by Josh Claudio, Residential Mortgage Loan Originator
There are a lot of options when it comes to jumbo financing but when your scenario doesn’t fit within traditional mortgage guidelines then what are your options? Unbeknownst to most consumers there are a # of banks and investors that have an appetite for unique financing solutions. The first thing you will need is a good lender that is hip to these programs and has access to these lenders and investors. Assuming that you are working with myself or another mortgage professional then accessing these programs will not be an issue and you can finance your new luxury Dallas property versus parting with a large chunk of your assets to be a cash buyer. These non-traditional loan programs are known as AltQM or non-QM loans.
Popular Exotic Mortgage Loan Programs
Bank Statement Program
This is for the buyer that makes money but doesn’t show it on paper so the solution is that this program allows for your monthly bank statement deposits to be used as your qualifying income versus the traditional route of documenting income with paystubs, W2s, and tax returns.
Guidelines allow the following:
- Allows for credit scores as low as 680.
- Allows for loan amounts up to $3,000,000.
- Allows as little as 20% down up to $750,000, 30% down from $750,001 to $2,000,000 and 50% down from $2,000,001 to $3,000,000.
Select Non-QM Program
Features of this program are as follows:
- Allows for credit scores as low as 661. Most jumbo lenders require a 700 or higher credit score. Also allows up to 1 30 day late mortgage payment in the last 12 months.
- Allows for non-warrantable condos. Non-warrantable condos are condos that have commercial space within the same building. An example of this type of condo would be Museum Tower.
These are two of the more popular exotic loan programs available since they overcome the more common barriers required to finance higher end homes include documenting income or having mediocre credit.
I hope you find this information helpful if you would like to further discuss please call me, Josh Claudio with SWBC Mortgage Oak Group at 214-403-6092.
*there are additional guidelines that must be met to qualify for these programs.