Most homeowners opt for traditional mortgage loans, but those who are non-traditional mortgage applicants need a unique home loan option that is tailored to their non-traditional financing needs.
At Brandywine Valley Mortgage, we understand that no two clients are the same, and every client has unique needs and loan programs. That is why we are proud to offer a wide range of nontraditional loan programs for things like multifamily properties, non-QM loans or self-employed borrowers who are looking to purchase a home.
Each loan program comes with unique requirements, and we are here to present you all your options. Let’s walk through some of the non qualified mortgages or non-traditional mortgage programs that could help you.
Understanding Non-QM Financing
Non-Qualifying Mortgage (Non-QM) financing offers different loan options that are suitable for different financial situations. Unlike traditional qualified mortgages that have strict rules set by the Consumer Financial Protection Bureau, non-QM loans have more flexible criteria for approval and can be a great financing option for special situations.
People who benefit most from non-QM financing often have unconventional income sources, like self-employed borrowers or gig workers. Non-QM loans can also help those with a higher debt-to-income ratio or individuals with a poor credit history, such as bankruptcy or foreclosure, on their record. Non-QM loans require more money as a down payment than a qualified mortgage, but you will benefit from added flexibility and looser underwriting guidelines.
Multifamily Loans: A Strategic Investment Opportunity
Another type of financing that falls in the non-traditional space is multifamily loans. Brandywine Valley Mortgage is here to present different multifamily loan options for clients looking to build their real estate portfolio or purchase investment properties.
If you are thinking about investing in real estate, one way to do that is by purchasing or refinancing a multi-unit property using a multifamily loan. With this type of loan, you can invest in a range of properties, from small apartment buildings with just a couple of units to larger complexes that have hundreds of units. By owning a multi-unit property, you can earn rental income from several units at once, which can help you build equity in the property over time.
If you are considering investing in a multifamily property or are looking for guidance on multifamily financing, call our team of expert mortgage brokers. At Brandywine Valley Mortgage, we have years of experience and expertise to simplify your multifamily loan process.
We will guide you through the loan options, interest rates, and terms and make sure you have all the information you need to make a confident decision. As an experienced mortgage brokerage, we want to work with real estate investors to give them confidence and assurance they are making a smart financial investment.
FHA Loans: Making Homeownership Attainable
If you are a first-time homebuyer or have a lower credit score, you may want to explore the option of Federal Housing Administration (FHA) Loans.
An FHA Loan is a government-backed home loan option designed to help individuals with lower income or less-than-perfect credit purchase a home despite their financial situation. FHA Loans are characterized by lower minimum down payment requirements and flexible qualifying guidelines, making them an excellent option for homebuyers who might struggle to qualify for conventional loans.
We can help you explore different FHA loan options to ensure you can afford loan payments and review interest rates. With a lower down payment, your monthly mortgage payments might be slightly higher, but you do not have to save up cash in order to purchase the home.
From calculating potential mortgage payment amounts to guiding you through the application, we are here every step of the way for first-time homebuyers looking to get an FHA loan.
Interest-only mortgage payments
Another less common type of mortgage option is an interest-only loan. This type of loan allows you to make lower monthly payments initially by paying only the interest owed on the loan during a specific period, usually between 5 and 10 years. After this initial period, the loan structure shifts, and you will have to pay both principal and interest. Once that initial loan period is up, your monthly mortgage payment will increase to include the principal amount.
Interest-only mortgage loans can be a tempting choice for specific borrowers, like those who expect a significant increase in their income in the future or those who would rather have flexibility during the initial interest-only phase. We can walk you through the pros and cons of getting an interest-only loan and what is required during the application process.
Brandywine Valley Mortgage: Your Partner in All Your Mortgage Needs
At Brandywine Valley Mortgage, our clients are the heart of everything we do. No matter your unique financial situation, we can help you find the loan option that makes sense for your purchase. We will present you with all the available loan options, including non-QM financing, multifamily loans, FHA loans and more to make your home purchase as seamless and stress-free as possible.
Whether you are a first-time homebuyer, real estate investor or looking to explore your refinancing options, Brandywine Valley Mortgage is committed to helping you navigate your mortgage journey with expertise, clarity, and personal attention.
Contact us today to learn more about how we can assist you with your next real estate purchase!