Alt-doc loans are like a puzzle. Unlike traditional or conventional government loans, where guidelines are about 95% the same from one lender to the next, all non-QM lenders have different guidelines. This can make things extremely frustrating, not to mention costly, to borrowers looking to buy a home.
For instance, if doing a bank statement loan, one lender will allow for no reserves but then have a guideline that they can only use 50% of the deposits (and you need about 85% to qualify). In this instance, if you move forward with the lender you typically won’t find out this info until you already applied, paid for inspections and appraisals and have your hopes up that you are getting the home. It is devastating to find that something went wrong and it could have been avoided.
That’s where HP Mortgage comes in. HP Mortgage is a master puzzle solver. We know all of our lenders’ guidelines as if we wrote them ourselves. We do many non-QM loans each month and have been for years. Most loan officers only do them when they have to, and don’t know what to look out for. You can truly only count on a specialist to make sure it gets done the right way.
Another reason to work with a broker specialist is that we can find you the best rate on the market today. For traditional mortgages, rates are the same for the most part, but if they differ it is only by about .25% at the most (but usually .125%). Unlike traditional government loans where pricing barely differs for the same financial situation, non-QM lenders will differ greatly–oftentimes by more than 1%. Having a knowledgeable, experienced, hard-working broker who is on your side is critical if you need a non-QM/non-government loan.
Here are just a few real-world examples that illustrate why you need to work with a specialist that has access to every lender’s programs and competitive rates:
Ex 1: A client had submitted their bank statement loan application to a lender that only uses 50% of the gross deposits, and was denied based off not having enough income. Oftentimes with borrowers who have less than 50% expenses, they need more of their deposits to count towards their income.
HP Mortgage: We can use up to 100% of the gross deposits to qualify.
Ex 2: A borrower with a large down payment and very good credit was not able to qualify for their bank statement loan because they don’t show enough deposits to qualify, even using 100% of the deposits.
HP Mortgage: With a down payment of at least 20% and credit above 650, we can offer a complete no income verified loan on a primary residence.
Ex 3: A borrower submitted an application to refinance their investment property that they only bought 4 months ago. Oftentimes this is not discovered until well into the underwriting process. Most lenders will require the property to be owned for at least 1 year before they can apply.
HP Mortgage: We only need 3 months seasoning to be able to refinance.
Ex 4: A borrower has only owned his business for less than two years but has been in the same field for over two years. Most lenders will want the business opened for 2 years.
HP Mortgage: As long as you are self-employed in the same line of work for 2 years we can get you approved.
Alt docs mortgages are like a puzzle–but they don’t have to be. Contact HP Mortgage today to see how we can get you approved for your alt doc mortgage.