Carolina Gallegos

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. Pre-qualify for a home loan

2. Check your credit report

3. Meet with a CCM loan officer

4. Establish your homebuying budget

5. Get pre-approved

6. Work with a real estate agent

7. Find your dream home

8. Submit your mortgage application

9. Make an offer

10. Get a home inspection

11. Close your loan

12. Move into your home!

It depends on the home loan. For example, conventional loans require a minimum credit score of 620. But VA and FHA loans may allow homebuyers to qualify with a credit score as low as 500. It’s important to note that lower credit scores often come with additional requirements or higher interest rates.

It typically takes a few months to buy a home. The exact length of the process will depend on the market, home and other financing factors.

At CrossCountry Mortgage, we’re dedicated to making the mortgage side of homebuying smooth and stress-free – offering full approvals quickly through our FastTrack program.

First, let’s see if you qualify for certain government-back loans. If you are a Veteran or Service Member, VA loans require 0% down. Same goes for rural homebuyers with USDA loans.

Second, talk to a CCM loan officer about local, state and national down payment assistance programs that may cover your down payment costs.

That is more about you than the market! You’ll want to consider if you are ready to take on the homebuying process and then calculate your purchasing power with a CCM loan officer. Once you know your homebuying budget, it’s time to house hunt and explore your desired community for the home of your dreams.

Before you find your dream home, it will help to have:

• Your credit score
• Proof of employment and income
• Cash or assistance for a down payment
• The right loan
• A homebuying budget
• An expert real estate agent
• Your dedicated CCM loan officer

Refinance costs vary, but typically range from 2% to 6% of your loan amount. For example, refinancing a $300,000 mortgage may cost $6,000–$18,000. Costs include appraisal, title and lender fees. A CCM loan officer can help calculate your break-even point and long-term savings.

A cash-out refinance lets you replace your current mortgage with a new one for more than you owe — taking the difference in cash. Use it for renovations, debt consolidation, tuition, or unexpected expenses by tapping into your home’s equity.

Refinancing makes sense when you can lower your interest rate, shorten your loan term, switch to a fixed rate or access equity for cash. If your current mortgage no longer fits your financial goals, it may be time to refinance.

To refinance, meet with a CCM loan officer, review your credit, apply for your new loan and submit required documents. After approval, you’ll schedule a closing and start fresh with your new mortgage terms and payment structure.

You can typically refinance after six months, but timing depends on loan type, lender and your financial situation. A CCM loan officer can help determine if now’s the right time based on your equity, credit and current interest rates.