Brownsville Non-Qualified Mortgage

 As you progress through the home-buying process, you’ll notice that mortgage lenders usually have similar qualification requirements for borrowers. Your application will likely be denied if your income or credit history does not meet the stringent guidelines for conventional mortgage products.

 But just because you were denied a conventional loan doesn’t mean homeownership is out of reach. With our non-qualified mortgage products, Capital Home Mortgage makes homeownership possible for Brownsville borrowers with diverse financial backgrounds.

What is a Non-Qualified Mortgage?

 A non-qualified mortgage is a type of home loan that does not meet the requirements and limitations of conforming mortgages. These loans, also known as non-conforming loans, typically have much lower eligibility requirements in terms of debt-to-income ratios, credit scores, and loan amounts. You don’t even need a 20% down payment, which is required for some conventional mortgages, so you have more chances of obtaining a home loan, even if your financial situation is far from perfect. 

Qualified vs. Non-Qualified Mortgages

 The primary distinction between qualified mortgages and non-qualified mortgages is how closely they adhere (or do not adhere) to consumer protections established by the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB) that govern home loan interest rates and fees.

 Non-QM loans use alternative income verification methods, whereas qualified mortgages adhere to strict credit and income verification guidelines. Qualified mortgage lenders must verify that borrowers can repay their loans to protect both parties from overborrowing.

Who Benefits From Non-Qualified Mortgage Loans?

 Non-qualified loans are helpful for people who have found their dream home but were turned down for a home loan because they didn’t meet qualified mortgage standards. If you were denied a traditional home loan, a non-qualified mortgage could provide the financing you need until you can meet the requirements for a conventional loan and refinance.

 A non-qualified mortgage could be worth considering if you belong to one of the following types of borrowers:

•  Borrowers with less-than-stellar credit
• Borrowers with a high DTI ratio
• Self-employed borrowers
• Small business owners
• Independent contractors
• Foreign nationals
• Retirees
• Real estate investors 

Getting a conventional loan from a traditional lender is usually complicated if you’re in any of these situations. Without a weekly or monthly paycheck, lenders might ask you for many financial documents to prove your income and capacity to pay before deciding whether to grant you a loan. Worse, if you are self-employed, your application may be turned down immediately, even if you have a good credit score and a long credit history.

We Make Homeownership a Reality.

Capital Home Mortgage’s non-qualified mortgage loan makes it much easier to apply and get approved for a home loan. And because there’s less paperwork for you to comply with, we can process and close your loan faster, too! 

If you think a Brownsville non-qualified mortgage is not for you, our seasoned loan officers can help you sort through alternative mortgage options until you find something that truly meets your needs. 

Are you ready to become a homeowner? Contact us today at (956) 307-3422!