Non-QM Loans in Virginia
Are you self-employed, an entrepreneur, or someone with a unique financial situation? A Non-Qualified Mortgage (Non-QM) loan might be the perfect solution for you. Unlike traditional mortgages, Non-QM loans offer flexibility in income verification and are designed to meet the needs of borrowers who may not fit the standard loan criteria.
Whether you’ve faced credit challenges or have unconventional income streams, Non-QM loans provide an opportunity to achieve your homeownership goals in Virginia’s diverse and dynamic real estate market.
Ready to learn more about Non-QM Loans or explore your options? Get started today!
How Are Non-QM Loans Different From QM Loans?
Non-QM loans differ from Qualified Mortgages (QM) in that they allow for alternative income verification methods, such as bank statements or asset-based qualifications, instead of the traditional documentation required for QM loans.
While QM loans provide a safe harbor for lenders and adhere to strict federal guidelines, Non-QM loans offer more flexibility, making them accessible to borrowers with non-traditional financial profiles.
Why Choose Non-QM Loans in Virginia?
Virginia’s real estate market is as diverse as its residents. Non-QM loans are particularly beneficial in this region, where many individuals have unique financial situations. From self-employed entrepreneurs in Richmond to retirees in Northern Virginia, Non-QM loans offer tailored solutions that reflect the distinct needs of Virginians. We’ve helped countless clients across the state secure their dream homes, even when traditional financing wasn’t an option.
Here are some of the benefits of Non QM Mortgage:
- Ideal for self-employed and for people with non-traditional financial circumstances
- Alternative income verification methods accepted
- Multiple fixed and adjustable loan options
- Loan maximum as high as $2.5 million
- Cash-out as high as $500,000
- Second homes and investment properties may be eligible
- A Non-QM loan allows you to diversify your investments. It maintains the liquidity of your assets instead of pouring all your cash into a real estate purchase
- Mortgage interest payments with a Non-QM loan can be deducted each year on your income taxes. Consult a tax advisor for financial or tax advice.
- Non-QM loans may further protect you from unexpected downturns in the market. This can keep you from losing a financial investment.
Types of Non-QM Loans We Offer in Virginia
Stated Home Loans
Stated home loans are also known as stated income loans. Our stated home loans allow borrowers to qualify for a mortgage without providing traditional income verification like tax returns or W-2s. Instead, the borrower “states” their income, and the lender relies on other factors, such as credit score and assets, to assess eligibility. These loans are especially useful for self-employed individuals or those with irregular income streams, where traditional documentation may not accurately reflect their earning capacity. While convenient, stated home loans often come with higher interest rates and stricter terms.
Asset-Based Loans
Asset-based loans allow you to leverage your existing assets, such as checking and savings accounts, investment portfolios, or money market accounts, to secure financing. This type of non-QM mortgage is perfect for individuals with substantial liquid assets who want to avoid pledging them as collateral. Our asset-based loans provide a straightforward way to access the funds you need, backed by the value of your assets.
Jumbo Loans with 10% Down
Traditional jumbo loans typically require a 20% down payment, but we offer near-miss jumbo loans with as little as 10% down, for loans up to $3 million. With a debt-to-income ratio of up to 43% and credit scores as low as 680, these jumbo loans are ideal for first-time buyers who may have large student loans or other types of “good credit debt.” High-income earners looking to invest their cash elsewhere will also find this option appealing.
Foreign National Loans (ITIN)
You don’t need a Social Security number, U.S. FICO score, or even an Individual Tax Identification Number (ITIN) to qualify for a non-QM loan. Our Foreign National Loans require a visa or visa waiver and three active and open trade lines with a two-year history. This loan option makes it easier for non-U.S. citizens to invest in real estate.
Interest-Only Home Loans
Our interest-only home loans offer significant flexibility, with options available for 40-year fixed loans, 30-year fixed loans, and adjustable-rate mortgages (ARMs) with terms of 7, 5, 1 year, and 6 months. During the first 10 years of the loan, you’ll only pay the interest, leading to considerable savings. However, it’s important to note that the principal balance remains unchanged during the interest-only period.
Other Custom Loan Solutions
Our Other Custom Loan Solutions are designed to meet the unique needs of each borrower. Whether you require specialized financing or a tailored repayment plan, we work closely with you to create a mortgage solution that aligns with your financial goals. Flexibility and personalization are at the heart of our offerings
Eligibility Criteria for Non-QM Loans in Virginia
- As much as 20% or more Down Payment
- Credit Scores starting at 620
- Low DTI typically under 43%
- Two years self-employed required
Our Non-QM Loan Process in Virginia
Start with a personalized consultation to discuss your financial situation and homeownership goals.
Application Process:
- Connect with a lender : Contact a Loan Officer to discuss your financing requirements and begin the process.
- Collect the required documents : Before applying for a non-QM loan, acquire all necessary evidence, such as proof of income, tax returns, and bank statements. Prepare to offer additional paperwork to support your earnings and work history.
- Submit your application : Begin your loan application by filling out the required forms. The DML App allows you to apply conveniently and securely from your desktop or mobile phone.
- Obtain pre-approval : After you submit your application, your loan officer will analyze it and offer you a pre-approval letter. This letter specifies the acceptable loan amount, interest rate, and other important loan details.
- Search for a property : Now that you have your pre-approval, you can start looking for a property that meets your criteria and budget. Working with a real estate agent can help make the process go more smoothly.
- Close the loan : After identifying a suitable property and agreeing on a purchase price, the lender will perform a final underwriting review and issue a loan commitment letter. Upon receipt, proceed to finalize the loan and take ownership of your new house.
Once approved, we’ll move swiftly to funding, with a clear timeline to keep you informed every step of the way.
FAQ
They could be. Features such as interest-only payments or balloon payments may raise the likelihood of default. However, they also provide the flexibility that some borrowers may require. It’s critical to speak with your NMB Loan Officer to select the best home loan program for you.
Yes, non-QM loans can be tailored to overseas nationals, typically without needing U.S. income documentation or a Social Security number.
Yes, Non-QM loans are designed to be safe for borrowers, with terms that suit their financial profiles.
The biggest drawback of reverse mortgages is fees and interest can add up, reducing the amount of equity left in the home, and it can affect eligibility for certain government programs.
The loan is repaid when the homeowner sells the home, moves out permanently, or passes away.
Why Choose United 1 Mortgage for Non-QM Loans in Virginia?
With years of experience in the Virginia market, we understand the unique needs of our clients. Our team is dedicated to providing personalized service, ensuring that you find the right mortgage solution tailored to your situation. Our local expertise and commitment to customer satisfaction make us the best choice for Non-QM loans in Virginia. Reach out to us today to get started on your homeownership journey.