How To Get a Jumbo Loan When Banks Say No

Darrin Seppinni
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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.

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