Are you itching to get into property investing but unable to qualify for a loan? If you’re considered self-employed, you may not be able to use W-2s or pay stubs that lenders typically rely on to measure a borrower’s ability to repay a traditional loan.
Don’t worry, though! You still have options. LendSure offers non-qualified mortgages, also called Non-QM loans, specifically designed to serve borrowers who don’t meet traditional lending requirements.
Non-QM Loans vs Conforming Loans
Non-QM loans offer a different path to qualification. They do not adhere to the stringent documentation requirements of the Consumer Financial Protection Bureau (CFPB)–though they are still subject to consumer protections like the Ability-To-Repay rule. This flexibility makes them more accessible to a broader spectrum of investors, which can make them a preferred choice for many.
On the other hand, conforming loans, tied to Fannie Mae and Freddie Mac guidelines, require borrowers to have high credit scores, a stable income, and a low debt-to-income ratio. Unlike non-QM loans, conforming loans offer less flexibility.
The Benefits of Non-QM Loans
Non-QM loans can be the key to funding a dream property for real estate investors and self-employed borrowers like you. Here are some benefits:
- Borrowers can use alternative income documentation, such as profit and loss statements (P&L), bank statements, rental income, qualifying assets, or 1099s
- The debt-to-income ratio (this determines your borrowing risk by showing how much of your monthly income is used to pay your debts) can be higher than the conventional standard
- Qualification is possible even for those who recently experienced a significant credit event
- Fewer restrictions on condos, with consideration to non-warrantable and even condotels/condo hotels
- They offer more flexible terms
- Pre-underwriting is typically done within 48 hours
- They give you more ways to say “yes” to your future
Who Should Consider A Non-QM Loan?
- Contractors
- Self-employed
- Retired
- Gig workers
- Landlords
- Foreign nationals
- Real Estate Investors
LendSure’s Non-QM Loan Options
- Foreign National Loans: These are for non-residents investing in property located in the U.S.
- Jumbo Loans: Ideal for loan amounts exceeding standard limits.
- Bridge Loans: Secure your dream home prior to selling your previous one.
- Condotel Loans: Financing for individual condo units in hotel complexes. Perfect for those planning to invest in vacation real estate that can also yield rental income.
- Non-Warrantable Condo Loans: Financing option for unconventional properties.
- Investor Cash Flow Loans (DSCR): A different way to secure financing on your next investment property, focusing on property cash flow, so no other income documents are required.
- Fix & Flip Loans: Empowering both seasoned and new property flippers.
- Investor Loans: Get higher loan amounts (up to $1.5MM) for investment properties.
- Bank Statement Loans: A mortgage solution without the need for tax returns, ideal for self-employed individuals.
Why LendSure?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we say yes more often to today’s homeowners and investors.
