Not a Typical Borrower?
Virtually all of the information today that is available on internet searches or typical lender loan sites focuses on typical borrowers. These borrowers land mainly in the buckets of conventional (FNMA/FHLMC), FHA, or VA loans. But what if you aren’t a typical borrower? Perhaps income is highly variable. You may run your own business and have complicated finances. Do you have a have a high dollar home and need a jumbo loan. What if you just live in a ghi dollar area/zip code? Do you need a mortgage with different characteristics? These mortgages might fall into a category termed “non-QM.” QM means a Qualifying Mortgage. Non-QM is everything else. But Qualifying for what?
QM provides a “safe harbor” for lenders for normal mortgages if the lender follows certain guidelines and obtains the required documents. It eliminates or lessens many regulatory risks or risks of “defective” mortgages for the lender. The defective term does not mean unenforceable against the borrower. It only means it may not be eligible to be purchased by certain other buyers. The reason comes from risk or limits of liability from the borrower claiming the borrower couldn’t afford the mortgage. Non-QM mortgages may have higher interest rates or looser underwriting standards.
Alternative Mortgages
mywinningmortgage.com does not recommend specific lenders, provide referrals or receive any compensation. So any discussion of lenders is informational for you, not to make a buck. Who do you go to when you aren’t a typical borrower? Perhaps you have credit issues? You can find guidance in the book Winning Mortgage, Winning Home.
But new products arise every day. Need a Jumbo loan (a jumbo loan exceeds FNMA, FHLMC and HUD/FHA dollar limits) up to $2 million and 89.99% loan to value. There was a new product launched for that in March 2021. Don’t know the dollar limit of FNMA, FHLMC and HUD/FHA? Check out the book to guide you through what to do.
Have you reached 60 and looking to cut back on hours worked but not ready for full retirement? You can’t take out a reverse mortgage yet to help pay the bills or decrease your monthly costs. How about a hybrid where your payments are ½ to 1/3 of your current payments for 10 years? It then converts to a reverse mortgage or you can refinance. There’s a new product launching for that. Who do you go to in order to get this information? Follow up at mywinningmortgage.com and spread the word to others.