With Conventional rates on the rise again, now is a perfect time to reconsider Non-QM mortgages if you have been waiting or reluctant. The fact is that Non-QM loans from A&D Mortgage are good-performing loans that help the mortgage industry by allowing borrowers who miss traditional financing to qualify for potential homeownership at competitive rates. Non-QM borrowers are no different than conventional borrowers – and in most cases are identical in their ability to repay and put down 20% – but are looking for a loan higher than conforming loan limits.
However, the pandemic has affected many borrowers’ ability to qualify for conventional loans. and our Non-QM programs help to alleviate that, especially for small businesses and self-employed or gig economy workers. We offer a wide range of programs – DSCR, 12- and 24-month bank statements, 1- and 2-year P&Ls – designed to help you save money by refinancing or buying a home to live in or invest in.
Why is now a suitable time to reconsider Non-QM? A recent article on MPA.com shows that:
Up to 65 million workers have filed for unemployment since the start of COVID-19
About half of those who lost their jobs are employed again
More than 2,000,000 homeowners are in forbearance and another 1,000,000 were already in some stage of default prior to the pandemic
About 30 million self-employed borrowers comprise the “gig” economy
For people with income disruptions that happened between 13-24 months, a 12-month bank statement loan could benefit them because they need to only show a consistent and steady income for the past year. In addition, with this type of loan, any pre-pandemic employment or income gaps 2 years ago become irrelevant. If your borrower has saved money during the pandemic, they could acquire an investment property with a DSCR loan, which requires no income documentation whatsoever. Lastly, if your borrower is coming out of a forbearance plan, they only need to show 3 consecutive payments to qualify for a Non-QM loan. These are just a few examples where A&D could close your loan with a Non-QM mortgage.
The bottom line is that you will need to work with a trusted lender accustomed to handling these unconventional situations – credit issues, irregular income streams with extra documentation requirements — with speed, flexibility, and a solid understanding of available Non-QM options. You need A&D.
Call A&D Mortgage at 1-855-235-6267 or visit www.admortgage.com to learn more about why Non-QM mortgages are a viable option in a rising conventional rate environment.
As A&D Mortgage’s Communications Manager. Carl Holman has more than 20 years of expertise in marketing, media relations, and communications, having spent 10 years of his career in mortgage lending and real estate. He holds a Bachelor’s in Journalism and Mass Communications from the University of South Carolina.