Beaumont Non-Qualified Mortgage

Getting pre-qualified for a mortgage may seem daunting, especially with all the stringent eligibility requirements attached to traditional home loan options. 

The good news is there are other home financing options for people who may not qualify for traditional mortgages. These are known as Non-Qualified Mortgages. 

Let Capital Home Mortgage be your guide if you consider a non-qualified mortgage in Beaumont. 

What Is a Non-Qualified Mortgage?

A Non-Qualified Mortgage (Non-QM) is a mortgage loan that does not require the borrower to meet traditional creditworthiness or employment history standards. This type of loan is tagged as a non-conforming loan as it is not subject to the rules set by the government. Instead, the lender sets the guidelines for this type of mortgage.

Non-QMs are available through private lenders. This mortgage is a good option for those who do not meet the standards for a conventional loan but still want to purchase a home.

If you are after a loan’s versatility, a non-qualified mortgage might be the best choice. You can qualify for a higher loan and are only required to provide a minimum down payment. You also don’t have to be worried about your credit score, as this type of loan is flexible when it comes to this factor. On the contrary, the flexibility that Non-QM offers might come with more expensive and higher interest rates and fees.

Qualification Requirements of Non-QM Loans

Non-qualified loans have more relaxed requirements than traditional ones. However, you should still expect to provide documentation similar in nature and quality as required for other types of finance applications. Since these less complicated financing options are tailored towards unusual or applicants with challenged credit profiles, they may ask for detailed information about your life that would not otherwise be necessary if applying through a typical lender.

Generally, we require our applicants to possess the following requirements for a Beaumont Non-QM loan:

• A higher FICO score, preferably at least 620. Compared with FHA loans that only require a 500 minimum credit score, you need a somewhat better score to qualify for an NQM.

• Purchase price down payment of up to 10% to 20%. This is higher than necessary for an FHA loan (10%), and it will be challenging to come up with if you have savings.

• A higher DTI of 50% or more. Other mortgages require a DTI between 36% to 43%, but for an NQM, a higher debt load is acceptable. If you have a DTI of 50% or more, most lenders require that your payments be manually calculated to ensure they fit within your budget.

• Stable employment. You don’t need to have the same job for years or work at a big company, but we will require proof that you have been steadily employed.

• Proof of income. We need tax returns, W-2s, and 1099 forms to verify your income. If you are self-employed, we will require additional documentation, such as profit and loss statements.

Get a Non-QM Loan in Beaumont

If you’re looking for a mortgage product in Beaumont that is more flexible than an FHA or VA loan but still offers excellent protection and stability — Capital Home Mortgage is here for you. We specialize in non-qualified mortgage loans and can help you find the right financing for your unique situation.

Give us a call at (409) 242-5530 today to go over your options. We look forward to providing your next Non-QM loan in Beaumont.