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Waco Non Qualified Mortgage Loans

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Waco Non Qualified Mortgage Mortgage Lender

Waco Non-Qualified Mortgages

If you’re looking for a mortgage, you’ve probably heard of both qualified and non-qualified mortgages.

Qualified mortgages, or QM loans, were created after the 2008 housing market collapse. These loans protect both lenders and borrowers by establishing guidelines that prevent lenders from issuing loans to borrowers that can’t repay them. 

The federal government’s strict lending requirements make it difficult for certain types of borrowers to qualify for QM loans. However, not all hope is lost because those denied a qualified mortgage can always try for a non-qualified mortgage loan.

What is a Non-Qualified Mortgage?

A non-qualified or non-QM loan is a mortgage product that doesn’t conform to the lending guidelines set by the  Consumer Financial Protection Bureau. Home loans in this category usually have more specific eligibility and qualification requirements, which makes them an excellent alternative for people who can’t get a conventional loan. 

It may be difficult for real estate investors, foreign nationals, self-employed individuals, and those with poor credit to qualify for a conventional loan. This is where a non-QM loan can come in handy. This financing solution is meant to help a particular group of borrowers realize their dream of owning a home.

Non-Qualified Mortgage Options for Waco, TX Homebuyers

Are you considering getting a non-qualified mortgage to pay for your new home or rental property? Like every other type of mortgage loan, non-qualified mortgages come in different types. You’ll have to be familiar with each of these options to increase your chances of approval:

  • Bank Statement Loans

In a bank statement loan, lenders review your bank statements to get a good idea of your income and see if it qualifies you for non-qualified mortgage financing. Borrowers must show that they have been self-employed for at least two years and provide 12 months of bank statements. This is the non-QM loan to go for if you are self-employed or a business owner.

  • Investor Cash Flow Program

Most private and hard money loans have high-interest rates and take a long time to get approved, which is disadvantageous for most real estate investors. 

The criteria for getting a loan through the Investor Cash Flow Program are more flexible, making it simpler and faster for investors to obtain financing. These loans typically use debt service coverage ratios. Borrowers are qualified based on how much rental income their properties earn instead of personal income.

  • Asset-Based Loans

The asset qualifier loan is designed for borrowers with substantial liquid assets who may not qualify for a conventional mortgage. This program compares the buyer’s liquid assets to the proposed loan amount and other recurring monthly obligations. There is no need for borrowers to submit income-related documentation.

Asset-based loans could be very beneficial for retirees who do not have the typical income requirements but can show substantial liquid assets.

  • Foreign National Loans 

These loans are designed to help foreign national borrowers deal with credit and assets verification issues so that loans can be funded on time and with as little trouble as possible.

Similar to our investor cash flow program, qualification is based on the property’s cash flow. Borrowers do not need to show any proof of income or employment.

Are Non-Qualified Mortgages Risky?

Non-QM loans developed a bad reputation because of the housing crisis during the Great Recession. However, today’s non-QM loans are not like the subprime mortgages of the past. 

While not as strict as qualified mortgages, non-QM loans also follow lending guidelines that safeguard the interests of both the borrower and the lender. Capital Home Mortgage’s qualified and non-qualified loans have the same process except for the required documentation.

Apply for a Waco Non-Qualified Loan Today!

Capital Home Mortgage has a wide range of non-qualified mortgage options, catering to home buyers’ diverse needs and requirements. Our clients commend us for our virtually seamless application process. As a direct mortgage lender in Waco, we approve and close loans much faster! 

Take a step closer to owning your dream home. Call us at (254) 213-7343 for a free quote.

Why Waco is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

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Waco EZ A+ Loans

Non Qualified Mortgage Loans can be used to purchase primary, secondary, and investment properties.

Non QM loans differ from other types of mortgage loans by allowing for different sources of income to be used for qualifying. Non QM mortgages also allow for shorter waiting periods for bankruptcy, foreclosures and short sales and typically allows for unique properties like no warrantable condo’s or condo hotels.

Non Qualified Mortgage loans usually require less documentation than Conventional Home Loans, VA Home Loans, FHA Home Loans, or USDA Home Loans which makes for easier qualifying. Subsequently, Non Qualified Mortgage rates are higher due to limited documentation requirements. 

Non Qualified Mortgages are back by private investment and programs change frequently based on market demands. 

