Killeen Non-Qualified Mortgage

With government policies influencing mortgages, not all Americans can fit into the basic requirements imposed in most lending institutions. The complexity involved in the application process may render some applicants ineligible or rejected. If all other options have been exhausted, get a non-QM loan.

At Capital Home Mortgage, we help our clients get the best mortgage loan for their needs. Before we jump into non-QM loans, our loan officers will try to find alternative products that might match your current financial situation. If we think you’re not fit for qualified loan programs, we’ll consider non-QM loans to help. 

What is a Non-QM?

A non-qualified mortgage is a loan that doesn’t conform to the standard requirements of a qualified loan. The Feds set minimum borrower requirements to regulate mortgage agreements in the US, and lending institutions increase minimum requirements to reduce lending risk. But since some borrowers don’t meet standard requirements, lending institutions like Capital Home Mortgage offer alternative mortgage programs to make financing more accessible to Americans.

Qualification Requirements of Non-QM Loans

Requirements for a non-QM loan are the same as standard requirements. All Non-QM loans are subject to investor guidelines. In qualified mortgages, lenders are bound to follow Federal requirements, but Non-Qualified Mortgages may use alternative documentation methods. 

• Employment and Sources of Income

Some borrowers are still recovering from financial downfall, and a non-QM loan may help improve their credit score.

• Credit History and Score

There is no fixed credit score for Non-QM loans. Even if we follow the standard 580, most investors will require a higher credit score to qualify for Non-QM loans. Your credit score will dictate your application and interest rates. A lower score is risky, and lenders would reject it or put in a high-interest rate. 

• Debt-to-income Ratio

Your debt-to-income ratio must be below 40% to increase your chances of approval. We don’t have a fixed DTI ratio cut-off, but we weigh in on the different factors of your application. To make your application more appealing, we recommend paying off short-term debts to reduce the DTI or delaying your application until you settle a previous loan.

Apply for a Non-QM in Killeen 

Capital Home Mortgage offers Killeen non-QM loans to help some borrowers access financing. Our direct mortgage lending process enables us to process your application and help you find the best mortgage product. Call our professional loan officers in Killeen at (254) 213-7343 for more information.