Access Equity with a Predictable Payment

Fixed Rate Second Mortgage Loan Highlights

• Definition of Non-QM Loans: Non-QM loans do not adhere to the qualified mortgage guidelines established by the Consumer Financial Protection Bureau (CFPB) under the Dodd-Frank Act. As a result, they offer more flexibility in terms of borrower qualification criteria.
• Purpose of Second Mortgage Loans: A second mortgage loan is a loan taken out against the equity in a property that already has an existing mortgage. Borrowers may choose a second mortgage to access additional funds for various purposes such as home improvements, debt consolidation, or other financial needs.
• Property Types Allowed: Non-QM fixed rate second mortgage loan programs typically allow various property types, including primary residences, second homes, and investment properties.
• Maximum Loan-to-Value (LTV): LTV refers to the loan amount as a percentage of the property's appraised value. Non-QM second mortgage loan programs often have maximum LTV ratios ranging from 75% to 90%.
• Qualification Criteria: Non-QM loans typically consider a borrower's overall financial picture, including credit history, income, and assets. While the specific qualification requirements can differ among lenders, these loans may be more accommodating to borrowers with lower credit scores, self-employed individuals, or those with unique financial circumstances.
• Fixed Interest Rates: Non-QM fixed rate second mortgage loans come with a fixed interest rate, meaning that the rate remains constant throughout the loan term. This provides borrowers with predictability and stability in their monthly mortgage payments.
• Documentation and Underwriting: Non-QM loans may require more extensive documentation and a thorough underwriting process compared to traditional mortgage loans. Borrowers should be prepared to provide comprehensive financial documentation to support their loan application.