Examples of NON QM programs are Bank Statement Only,  Debt Service Coverage Loans, Foreign National Programs.

For more information on a specific area please contact one of our licensed loan officers. 

Waco EZ FLex+ Loans

  • Max loan amount $2.5M
  • Min FICO 580
  • Purchase and refinance allowed
  • Financing up to 90%
  • DTI allowable up to 50%
  • No Mortgage Insurance
  • Reduced waiting period for Bankruptcy, Foreclosure, Short Sale and Deed in Lieu
  • No Tax Returns for Self Employed Borrowers,
  • Qualify with only Bank Statements
  • Eligible Properties: 1–4-unit property, PUD,
  • Warrantable & Non-Warrantable Condo & Townhomes
  • Interest-only option available
  • All occupancy types allowed
  • Non-permanent resident eligible
  • No cash limit for cash-out
  • Min reserves 3 months
  • No second appraisal for loan amount up to $1.5M
  • DACA Borrowers allowed

Waco We Make It EZ Loans

No Tax Returns, W2s or Paystubs | Qualify with Three Months Business Bank Statement

  • 12 months CPA prepared P&L statement
  • Max loan amount: $1.5M
  • Min credit score: 680
  • Max LTV: 80% for primary and second home; 75% for investment property
  • Interest-only OK
  • NonWarrantable condo OK
  • First time homebuyer OK
  • For purchase transactions, 20% cash is required from the borrower (25% in case of investment property)

Waco Bank Statement Loans

  • 12 or 24 months Personal / Business Bank Statements
  • Max Loan Amount $3.5M
  • Min FICO 580
  • Max DTI 50%
  • Max LTV 90%
  • Only Self-employed Borrowers Eligible
  • All Occupancy Allowed
  • Purchase and Refinance Allowed
  • Interest-only Feature Available
  • Non-Warrantable Condo OK

Waco Salaried Borrowers Loans

  • Qualify with only written VOE
  • Max loan amount $3.0M
  • Min credit score 660
  • Max LTV 80%
  • Primary and second home OK
  • First time homebuyer OK
  • Non-warrantable condo OK
  • Interest-only OK

Waco Debt Service Coverage Loans

  • Loan amounts up to $3 million
  • Interest only option available
  • Maximum Loan-to-Value (LTV): Up to 80%
  • 1-4 unit property, PUD, Warrantable & Non-Warrantable Condo are eligible
  • No DTI requirement
  • No Mortgage Insurance
  • Minimum FICO score of 600
  • Maximum Cash Back: LTV ≥ 65%: $500,000 / LTV < 65%: $1,000,000
  • LLC, S-Corporation
  • Partnership eligible
  • DACA Borrowers allowed
  • Non-Warrantable condo property must meet specific eligibility criteria
  • Investment Property for Business
  • 24 month wait for: Bankruptcy, Foreclosure, Short Sale, Deed in Lieu
  • Manual Underwriting is only allowed
  • (DSCR) must be => 0.75 Debt Service Coverage Ratio – Income determined by subject property (Lease agreement, Form 1007)

Waco Foreign National Loans

  • Max loan amount $2M
  • Min FICO 680 or Foreign Credit
  • Purchase and Refinance allowed
  • Max LTV: 75% for 680+ FICO
  • 70% for Foreign Credit
  • Second Home and Investment Occupancy OK
  • Max DTI: 50% for Standard Income Documentation
  • 43% for Asset Utilization
  • Asset Depletion Option Available
  • Cash back up to $500,000 for Cash-out Refinance
  • Interest-only option available
  • No second appraisal for loan amount up to $1.5M
  • Cash-out permitted for Reserves
  • 36 months waiting period for Derogatory Credit Event

Waco ITIN Loans

  • Allowed for Primary Residence & Second Home
  • Purchase and Refinance option available
  • Primary Borrower can only qualify with an ITIN
  • Max LTV 80%*
  • Max DTI 50%
  • Max Loan Amount $1,000,000
  • Min Loan Amount $75,000
  • Min FICO: 620 (640 for Cash Out Refi) Credit report run under TransUnion
  • Only4 Years Waiting Period for Derogatory Credit Event
  • Minimum Tradeline: 2 open or active Tradeline with a minimum of 18 months history or 3 open or active tradelines with a minimum of 12 months history

Waco Texas Mortgage Team

Conor Hayhurst

NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

NMLS 210325
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