Non QM Loans and What to Watch!

Most non-QM loans don't fall apart at the beginning…
they fall apart the week before closing.
And when they do, it's usually not because of the borrower.
It's the lender.
The Reality of Non-QM Right Now
Non-QM loans aren't new, but they're being used more than ever.
Bank statement loans.
DSCR.
Profit & loss programs.
Asset depletion.
They all serve a purpose.
But here's the problem:
Every lender plays by a different rulebook.

• One lender requires heavy reserves… another doesn't
• One allows a non-warrantable condo… another declines it instantly
• One clears a file early… then changes guidelines at the last minute

These aren't small differences.
They can make or break your deal.
What's Actually Happening Behind the Scenes
Most people never see this part.
After a Non-QM loan closes, lenders sell it to an investor.
If that investor pushes back…
the lender can be forced to:

• Buy the loan back
• Take a loss
• Tighten guidelines immediately

So, a program that worked yesterday…
suddenly doesn't work today.
No warning.
No exceptions.
A Real Example
Earlier this year, a lender asked for 12 months of canceled checks
on a mortgage already verified on the credit report.
It made zero sense.
Instead of dragging the client through unnecessary conditions,
we moved the loan to another investor…
and still closed on time.
The client never even knew there was an issue.
Why This Matters for You
When you're working on a deal:

• Not all lenders = same outcome
• Guidelines can shift mid-transaction
• The wrong lender can cost you the entire deal

When you have a significant commission on the line,
you can't afford uncertainty on the lending side.
Where We're Different
We're not tied to a single investor.
We have multiple outlets for Non-QM loans.
If one lender becomes an issue…
we pivot, without blowing up your deal.
That flexibility is everything in today's market.
Interest Rates
The past couple of days have been positive for interest rates. Recent economic data has come in weaker, and there's also encouraging news that the war may be nearing an end, both of which are helping rates improve.
If the conflict is resolved in the coming weeks and the Strait of Hormuz fully reopens, we could see interest rates move back to where they were a few weeks ago, with the potential to improve even further.
My overall take is this: we worked through the tariff concerns without triggering significant inflation. If any inflation does show up, it's likely to be temporary. As things settle, we may start to see a clearer picture of the broader economic slowdown, which typically leads to lower interest rates.

Quick Loan Snapshot
Government (FHA/VA/USDA): 5s
Conventional: Low - mid 6s
High Balance / Jumbo: Mid - high 6s
ARMs: 5s - 6s
Specialty Programs

• Bank Statement Loans → 10% down
• DSCR Loans → as low as 15% down
• Profit & Loss Loans → 20% down (no bank statements)
• No-Ratio Loans → 30% down
• Bridge Loans → ~7.79% with limited fees
• 0% Down Options → up to $1.325M (620+ credit)

We also finance non-warrantable condos.
Condo Update
Soledad Garden Homes –50K insurance deductible
If you're unsure about a condo, call me.
We can check Fannie's list in real time.

Full condo watchlist:
https://mikemeena.com/non-warrantable-condos/

Final Thought
If something feels off on a deal…
if answers aren't clear…
or if the lender seems unsure…
Call me before it becomes a problem.

I'll help you structure it correctly from the start.

📞 Direct: 661-291-2222 (Text OK)
📞 Cell: 661-714-6258 (Text OK)
📞 Office: 661-260-2970 ext. 2222
📧 Mike@AugustaFinancial.com

Have a great day, and a better tomorrow. Please call me if you know someone who needs to borrow.

Sincerely,