#Non qm loans meaning plus
#Non qm loans meaning professional

With a SOFR mortgage, a real estate investor starts with a fixed interest rate that stays the same for a period of time and then adjusts every six months based on the 30-day average of the SOFR index.Ī 6 month SOFR DSCR loan allows an investor to take advantage of market rates. A 6 month SOFR DSCR loan has an adjustable rate that changes based on the SOFR index. The Secured Overnight Financing Rate is an index that provides a weighted average of the interest rates that major financial institutions charge for overnight loans. 6 month SOFR DSCR loans are a variation on this financing option where the loan is packaged as an adjustable rate mortgage with an interest rate that changes based on the SOFR index. The loans are made by looking at the potential income that a property could bring, instead of the income that an investor is making right now. NMLS# 1120111Īs mentioned above, DSCR loans are a type of mortgage used by real estate investors to purchase property without having to show proof of income.

Income qualification is based on the rental income of the property. DSCR loans are only valid for non-owner-occupied investment properties Equal Housing Lender. Monthly taxes, insurance, and any HOA dues are not included in the monthly payment example above.

#Non qm loans meaning professional

Contact a Griffin Funding mortgage professional for eligibility information.

#Non qm loans meaning plus

After the initial period, the interest rate and payment will adjust every 6 months based on the sum of the 30-Day Average SOFR index (at 1.70814% as of ) plus a margin of 3.5% up to a maximum initial cap of 2%, subsequent 6-month caps of 1% and lifetime cap of 5%. The interest rate and principal and interest payments are subject to increase after consummation. This loan is an Adjustable Rate Mortgage. 30-year amortized home loans require repayment over the course of 360 months. The APR is 4.657% with standard third-party closing costs, $1,095 Underwriting Fee, $675 Processing Fee, 0% origination, and 2.125% discount points.

No-Income Non-QM DSCR investor loans do not have mortgage insurance premiums and could include a pre-payment penalty.

The principal and interest payment on a $485,000 6-Month SOFR ARM cashout refinance mortgage at an interest rate of 3.875%, a credit score of 720 plus, and 70% loan-to-value (30% down payment) is $2,280.65/mo. Recent Credit Event Loans : A recent credit event loan allows borrowers to qualify for a loan despite recent credit events like bankruptcy, short sale, foreclosure, and divorce so that you can start rebuilding your investment portfolio as soon as possible.During this time, payments only apply to interest, not the principal balance. Interest-Only Loans : Interest-only loans offer investors the option to pay lower monthly payments for the first portion of the loan.These are beneficial for investors who have write-offs and deductions on their taxes that may make lenders believe that they bring in less money than they actually do each month. Bank Statement Loans : A bank statement loan allows investors to verify their income using bank statements instead of tax returns.These loans allow you to use your assets instead of your income to qualify, which means you won’t have to provide a tax return or proof of income. Asset-Based Loans : Asset-based mortgages are another loan product for investors who want to qualify for a loan without taking income into account.