Case Studies: Non-QM
Cash-out Refinance
Property Value: $5.6MM
Utilization: Owner Occupied Primary Residence
FICO: 728
Loan Amount: $3.3MM
Program: P/L Program
DTI Ratio: 28%
Type of Mortgage: 30 year fixed-rate mortgage
Interest Rate: 7.75%
Hurdle:
In this case, the borrower required a loan amount exceeding our standard Non-QM limits. As a permanent resident without a U.S. income source, their qualifying income was derived entirely from businesses owned overseas. We were able to structure a solution that met their unique financing needs.
Result:
The P&L program was used to verify income through a CPA letter from an overseas accountant, detailing 12 months of operating income from the borrower’s businesses. The DTI ratio was calculated based on the income stated in the letter. An exception approval was also secured for a loan amount exceeding the standard $3 million Non-QM limit.
Non-QM
Property Location: Westfield, NJ
Appraisal Value: $915K
Loan Amount: $630K
Purpose: Cash-out
Loan Program: Asset Depletion (Utilization) Program
Assets Utilized: Balance in 401K Account
LTV: 70%
FICO: 800
Interest Rate: 8.875%
APR: 9.122%
Term: 30 Year First Lien
PPP: N/A
Hurdle:
In this case, the borrower had recently lost his job and had no other income source. He was in the process of divorcing and needed access to funds without selling his primary residence. With no additional real estate assets to leverage, a creative financing solution was required to meet his immediate needs.
Result:
We utilized the assets under the borrower’s 401k program to underwrite the loan without the requirement of additional income source. The borrower was able to access cash from a cash-out refinance without having to sell their primary residence.
