Specialty Home Loans
Understanding the Difference Between Agency Loans and Non-QM Loans
When it comes to financing your home, it's essential to understand the difference between agency loans and Non-QM (Non-Qualified Mortgage) loans to find the best fit for your unique needs.
Agency Loans (Conventional Loans)
Agency loans, commonly known as conventional loans, are typically backed by government-sponsored enterprises like Fannie Mae or Freddie Mac. These loans adhere to specific guidelines, including credit score requirements, income verification, and debt-to-income ratio limits. They are ideal for borrowers with a steady income, strong credit history, and the ability to provide documentation such as tax returns and W-2s.
Non-QM Loans (Specialty Loans)
Non-QM loans, or Non-Qualified Mortgage loans, are designed for borrowers who don’t meet the standard criteria for conventional loans. These specialty loans offer more flexibility, particularly for investors, self-employed individuals, and foreign nationals. Unlike agency loans, Non-QM loans may not require traditional income verification, allowing borrowers to qualify using alternative documentation like bank statements. While these loans typically come with higher interest rates due to the greater risk, they offer unique features tailored to your specific financial situation.
We Offer the Following Specialty Loans:
DSCR (Debt Service Coverage Ratio) Loans for Investors: Ideal for real estate investors, these loans focus on the property’s cash flow rather than personal income.
Bank Statement Loans: Perfect for self-employed individuals, allowing you to qualify based on bank statement deposits instead of traditional income verification.
Foreign National Loans: Tailored for non-U.S. citizens looking to invest in U.S. real estate, with flexible qualification criteria.
Single-Wide Manufactured Home Loans: Specialized financing options for single-wide manufactured homes, often with flexible terms.
P&L (Profit & Loss) Loans: Designed for self-employed borrowers who prefer to use a profit and loss statement instead of tax returns for qualification.
Stand-Alone HELOCs (Home Equity Line of Credit) Access your home’s equity with a flexible line of credit that stands alone from your primary mortgage.
Asset Depletion Loans: Allows high-net-worth individuals to qualify based on liquid assets rather than income.
Bridge Loan Alternatives: Short-term financing options to help you transition from one property to another without waiting for a sale.
Condo-Tel Financing: Specialized loans for purchasing a condo within a hotel or resort property, ideal for those looking to invest in a vacation property that offers hotel-style amenities and rental income potential.
Customer for Life Program At Community Lending, we believe in building lifelong relationships with our clients. As part of our “Customer for Life” program, we waive our fees for returning customers, ensuring you continue to receive the best value and service whenever you need financing.
Which Loan is Right for You
Choosing between an agency loan and a Non-QM loan depends on your financial situation and goals. If you have a stable income and can provide the necessary documentation, an agency loan might be the best choice for you. However, if you need more flexibility due to non-traditional income or other circumstances, one of our specialty Non-QM loans could be the perfect solution.
Our team is here to help you navigate these options and find the right loan to meet your needs. Whether you’re a first-time homebuyer or an experienced investor, we have the expertise to guide you every step of the way.
Rates and terms are subject to change without notice. Contact us for complete program details.
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