January 24, 2023

As we continue down the loan program row, I wanted to talk about Non-QM Mortgages today. Non-QM Loans are not your Standard Fannie / Freddie/ FHA / VA conventional loans, and they require a larger down payment and are generally for people who can’t qualify for your standard mortgages. The rates are a bit higher, and you can get longer or even interest-only terms on some programs. Below are some of the Non-QM Loans:

• Bank statement loans: We have banks that will take as little as three months, but you will get the best rate using 24 months of bank statements. Minimum 15% down now, but we have seen as little as 10% down in the recent past. 3 Months statements require 20% down! 660 Min Credit score.
• DSCR:  Debt Service Coverage Ratio Loans - This allows a buyer to qualify based on the income of an investment property. If the property’s income is not enough, some banks will just charge a higher rate. Minimum 20% down, 680 minimum credit score.
• Asset Qualification: Allows a buyer to qualify based on the assets they have in the bank - 15% down minimum - 660 Minimum credit score.
• No Income Qualifier:  No Stated income – No income, no job, nothing except assets needed. 12 Months reserves and 20% down with a 700 credit score. 640 credit score minimum, but you need 35% down and 24 months of reserves.

So that’s the basics, and lower credit scores require more money. These loan programs are great when someone needs help to qualify for a regular loan.

Interest rates were worse yesterday and better today. Yup, life’s ups, and downs are so much fun.

• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!
• Government Loans (FHA / VA) are in the 5’s.
• Conventional Loans up to $726,200.00 are in the highs 5’s and low 6’s.
• High Balance Loans $726,201.00-$1,089,300.00 are in the high 5’s and low to mid 6’s
• Jumbo loans above $1,089,300 are in the low 6’s
• 5/1, 7/1, 10/1 Arms are in the 5’s
• Bank statement loans - They are available with 10% down again! 7’s + depending on down and credit score.
• Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the 8’s.
• 0 down loans are in the high 7’s to low 8’s- 620 credit score min right now, up to $725,000.00.
• Private Money lenders - Hard Money Loans – 35% down!
• No Ratio Loans 30% down
• Debt Service Coverage loans with as little as 15% down
• Bridge Loans - are typically 7.49% with limited fees – But they get you where you need to go!

Interest rates are subject to change without notice! Above are LA County Loan Limits.