Question about Pre-Approval Process for Non-QM Lenders
Hello, I am in the process of getting a pre-approval before I start my hunt for my first rental property. My mortgage broker is pushing the idea of a non-QM lender being the one who funds this deal. My broker says I can be looking at 10% down and ~5% interest fixed for 30 years.
My question is this, I am very new to this (first time) and I want to make sure that I don't end up with such a high mortgage that I run too close to 0 on net cashflow. I have ~40k to spend total on down payment, closing costs, rehab, etc. I want to use this 40k to buy 2 condo properties to rent out. That being said, if I go conventional (20% down, 30 yr fixed etc.) that means I will not be able to buy 2 properties with my 40k, but I feel like there is benefit that I am not seeing.
This leads me to my overall question: What is your experience using non-QM lenders, and your advice for me?
P.S. I am located in Massachusetts
Thank you in advance!
Most Popular Reply
I've been waiting for some fellow loan originator that I deem credible, either on the phone, in one of our private facebook groups, or somewhere else, to utter words to the effect of: "It was a smooth process, no hiccups, closed on a reasonable 30 day timeline, guidelines were transparent, and overall the investor/buyer/refinancer was happy with the process, minimal 'surprises,' just work with ABC Home Loans for that."
I've been waiting for about 5 years, since non-QM first started pinging the radar. I am still waiting...