A Mortgage Built for the Self-Employed
Have you heard? Bank Statement Mortgages are making a comeback! But don’t make the mistake of referring to them as a subprime loan.
Here’s why.
Non-Prime Bank Statement Mortgages - or so-called “non-QM loans” - are simply loans that do not meet the tight standards imposed after the housing crisis that almost brought down the American economy in 2008.
Non-prime loans are certainly not the risky loans of times past. They require higher credit scores, some assets, and more equity than their subprime predecessors.
Industry experts say non-QM loan origination has the potential to grow to hundreds of billions annually in the near future, making non-QM and non-prime common household names in the next decade - just like FHA and VA are today.
Self-employed individuals shopping for a mortgage above the conforming loan limit (currently at $453,100) have discovered just how difficult it can be to qualify for a Jumbo Loan because of challenging restrictions including:
But, with a new administration comes new rules.
Confidence in the economy is increasing, money is flowing, and some credit restrictions are relaxing - causing some lenders to blaze new trails by originating loans that are outside of the conventional box.
Banks and large mortgage lenders have been terrified of buybacks and lawsuits. They’ve been ultra cautious, lending only to those who fall into a safe harbor as dictated by the rules of ability-to-repay (ATR) - requiring lenders to determine whether or not someone is able to pay back a loan.
Because they don’t fit the complex rules associated with a “qualified mortgage,” millions of Americans have been unable to buy or refinance.
But the popularity of Non-Prime Mortgages has skyrocketed and investment firms have taken notice, providing securitization for these private-label mortgage-backed securities - securitized mortgages that do not conform to the criteria set by government sponsored enterprises.
Now, lenders who are willing to step-out and fund these loans have the ability to originate yet even more loans.
Jumbo Bank Statement Mortgage Loans have many benefits that set them apart:
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.
Jumbo Non-Prime Loans - What Are They?
Self-Employed Mortgage: Buy a Home With a Bank Statement Mortgage
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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 Non-Prime Loans, Real Estate Investor Loans, Bank Statement Loans, FHA Loans and VA Loans.