Non Qualified Mortgage Loans

Non Qualified Loan (Non-QM Loan)

A Non Qualified Mortgage is any mortgage loan that is not compliant with the Consumer Financial Protection Bureau’s (CFPB) existing rules on Qualified Mortgage. A qualified mortgage is a home loan that meets certain standards set forth by the federal government. Lenders that generate such loans will be presumed to have also met the Ability-to-Repay rule mandated by the Dodd-Frank Act.

The qualified mortgage rule, as defined by CFPB, is designed to create safer loans by prohibiting or limiting certain high-risk products and features.

What Makes a Loan a QM Loan?

  1. No Excessive Upfront Points and Fees, Points and Fees charged by a Lender to the Borrower must not exceed 3% of the total loan amount
  2. No Toxic Loan Features, No Interest-Only Loans, No Negative Amortization Loans, No terms beyond 30 years, No Balloons
  3. Limits on Debt-to-Income Ratios – General rule for Qualified Mortgage is 43%,

A Non-QM loan can help borrowers who have had credit issues in the past such as foreclosures, bankruptcy, late payments or other isolated credit issues. Non-QM loans also have underwriting guidelines that are different than the typical conventional or government type loans. Self-employed borrowers typically have more complicated income structures that require different calculations than wage earners.

Loan Options for the “Almost” Borrower

  • 4 yrs seasoning foreclosure, short sale, bk or deed-in-lieu
  • Loans up to $3 million (minimum $150,000)
  • Credit scores starting at 660
  • Up to 90% LTV/CLTV
  • Owner-occupied and second homes
  • Non-warrantable condos considered
  • Interest-only available
  • Cash-out available – $500,000 maximum
  • Full doc and bank statements available
  • Option to qualify with assets instead of income
  • 1 year tax return program available

Non-Prime Loan Options

Texas Premier Mortgage has set the standard in non-QM with our innovative programs designed to meet borrower’s unique circumstances. Our non-Prime program offers a unique solution to help you quickly close loans for borrowers who may not meet standard Agency guidelines for financing.

  • 1 day out of foreclosure, short sale, bk or deed-in-lieu
  • Loans up to $1 million
  • Credit scores down to 500
  • Up to 90% LTV
  • DTI up to 50% considered
  • Owner-occupied, 2nd homes, and investment properties
  • Non-warrantable condos considered
  • Jumbo loans down to 500 score
  • 5/1 ARM or 30-year fixed
  • No pre-payment penalty for owner-occ and 2nd homes
  • No active tradelines OK with housing history
  • SFRs, townhomes, condos, 2-4 units
  • Seller concessions to 6% (2% for investment)
  • 7/1 ARM

Loan Options for Self-Employed Borrowers

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Texas Premier Mortgage bank statement mortgage program is the perfect option for self-employed borrowers who do not have the tax documents to prove their ability to pay.

  • No tax returns required
  • 12 month personal bank statements
  • 24 month business bank statements
  • Loans up to $3 million
  • Credit scores down to 600
  • Up to 90% LTV on Personal and Business with no MI
  • DTI up to 50% considered
  • Owner-occupied, 2nd homes and investment properties
  • 2 yrs seasoning for foreclosure, short sale, bk or dee-in-lieu
  • Non-warrantable condos considered
  • Jumbo loans down to 600 score
  • 5/1 ARM or 30-year fixed
  • No pre-payment penalty for owner-occ and 2nd homes
  • Seller concessions to 6% (2% for investment)
  • 2 year self-employed required

Loan Options for Investors

Our Investor Cash Flow mortgage program allows clients to qualify based on rental analysis to determine property cash flow. No personal income required to qualify. This saves you from submitting complicated income statements and tax returns.

  • No personal income used to qualify
  • Qualification based on property cash flow
  • 2 yrs seasoning for foreclosure, short sale, bk or deed-in-lieu
  • Credit scores down to 660
  • Up to 80% LTV
  • No DTI restrictions
  • Must have current mortgage
  • 1-4 units and condos
  • No limit on number of properties financed
  • Loans up to $1 million
  • Seller concessions to 2%

Non-Prime Bridge

With a variety of loan amount options and just about any credit profile Texas Premier Mortgage is the home for your next bridge loan request. Our bridge products are usually used by Real Estate owners that only want to borrow money for a short period of time (up to 60 months), then want to exit out of our loan to obtain bank financing.

  • No Income Proof Needed
  • All Loans are N.I.V
  • No DTI Ratios
  • No DSCR calculated on residential properties
  • LTV up to 80%
  • Loan Amounts from $50,000 – $15,000,000
  • Lending to LLC’s, S-Corp, Trust or Individuals.
  • Property Types Include: SFR, Condo, Condotels, 2-4 Units, Multifamily, Mixed-Use, Office, Retail
  • Interest Only Option Available
  • Foreign Nationals – OK
  • 100% Gift Funds – OK
  • Properties with Deferred Maintenance
  • Rural Properties
  • Short Term and Long Term Bridge Options are Available
  • No source & seasoning of down payment options

Fix and Flip Loan Program

Sometimes a great opportunity comes up in the market. Our Fix and Flip loan allows borrowers to purchase a distressed property or refinance an incomplete property without the need for draws and escrow accounts typically required by traditional lenders.

  • No Income Proof Needed
  • LTV’s up to 75%
  • 12-month term available case by case
  • No Prepayment Penalties
  • Loan amounts up to $2,000,000.
  • Flipper must show ability to complete rehab.
  • FICO’s down to 500 – OK

For more information about Non Qualified Mortgage Loans, their benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page.