The mortgage industry has changed a lot over the last six weeks, due to Coronavirus.
It’s making for some interesting dynamics in the industry as to what’s being offered as well as to those who can or will offer loans at all.
Overall, lenders are tightening up requirements to qualify for loans. Most of the Non-QM lenders went out of business about a month ago or stopped doing Non-QM (Qualified Mortgage) loans altogether. Non QM-loans are loans that use alternative income such as bank statements for self-employed borrowers.
Most big banks have pulled out of offering jumbo loans altogether. Jumbo loans are mortgages used to finance properties that are too expensive ($510,400+ in most counties in the US) for a conventional conforming loan.
We are in a unique situation to be able to offer both Non-QM loans as well as Jumbo loans.
We still have two lenders we work with that are willing and able to offer Non-QM loans.
As for the Jumbo loans, we have a lender that offers great pricing for Jumbo loans, but only on fully-documented taxable income, minimum credit score of 700 and a maximum loan amount of $2.5 million.
We realize there are situations where people still need and would like to get in a home and it requires some alternative form of financing. We are proud to say that we can still help out in many situations.
We can still close loans in less than 30 days at good pricing, typically in the low 3% range on rates for standard conventional loans (3.25% 30 year fixed 3.421% APR).
For Jumbo loans: 3.25% 10 year fixed/30 year amortization at 3.455% APR.
We’re happy to answer any of your questions.