FAQ

WHAT PEOPLE ASK ABOUT STATED INCOME
& HARD MONEY HOME LOANS IN LAS VEGAS

What is the difference between a Qualified Mortgage (QM), better known as a Traditional or Conventional Mortgage and a Non-Qualified (Non-QM) or Non-Traditional Mortgage?

To understand what a non-qualified (Non-QM) mortgage is, you first need to understand what a "qualified mortgage" is:

A "qualified mortgage" meets strict guidelines enforced by the banks and big online lenders that were put in place by the government after the real estate and mortgage crash around 2008 and 2009. These guidelines are about one thing - the verifying of a borrowers' ability to repay the loan. Period.

The "Qualified Mortgage" (QM) Guidelines are:
-No loan term can exceed 30 years (no 40 or 50 year mortgages).
-Points and fees can not exceed 3% of the loan amount.
-The DTI ratio (amount of debt-to-your income as a percentage) and it must not exceed 43% - including your house payment.
-No mortgages that include a balloon payment.
-No interest-only loans.
-No negative-amortization mortgages.

A loan that does not meet each one of these requirements is therefore termed a non-qualified mortgage (also referred to as a non-QM loan).

The main difference between a qualified mortgage and non-qualified mortgage is if whether or not the government will protect the lenders against lawsuits from borrowers who default on their loan and claim "they were taken advantage of or didn't understand the terms. A lender must ensure that a mortgage meets all the QM guidelines, otherwise the government will not defend them in court should they 'step outside these strict rules).

For borrowers who do not meet the qualified mortgage guidelines, they will need to apply for a non-qualified (non-QM) mortgage loan. With access to multiple non-qualified mortgage investors and lenders (which are often called non-prime lenders), we can more than likely find a loan program to fit your specific scenario. We help you get qualified or put you on the path to become qualified with a personal game-plan.

Are Non-Qualified (Non-QM) Mortgages The Same as Subprime?

Back in the early 2000’s, subprime mortgages were all the rage. They were very popular and many people think that they led to the “subprime crash” where credit became tight again.

While non-qualified mortgages are not at all the same as the old subprime – they are similar in that they are not “conforming” mortgages that are overseen and guaranteed by HUD, FNMA or FHLMC.

Yes, they are have more flexibility in guidelines from the traditional mortgages,  unlike the old subprime loans, the borrower still have to prove "the ability to repay" in some fashion. That is the greatest difference between Non-QM and the subprime loans of the early to mid 2000's. Those days are gone.

What Are Hard Money Mortgage Loans?

A hard money loan is any loan secured by a “hard asset” like commercial or residential real estate.  It is sometimes called a bridge loan, private capital loan or private loan.  A hard money loan is a first mortgage on investment real estate.  
A hard money lender looks to the property as the primary collateral as opposed to the borrowers credit score or other factors.  The greatest weight in the approval decision is the property itself. A hard money loan is an alternative to a traditional bank loan.
Borrowers that need a "hard Money" loan are usually borrowers that are credit impaired or time impaired (need to act quickly due to certain circumstances) property impaired (maybe the property is in need of repair or is an "odd" property the banks won't lend on).
Most hard Money Loans are limited to 65% or less loan-to-property-value.

CALL US TODAY FOR A CONFIDENTIAL "OFF-THE-RECORD" CONVERSATION AND SEE IF WE CAN GET YOU ON A PATH TO A HOME LOAN PRE-APPROVAL!

ANOTHER POPULAR PRODUCT IS OUR JUMBO AND SUPER JUMBO LUXURY HOME LOANS LAS VEGAS 

We have seen a growing need for non-traditional, non-conventional mortgages in the luxury high-end home market. Many borrowers in the upper-price ranges have complex and difficult tax returns and multiple sources of income that can be difficult to document. We offer a variety of products to those borrowers making it easier to obtain a mortgage without the "brain damage" that banks, big mortgage companies or online lenders put them through. This is just one of the unique niches for our Las Vegas communities and all over Nevada.

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LAS VEGAS STATED INCOME HOME LOANS & SELF EMPLOYED MORTGAGES LAS VEGAS