Non Prime
For over 20 years Nationwide Mortgage has been helping borrowers purchase and refinance their properties. Non-Prime, or what is thought of as Owner Occupied, “Hard Money” is primarily for consumers with one of the two circumstances.
Credit Challenges
Credit scores can be reduced for many reasons including late payment history, how much of your available credit is being used, Bankruptcy, Foreclosure, or Short Sales.
Self Employed Borrowers Supporting their Income with Tax Returns
Borrowers need to show the Ability-to-Repay. That is a rule that all lenders must follow when they offer a loan to a borrower. But tax returns don’t always tell the whole story. So that is why we can offer programs that allow you to document your income with Bank Statements instead of Tax Returns. The programs have rates and fees that are typically higher than conventional lending. But it’s a great option to have!
7 Reasons for Low Credit Scores
Late Payments
Your credit history accounts for about 35% percent of your credit score.
Defaulting on Payments
If you don’t pay your credit card bill your accounts become in default.
Charge-Offs
Your accounts become written off by creditors when they think that you are not planning to pay your balances.
Collection Accounts
Creditors can hire or sell your delinquent debt to third-party debt collectors to try to obtain a payment from you.
Judgments
When a court system forces you to pay a debt. An unpaid judgement is much worse than a paid judgement.
Filing Bankruptcy
A way to clear debt that you can not pay.
Foreclosures
A legal process where your mortgage company obtains ownership of your home when you don’t pay your mortgage.
Non Prime Loan Programs
Non Prime Guidelines
- 1 day out of foreclosure, short sale, bankruptcy or deed-in-lieu
- Loans up to $1 million
- Up to 90% LTV
- Debt to Income Ratio up to 50% considered
- Owner-occupied, 2nd homes, and investment properties
- Non-warrantable condos considered
- Jumbo loans down to 575 score
- 5/1 ARM or 30-year fixed
- No pre-payment penalty for owner-occ and 2nd homes
- No active tradelines OK with housing history
- SFRs, townhomes, condos, 2-4 units
- Seller concessions to 6% (2% for investment)
Bank Statement Program
- No tax returns required
- 12 months of personal bank statements
- 24 months of business bank statements
- Loans up to $3 million
- Credit scores down to 620
- Rates starting in the low 5’s
- Up to 90% LTV on Personal and Business
- DTI up to 50% considered
- Owner-occupied, 2nd homes and investment properties
- 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
- Non-warrantable condos considered
- Jumbo loans down to 660 score
- 5/1 ARM or 30-year fixed
- No pre-payment penalty for owner-occ and 2nd homes
- Seller concessions to 6% (2% for investment)
- 2 year self-employed required
These programs are higher in rates, points, and Fees than Fannie Mae-type programs.
ITIN Program - Non Individual Taxpayer Identification Number
These programs are designed to help people who have a tax id number (ITIN) but no social security number.
Program 1
- Minimum Down Payment of 10% is Required
- Use Tax Return or Bank Statements to Document Income
- Most Property Types Accepted
- Gift Funds Allowed
- Quick Closings
- Fixed Rate Mortgage with 15, 20, or 30 Year Term
Program 2
- Purchase, Refinance, Investment Properties
- 20% Down Payment (Gift allowed) Call for details
- 2 Years Tax Returns
- 2 Years W2 or 1099
- 3 Months Bank Statements
- Passport, ITIN Card, Drivers License
These programs are higher in rates, points, and Fees than Fannie Mae-type programs.
Foreign National Program
General Requirements – Max LTV 70% Max Loan Amount $1,000,000 Qualify at 640 FICO score Designed for experienced investors.
Income and employment are not verified. Documentation – Copies of the borrower’s passport and unexpired visa must be obtained The following visa types are accepted for foreign nationals: – B-1 and B-2, H-2 and H-3, I, J-1, and J-2, O-2, P-1, and P-2 Assets.
NO Reserves required Funds for the down payment and closing costs must be sourced or seasoned for 60 days – Must be in US depository for 30 days prior to closing Credit – 3 open accounts with a 2-year history Letters of reference allowed 2-year housing history can be used as tradeline **All documents must be translated by a certified translator.
Closed Loan Examples:
Here are some examples of loans that we offer, and the general guidelines that pertain to them.
Bank Statement Program
Personal or Business bank statements can be provided instead of providing traditional income documentation like tax returns. This program is for Self Employed Borrower’s only.
Here is an example of a loan that funded 2/2021:
- Interest Rate: 4.000% APR: 4.036%
- Loan Amount: $500,000
- FICO: 735
- Term: 30 year Fixed rate 1st Trust Deed.
- Loan-to-Value: of 75%
- Income Documents: 12 months Personal Bank Statements
- Property type: Condo, Primary Residence
- Mortgage Payment: $2,387 Principle and Interest. Did not include tax or Hazard Insurance.
General Guidelines
- FICO: 600+
- Term: 30-Year Amortized & Term – 7/1 Hybrid ARM or 30-Yr Fixed
- Property Types: 1-4 Unit Single Family Residences, Condominiums and Town Homes
- Debt-To- Income: Max of 50%
- Pre-Payment Penalty: None
- Impounds Required: Yes
Credit Challenges
Here is an example of a loan that funded 3/2021:
- Interest rate: 6.875% / APR 6.922%
- Right after a Forbearance
- Loan Amount: $685,750
- Credit Score: 600
- Origination Fee: This was a 0 point loan, that had a broker, lender fee, and third party fees like Title, Escrow, and Appraisal.
- Term: 30 year fixed loan in the 1st position.
- Loan-to-Value: 65%
- Property Type & Occupancy: Detached PUD, Owner Occupied.
General Guidelines
- Loan Amounts: $75,000 to $3,000,000. Additional restrictions and additional costs will apply to higher loan amounts.
- FICO: From 580
- Property Types: 1-4 Unit Single Family Residences, & Condominiums.
- Max Debt to Income Ratio: 50%
- Pre-Payment Penalty: None
- Impounded Tax and Insurance: Required
- 1st Lien Position
Years in Business
Billion Dollars Funded
Closed Loans
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