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Posted by Darrin Seppinni
July 23, 2020

How To Get a Jumbo Loan When Banks Say No

Flexible qualifying solutions for Jumbo Loans 

Traditional jumbo lending has gotten stricter in recent months, making it harder to buy a home in many of America’s higher-priced housing markets. Borrowers need perfect credit, low debts, and lots in cash reserves to make it happen.

At least on big bank jumbo loans.

Fortunately, there’s another alternative: the non-QM jumbo loan. Also called non-bank loans, these are alternative mortgages designed for borrowers who don’t fit those picture-perfect expectations that most banks, credit unions, and major lenders adhere to.

Exactly who should use these, and how can you qualify? Here’s the scoop.

Should you use a non-QM jumbo loan?

Non-QM jumbo mortgages come with serious benefits — especially for non-traditional buyers or refinancers. They don’t require stellar credit, they have more flexible income requirements, and they allow for higher debt-to-income ratios than other mortgages. You can also choose a cash-out option if you’re looking to tap equity or pay for some renovations.

Non-QM jumbo loans are particularly helpful if you don’t have a ton in cash reserves, your credit score isn’t great, or you’re self-employed or a contractor. For many self-employed pros, their tax returns don’t reflect their full earnings. This can make it harder to qualify for a traditional jumbo loan (or any mortgage, for that matter).

Qualifying for a non-QM jumbo financing

Of course, non-QM jumbo loans do have some qualifying requirements; they’re just not as strict as you’d find with big banks or lenders.

On these mortgages, you have three options for establishing your income and eligibility. You can:

  • Provide your last tax return
  • Offer 12 to 24 months of your business or personal bank statements (if you’re self-employed)
  • Use your liquid assets to qualify

Additionally, you’ll need at least a 10% down payment, a minimum credit score of 660, and a DTI of 55% or less (most loans require 43% or lower).


Jumbo loans with flexibility

If you need a high-balance loan but don’t meet the standards of traditional jumbo lenders, we can help. Whether you’re refinancing or buying a new property, our non-QM jumbo loans offer the financing you need. Rates start in the low 3% range, and loan amounts go up to $20 million. Get in touch to learn more or get prequalified today

Ready to Get Started?

If you think you're ready for a Jumbo Bank Statement Loan of your own, learn more about how to qualify by downloading our free eBook, The Ultimate Guide for Self-Employed Bank Statement Mortgages.


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About HomeLife Mortgage

For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing.  HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.

Darrin Seppinni

Darrin Seppinni

Darrin Seppinni is a highly trained and experienced veteran of the mortgage lending industry. For more than 35 years, Darrin has leveraged his specialized knowledge and expertise to secure real estate financing for thousands of borrowers using leading edge mortgage loan products. He is proud to be at the forefront of alternative lending programs specializing in: Jumbo and Super Jumbo loans, self-employed bank statement loans (no tax returns needed to qualify); and investment property rental loans (stated income). Darrin is passionate about educating borrowers with unique needs on the benefits of non-traditional loan programs. Darrin is the author of, The Mortgage Originator Success Kit, published by Mc Graw Hill. Contact us to learn more.