FundLoans - Blog

Recently Funded Standalone 2nd Business Bank Statement Loan

Jon Maddux — Tue, 15 Aug 2023 22:51:31 GMT

This borrower was able to qualify using business bank statements from their lucrative medical practice to take advantage of their equity on an owner occupied home valued at over $12M. Though the borrower had a low-rate conventional 1st position lien, the FundLoans Non-QM 2nd Position Lien allowed them to access additional cash without touching the low rate.

Recently Funded $5,590,000 24-Month Business Bank Statement Loan

Jon Maddux — Tue, 08 Aug 2023 17:00:00 GMT

This borrower scored their own piece of paradise - a stunning new construction high-rise condo nestled in the heart of Sunny Isles Beach, FL.

$3 Million Alt-Doc Refinance on a 2nd Home

Jon Maddux — Tue, 25 Jul 2023 17:02:00 GMT

The key factor with this loan was that the self-employed borrower was able to do a rate & term refinance in this high-rate market. We used a CPA letter with a 10% expense on the borrower’s interior design business to qualify them for a $3 million loan on their vacation home on the Florida Gulf Coast.

Loan Details:
Loan Program: Apex Prime - Alt-Doc Program
Loan Amount: $3,000,0000
Transaction Type: R/T Refinance
Property Type: SFR
Occupancy: 2nd home
Loan Term: 30-year fixed

Recently Funded DSCR No Ratio Loan Closed in 15 Days

Jon Maddux — Tue, 18 Jul 2023 15:30:00 GMT

This borrower is an experienced investor with multiple investment properties who was looking to access the equity from one of his homes to reinvest and upgrade his portfolio of real estate. This DSCR loan helped him do that. FundLoans' Spectrum No Ratio Program can go all the way down to zero DSCR. Try our calculator too.

Recently Funded $1,350,000 Bank Statement Loan

Jon Maddux — Tue, 11 Jul 2023 16:37:42 GMT

With a diverse portfolio of successful businesses, including a mortgage brokerage, this borrower presented us with a unique challenge. Not only did we assist him in promptly settling an impending construction loan, but we also facilitated a substantial cash-out opportunity. To make this happen, we qualified him with bank statement accounts from two of his businesses. We made a special exception to qualify this rural property with bank statements, driven by the compensating factors of his low LTV and an impeccable FICO score.

Common Misconceptions About Non-QM Lending

Jon Maddux — Wed, 14 Jun 2023 23:59:55 GMT

In the world of mortgage lending, non-QM (Non-Qualified Mortgage) loans have rapidly gained popularity in recent years. However, misconceptions about this alternative lending option persist, leading to confusion and hesitancy among borrowers and even mortgage brokers. This blog post sheds light on some common misconceptions surrounding non-QM lending and provides useful information to dispel them. By understanding the truth about non-QM loans, brokers and loan officers can make informed decisions and explore viable options that suit their borrowers’ unique financial situations, especially self-employed business owners.

Why Mortgage Brokers Should Consider Non-QM Loans for Self-Employed Borrowers

Jon Maddux — Fri, 03 Feb 2023 02:00:24 GMT

Why Mortgage Brokers Should Consider Non-QM Loans for Self-Employed Borrowers

Non-QM loans are becoming an increasingly popular option for mortgage brokers helping self-employed business owners. These borrowers might not fit the traditional underwriting guidelines of a qualified mortgage, so non-qualified (non-QM) loans offer more flexibility and leniency for their financial situations, such as fluctuating income or a high level of debt.

The Basics of Non-QM Lending and its Role in the Mortgage Industry

Jon Maddux — Wed, 18 Jan 2023 00:48:42 GMT

The Basics of Non-QM Lending and its Role in the Mortgage Industry

Non-QM lending, or non-qualified mortgage lending, refers to a type of mortgage lending that falls outside of traditional, government-backed conforming loans. These types of loans are designed for borrowers who may not meet the strict income and credit requirements of a traditional mortgage but should still be able to repay the loan. These types of loans often work well for self-employed borrowers.

Traditional Lending vs. Non-QM Lending

The mortgage industry has traditionally relied on conforming loans, which are backed by government agencies like Fannie Mae and Freddie Mac. These loans have strict guidelines for income, credit score, and debt-to-income ratio, which can make it difficult for some individuals to qualify. Non-QM loans, on the other hand, offer more flexibility in these areas and can help borrowers who may not qualify for a conventional loan.

The Benefits of Non-QM Lending

One of the main benefits of non-QM lending is that it allows for more borrowers to enter the housing market. This can help to increase homeownership rates and provide a boost to the economy by increasing demand for housing. Additionally, non-QM loans can also help those who had a financial hardship in the past, such as a job loss, medical emergency, or bankruptcy to get back on their feet.

Another benefit of non-QM lending is that it can provide more options for self-employed borrowers and real estate investors. For example, a bank statement loan, which is a type of non-QM mortgage, can help self-employed borrowers who can't prove their income with traditional pay stubs and W-2 forms. Instead, they can qualify with bank statements or profit and loss statements. Non-QM lenders also offer DSCR loans that can make it easier for real estate investors to qualify for a non-owner-occupied loan.

The Risks of Non-QM Loans

It's important to note that non-QM lending is not for everyone. The lack of government backing means that these types of mortgages carry a higher level of risk for lenders, and as a result, they may have higher interest rates and stricter underwriting guidelines. It’s important for borrowers to be aware of loan terms and conditions to have a clear understanding of the risks and benefits before proceeding. FundLoans was founded as an exception-based lender whose in-house underwriters consider each borrower’s situation to see what could work to get them a loan.

In Conclusion

Non-QM lending offers an important alternative to traditional mortgage lending that can help more borrowers become homeowners and provides more options for real estate investors and self-employed professionals. Non-QM loans can be a valuable tool for borrowers who may not qualify for a conventional loan.

Have you Checked FundLoans Quick Pricer?

Jon Maddux — Wed, 29 Jun 2022 20:52:52 GMT

FundLoans' Quick Pricer offers straightforward pricing for our mortgage products to help mortgage brokers have discussions with their borrowers. This simple, user-friendly tool provides quick non-binding quotes allowing for spontaneous, one-on-one interactions. Create and send multiple pricing scenarios, educating the borrower and driving them into a loan application.

How to Grow Your Pipeline in a Rising Rate Market

Jon Maddux — Fri, 24 Jun 2022 17:17:21 GMT

Many mortgage brokers are starting to find they have fewer deals in their pipeline as the market supply shrinks and rates rise.