Non QM LOANS

If you’re self-employed, a Non-QM loan in Texas could be an ideal option for you. These loans are tailored for individuals with unique income scenarios—such as entrepreneurs, independent business owners, and contractors—and offer flexibility. Non-QM loans in Texas are not bound by the stringent income verification rules of traditional loans set by the Consumer Financial Protection Bureau. This makes them an adaptable choice for those with unconventional income patterns or major credit incidents like bankruptcy or foreclosure.

A Non-QM loan in Texas offers flexible income verification alternatives to the standard methods used by traditional QM loans, making it easier for borrowers in Texas to qualify for a mortgage. Since these loans are not backed by government agencies like the FHA or Fannie Mae, they provide unique lending options without standard government support.

Self-employed individuals in Texas often face challenges securing traditional mortgages due to irregular income and multiple income sources. They may opt for loans based on bank statements rather than tax returns.

Prime borrowers with excellent credit who prefer options like interest-only payments or have a higher debt-to-income ratio find Non-QM loans appealing.

Near-prime or non-prime borrowers—such as those with limited credit history, recent bankruptcy, or a distressed property sale—are also good candidates for Non-QM loans.

Borrowers in Texas with significant assets and strong credit might choose a Non-QM loan to maintain cash flow flexibility instead of purchasing a home outright.

Non-QM loans are ideal for homebuyers who don’t have traditional income proof required for a conventional loan in Texas, which adheres to strict federal guidelines. These loans use alternative income verification methods to help more people qualify for a mortgage. Features like longer loan terms and interest-only payments can also aid in qualification. Remember, terms vary by lender, so it’s important to review your specific agreement carefully.

One-Year Tax Return Program

• Requires personal and business tax returns from the past year, including all related schedules.
• Often necessitates a signed Profit and Loss statement for the business.

12-Month Bank Statement Program

• Accepts personal or business bank statements.
• Requires a Profit and Loss statement for the last 12 months or the previous year, plus year-to-date figures.

Asset Qualifier Program (for purchasing or refinancing primary or second homes)

• Requires 60 days of account history.
• Allows 100% of vested retirement assets for borrowers over 59½ years old and 70% for those under 59½.
• Calculates eligibility using a 3% rate of return on assets, amortized over seven years.