Have non- QM loans came back?

Question

have non-QM loans come back?

Brian Garrett · Answer

Yes they’ve been back for a while now. They aren’t the same as before 2008 but there are bank statement loans and other products in the marketplace that don’t require tax returns, etc.

Timothy Hero · Answer

I have 3 lenders on my list who are back to 75% LTV cash-out and 80% for purchase. However, you are correct on escrow. Most 12 months right now. Pre-pandemic, the number was usually 3-6 months.

Eric Goldman · Answer

non qm has been back for months. Lower LTVS but things are getting better weekly. some still have crazy guidelines like 6-12m pitia needed in escrow. (brought on by covid-19) some have been getting pretty competitive rate and fee wise.

Timothy Hero · Answer

Usually $100k with a minimum property value in the $125k range.

Timothy Hero · Answer

But to answer your question, yes. The non-qm sector is back.

It's back to 75% LTV for cash-out and pre-pandemic, lenders were loaning 75% LTV cash-out at around 5-5.25% for a 30-year fixed mortgage. The rates are right back to where they were before.

Only difference is lenders have raised the minimum credit requirements to 680, compared to the previous 650.

Timothy Hero · Answer

Not sure what stories you've heard, lol. The longest non-qm deal for me was 35 days. 45 days if a portfolio. Usually it's 25-30 days.

Chris Mason · Answer

The chitter chatter and marketing for them has come back. Both directed at me, and directed at consumers.

Loan originators saying "omg this post-2020 non-qm product lineup is super great, I made multiple dreams come true this month, and lots of people are happy with me right now (and do not hate me for very slooooowly over 75 days pulling their teeth without pain killers)!!!", in the relevant private forums, among the folks that I know, and the facebook groups, has not.

The former is a measure of hype, the latter is a measure of reality.

You can do you of course, but I do not update my cell phone the second it tells me to. I wait a week to see if other peoples' cell phone are catching fire, and then consider it. For now, we do indeed have some phones catching fire, but not a whole lot of success stories.

Good luck! (And keep a fire extinguisher handy.)

Joe S. · Answer

Thanks so much for the information. Is there a minimum loan amount?

Joe S. · Answer

Do you know of any that are doing smaller minimums?

Have non- QM loans came back?

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