NO DOC PROGRAM

WHAT IS IT?

A non-qualified mortgage loan is more commonly referred to as a Non-QM loan. Within the mortgage industry, a qualified home loan is one that complies with the requirements set forth by the Consumer Financial Protection Bureau (CFPB) and standards set by the federal government. These include loans sold or insured by entities such as Fannie Mae or Freddie Mac. Not every borrower fits neatly inside a traditional government matrix. Investors, foreign nationals and those who are self-employed, as well as borrowers with credit blemishes, such as foreclosures, low credit scores or prior bankruptcies, may find it difficult to qualify for a conventional loan.


Every person has a story. Our non-QM loans help more borrowers achieve the dream of home ownership.

WHO IS IT FOR?

Most often, we find borrowers are in one of three situations that best fit a Non-QM loan:

  • Self-employed borrowers with a lot of income tax write-offs
  • Borrowers with credit blemishes
  • Investors wishing to purchase rental or vacation home properties.

Self-employed borrowers often face more complexity than traditional wage-earning borrowers. A Non-QM loan can help qualify these borrowers with alternative documentation, such as bank statements. . A Non-QM loan has different underwriting guidelines than conventional or government-backed loans. Non-QM loan lending guidelines follow regulatory guidelines while considering a borrower’s Ability to Repay (ATR), according to the loan’s terms. This includes cash flow through personal or business bank accounts.

NON-QM PROGRAM

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WAGE EARNER

NO DOCUMENTATION

SELF-EMPLOYED

NO TAX RETURN

OTHERS

HOME PURCHASE

Frequently Asked Questions

  • How do I find out how much house I can afford?

    This depends mostly on the loan program you decide to go with. There are a wide range of programs that fit a variety of lifestyles and needs. Each will offer different rates and terms, and have different requirements for down payment amount, credit and income. Speaking to one of our mortgage advisors will help you narrow down your options and determine the price you can afford.


    At Connie Pyo Mortage, we will help you sort your financial information to help you figure the price range in line with your budget. We will typically look at your income, credit, debt and assets. Your assets will show how much money you have for a down payment, closing fees, points and other costs you may need to pay to close your loan.


    In addition, be sure to ask if there are any local or state down payment assistance programs that you may be able to qualify for.


    Getting pre-approved is the best way to find out what loan programs you qualify for, and how much you’ll be able to afford within those programs. A pre-approval will be provided by Connie Pyo Mortgae at no cost.

  • What’s the difference between pre-qualification and pre-approval?

    Simply speaking, pre-approval is a more formal process and is a conditional agreement between you and your lender, whereas pre-qualification is an informal overview and discussion about your finances and ability to obtain a loan.


    During the pre-approval process, your income, assets and credit will be documented and verified. This will help you in the home buying process because sellers and real estate agents take home buyers with a mortgage pre-approval more seriously, and may give you an advantage. It can also help you get connected to a real estate agent more quickly, as some won’t work with home buyers without a pre-approval.


    Pre-qualification will give you a good idea about what you can afford, including a loan amount estimate. At Connie Pyo Mortgage, both of these processes can be accomplished over the phone.

  • How much money do I need to buy a house?

    This all depends on the price of the home you want to buy. Standard conventional financing generally requires at least a 5 percent down payment, but there are other conventional loan products available that allow a 3 percent down payment for first time home buyers. Our Federal Housing Administration program allows home buyers to put just 3.5 percent down. 


    There are other costs beyond the down payment, though. You’ll need to factor in closing costs, homeowners insurance, pre-paid interest and property taxes. If you want a better idea of how much you’ll need, reach out to one of our mortgage advisors.

  • What information do I need to provide to obtain a purchase loan?

    We’ll need to see some income-related information, such as:


    • Paystubs for the past month
    • Tax returns and W-2s for the past two years
    • Asset information for the past two months, including bank, mutual fund or stock statements

    This information will give us an idea of how much you can afford, and how much you already have that can go toward your down payment, closing costs and other funds needed to close the loan.


    Depending on the underwriting review, you may need to provide some additional information.

  • How long does it take to buy a home?

    It typically takes 30 to 60 days to make a purchase. It is this time period that dictates when your loan closes. This time period will be agreed upon by both you and the seller.

  • Do I need a home inspection?

    This isn’t required but highly advised. Even though a home might look perfect on the outside, a home inspection will tell you if there are underlying concerns that may cause problems later on. A home inspection can show you if there are problems that may be costly and time-consuming to fix in the future. If there are, you can change your mind, or address the issues with the home seller. At the very least, a home inspection can give you peace of mind in your purchase.


  • What happens at the loan closing?

    When it’s finally time to close the loan, you may meet at a designated settlement office such as a title company or attorney’s office. You will review and sign all documents in the presence of a notary.


    You will also have to pay any remaining fees at the loan closing. This usually includes the down payments and closing costs, and other applicable fees. You have several options to make these payments, including:

    • A certified check
    • A cashier’s check
    • Money wired to the title company

    Your loan processor will walk you through the whole process and give you advice on what needs to be done next. Once all the fees are paid and the documents are recorded, the home is officially yours!


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