Rodney Mason

Non-QM loans use expanded home financing criteria to give borrowers income and credit flexibility. From qualifying with bank statements or 1099 income to purchasing investment properties, Non-QM loans open doors to homeownership many don’t realize are available.

Also known as Investor Cash Flow loans, DSCR loans are designed to help real estate investors secure financing with their rental property’s cash flow. Instead of relying on personal income, DSCR loans use the debt service coverage ratio (DSCR) to qualify.

DSCR is calculated by dividing the monthly rental income by principle, interest, property taxes, homeowners insurance and association dues.

Since Non-QM loans don’t follow traditional guidelines, they’re considered riskier. That’s why lenders often require a higher down payment, interest rate and other terms.

But Non-QM loans are a safe financing option that benefits many homebuyers. Talk to a CCM loan officer to learn what’s right for you.

Bank Statement loans allow you to qualify for a mortgage using your bank statements instead of tax returns. These loans are designed for borrowers who have strong credit and finances but don’t have traditional income, like self-employed workers.

To qualify, you’ll use the average of your deposits over a 12- or 24-month period. If your work doesn’t provide a W-2, this may be the loan for you.

ITIN loans give you a way to qualify for home financing without a Social Security number. Instead, your Individual Tax Identification Number (ITIN) makes homeownership possible.

At CrossCountry Mortgage, we provide numerous ways to qualify using an ITIN. Bank statements, liquid assets, 1099 income and more can all be used to buy a home with our ITIN loan.

No. Conventional loans follow criteria established by the Consumer Financial Protection Bureau (CFPB). Non-QM loans use different standards that provide flexibility for borrowers who may not meet conventional requirements due to the type of home being purchased, financial circumstances or non-traditional income or employment.

1. Contact your CCM loan officer to find the right renovation loan.
2. Complete a loan application with required documentation.
3. Choose a reputable contractor and review your project in person.
4. Provide the contractor’s estimates and validation documents to verify their qualifications.
5. Complete underwriting for review of all your loan documents.
6. Close your loan and start your renovation.

• Cost factors: Costs vary widely based on project scope. You’ll need to understand your renovations and get contractor estimates.
• Budgeting tip: Add a percentage for unexpected costs, including changes later in the project.
• Loan options: CrossCountry Mortgage offers renovation loans from cosmetic upgrades to complete expansions.

Renovations may be tax-deductible or qualify for a tax credit, but only a professional tax advisor can guide you. Four categories of home renovations may qualify for tax breaks:

• Home office improvements
• Energy-efficient home improvements
• Improvements for medical care
• Rental property maintenance

While you could use a credit card or personal loan, a home loan will give you a better interest rate and financing to suit your project and your goals. CCM has several loans that combine your purchase or refinance with your renovation costs and provide disbursement management, so your contractor is paid correctly and on time.

The time for your renovation will depend on the project’s scope. While cosmetic work might take a week, a complete renovation could take a year or more. Loans have different time limits, too, so be sure to discuss this with your CCM loan officer. Experienced contractors and remodelers will tell you to allow extra time (within reason) to keep your stress level down and be prepared for delays.