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Texas Non Qualified Mortgage Loans

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Texas Non Qualified Mortgage Lender

Texas Non-Qualified Mortgage

It’s no secret that buying a home in Texas can be expensive. What’s more, qualifying for a traditional mortgage loan can be difficult for many Americans. 

Fortunately, with a non-qualified mortgage or Non-QM, you can purchase a home without going through the traditional lending process.

What Is a Non-Qualified Mortgage?

In a nutshell, a non-qualified mortgage is a type of home loan that doesn’t conform to the guidelines set forth by the Consumer Financial Protection Bureau (CFPB), which is why it is called a “non-conforming loan.” Lenders who offer Non-QMs are not held to the same standards as those who provide qualified mortgages (QMs).

Non-qualified mortgages are sometimes referred to as “portfolio loans” since they’re usually kept on the lender’s books instead of sold on the secondary market. Because of this, the guidelines for Non-QMs may be more flexible than those for QMs.

Non-Qualified Mortgage Eligibility and Requirements

While Non-QMs have more relaxed requirements than QMs, there are still some guidelines you’ll need to meet to qualify.

  • FICO Score

The minimum credit score required in a Non-QM is a little higher than what’s required for FHA loans, which may only need 500. For Non-QMs, you must have a FICO credit score of at least 620 or higher.

  • Debt-to-Income Ratio (DTI)

If you have a high DTI ratio, it might be best to find a Non-QM, as other types of loans require a lower DTI ratio, ranging from 36% to 43% only.

  • Employment History

For a Non-QM, you’ll need to have a steady employment history. This loan requires proof that you have been steadily employed.

  • Down Payment

You can get this mortgage with a 10% to 20% purchase price down payment, which is higher than what’s required for government-backed loans like FHA and VA.

  • Proof of Income

Lenders will require documents and information such as tax returns, W-2s, and 1099 to show your income to qualify for a QM. Meanwhile, Non-QMs typically won’t need these documents. Instead, the lender may ask for bank statements and other additional documents to verify your income.

Non-QM Benefits

Several benefits come with getting a Non-QM. One of the main advantages is that you can still qualify even if you don’t have a perfect credit score. While it is preferred to score at least 620, borrowers with a lower score may still qualify.

Another perk of a Non-QM is that you’re not required to complete as much documentation and paperwork as you would with a QM. This can be helpful if you’re self-employed or have other sources of income that don’t fit into the traditional mold.

Lastly, Non-QMs offer flexible terms. If you’re looking for a loan with a more extended repayment period, then Non-QMs could be an excellent option. 

Get a Non-Qualified Mortgage in Texas With Capital Home Mortgage

Applying for a non-qualified mortgage in Texas can be a great way to get the home you want without jumping through all the hoops that come with qualifying for a traditional mortgage.

At Capital Home Mortgage, we’re proud to offer some of the best non-qualified mortgages available in the state. We’re dedicated to making the process as easy and stress-free as possible for our clients.

If you’re curious to learn more about our non-qualified mortgages or applying for one, contact us now at 800-960-4565.

Why Texas is Choosing Capital Home Mortgage
Close On Time with True Approval

Control of the Loan from the Application to Funding.

Texas Great Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Texas Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Texas Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Texas Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325
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