender, there’s no need to worry about getting non-QM loans from them.

Non-QM loans become unsafe if you get them from loan sharks or predatory lenders. These lenders are illegal and charge exorbitant interest rates and harsh mortgage terms. Avoid them as much as possible, even if they offer you quick cash. 

Capital Home Mortgage is a client-first lending institution. We put your interests in mind and find ways we can meet in the middle ground.

What are The Requirements of Non-QM?

There are no standard requirements for non-QM loans. But to give you an idea, you can check CFPB requirements as a starting point. The basic requirements of a Non-QM are as follows:

• A credit score of at least 620 for conventional financing

• Income tax returns (W-2s or 1099s)

• Business tax returns

• Proof of income (pay stubs, proof of deposits)

• Certificate of employment for employed

• Financial statements for businesses

From the list above, tick those you meet, then take note of those you don’t have. Visit us at Capital Home Mortgage to discuss the requirement/s that you can’t meet, and we’ll find a workaround.

Get a Non-QM Loan in Austin Today

Capital Home Mortgage strives to deliver an enjoyable home-buying experience, whether securing traditional mortgages or non-QM loans. We cater directly to your needs and provide professional assistance throughout the loan process. 

Let’s discuss how our non-QM loans in Austin can help secure homeownership today. Call us at (512) 237-7400 to start the application.