This falls under conventional and is split out but I thought we need a spot just for it altogether as well in case that is what someone is looking for:
Non-Qualified Mortgage Loans, aka non-QM Loans are typically made by private lenders, wallstreet backed companies, or investor groups. Skyridge Lending, LLC has access to several of these loan programs and options and they are typically brokered loans. While they are more expensive in closing costs and interest rate, they do offer much more flexibility with credit scores, what is on the credit, income and asset documentation, as well as many other areas.
Qualifying – Non QM loan options are easier to qualify for in certain respects and allow for larger loan amounts. Most jumbo loan options are also non QM. These loans have more relaxed guidelines overall with regards to credit history, limited credit, bankruptcy, foreclosure, and judgments. They also have more flexible options for income documentation, allowing bank statements for self-employed borrowers and higher debt to income ratios. Lastly, they typically don’t require as many assets.
Loan to Values – these are usually limited to 90% and lower with these loan types because they are more flexible with credit and income qualifications. In cases where credit scores are lower or there is a recent bankruptcy or foreclosure then the loan to value ratios are lower.
Credit Scores – credit scores will go as low as 500 with reduced loan to values of 60 to 65% of the properties value.