/ABOUT
Loans that do not fit the agency box.
Most of what I do does not fit the agency box. That is the practice, not the exception.
WHAT THAT MEANS
Qualifying on something other than a W-2.
A qualified mortgage is documented one way. Two years of tax returns, a W-2 history, and a debt-to-income ratio the agencies recognise. That works for a lot of people. It does not work for a landlord whose returns show depreciation, a business owner whose write-offs are the entire point, someone holding assets rather than income, or a buyer without a Social Security number.
Non-QM is a different set of documents, not a lower bar. The rent a property produces can carry the file. Twelve or twenty-four months of deposits can stand in for returns. A portfolio can be converted into qualifying income. An ITIN can replace an SSN. The underwriting still happens. It looks at what is actually there.
That is most of what crosses my desk, which is why the program list reads the way it does.
Two different things get called asset-based, and they are not interchangeable. Asset depletion converts a portfolio into qualifying income, so the file still runs on a ratio. A DSCR or bridge loan is underwritten on the property itself, and personal income does not enter the calculation at all. If someone has told you that you need one of them, it is worth checking which.
Conventional, FHA, VA and USDA are here too, in select states. If your file fits the ordinary box, that is the cheaper answer and I will say so.
copy pending review by adscompliance@nexalending.com
WHAT I SPECIALISE IN
The non-QM lane, program by program.
Each one exists because a normal file failed for a reason that was not the borrower.
Antoni Pestka. Army veteran and mortgage loan officer, Pinetop Capital.