Expanded Suite of Products / Non QM
GMFS is excited to offer Expanded Products! These products allow for borrowers who may not be eligible for traditional conventional loans to qualify, especially self-employed borrowers and those with sufficient assets to cover a loan.
Expanded Suite of Products include the Expanded Prime Program, Non-Prime Program and the DSCR Program. These products complement our current Expanded Line that are targeted towards Non-QM borrowers. GMFS offers Bank statement Options, Asset Utilization Features, Non-Warrantable Condos and much more.
Expanded Suite Features
- Personal & Business Bank Statements with the use of 1099’s
- Loan amounts up to $3 Million
- DTI up to 50%
- 1-Year Tax Return and W-2 Doc Options
- Investors with greater than 10 properties
- Non-Warrantable Condos
- Prior Foreclosure or Bankruptcy
- Up to 90% LTV
- No MI
- Interest Only options for Fixed and ARMs
- Prepayment Penalty for Investment Properties that Offer More Attractive Pricing
- 5/6 SOFR ARM
DSCR for Investment Borrowers
- Qualification Based on Cash Flow from Subject Property only
- 680 minimum FICO
- Loan Amounts up to $2M
- Purchase & Rate and Term LTV up to 80%
- Cash out LTV up 75%
- 0 X 30 X 12 Mortgage History Acceptable
- No DTI / DSCR ratio down to .75 (purchase only), 1.00 required for refinances
- 30 year fixed, 30 year fixed I/O, 5/6 ARM, and 5/6 ARM I/O
Scenarios
Qualify Investors Using Interest-Only Payment
Scenario:- Borrower is refinancing an investment property.
- When the 1007 rent schedule was received, the borrower’s DSCR ratio using a 30-year Fixed PITIA was calculated at 92.
- Problem: A refinance requires a minimum DSCR Ratio of 1.00 or above.
- Solution: Utilizing 30 YR with a 10YR interest-only feature, borrowers can qualify using the lower interest-only payment
Expanded DSCR Product is one of the most utilized loan solutions for real estate investors.
Questions? [email protected]
Gift Funds CAN be accepted
Scenario:- A borrower is purchasing their first investment property.
- They have saved a 10% down payment.
- They are getting a gift for an additional 15% down payment, the closing cost and reserves.
Problem: Conforming products would not allow gift funds to be used on investment properties. The borrower’s fico is 744, and the debt ratio is 38%.
Solution:
- Non-QM Expanded-Prime, Non-Prime, and DSCR solutions ALL allow a borrower to use gift funds to purchase investment properties.
- The borrower was able to purchase their first investment property. The originator saved the day, earned commission, and now has a real estate investor who will be back to close the next deal.
Questions? [email protected]
1 Year P&L Documentation for Self Employed Borrowers
Scenario:- A borrower has been self-employed for over two years wants to purchase a new home
- They have a 20% down payment, FICO 692
- Loan Amount is $950,000
Problem: After analyzing the borrower’s tax return, the debt-to-income ratio for this purchase is 63%.
Solution:
- Non-QM Expanded-Prime allows P&L documentation! We easily calculate income using their 1-year P&L statement.
- Based on the net income on the P&L, the borrower’s debt-to-income ratio is 48%. This is within the 50 % debt-to-income ratio our Expanded-Prime product allows
Questions? [email protected]