The types of non-qualified mortgages we offer are:

 

-Debt Service Coverage Ratio Loans (DSCR): These loans are only for investment properties. The DSCR is basically the ratio of projected rent to the housing payment. The thinking goes that, if the rent will cover the payment, why would the borrower's income matter? DSCR loans thus do not require any income or employment verification. In practice, the rent does not need to wholly cover the housing payment to qualify, but the calculated DSCR affects the loan terms.

 

-Asset-Based Loans: Instead of relying on traditional forms of income to qualify, we can use asset statements to qualify a purchase or refinance. We essentially multiply the total assets by a factor (that can vary) and treat that as the monthly income. If the calculated income is sufficiently large, no actual income is needed to qualify.

 

-Bank Statement Loans: This loan type is commonly used by small business owners. By calculating income from a borrower’s bank statements as opposed to their full tax returns, we can often calculate a significantly higher income amount for qualifying purposes.

 

-1099 Income Loan: Similar to a bank statement loan, but for 1099 employees. By only using a borrower’s 1099s as opposed to their full tax returns, we can often calculate a significantly higher income amount for qualifying purposes.