Our Non-QM Program Offers Reduced Seasoning on Major Credit Events

Dec 26, 2023

Did you know that our program allows for reduced seasoning on major credit events? This means that borrowers who have experienced certain credit events can still have a chance to qualify for a mortgage with us. Let’s dive into the details!

Eligible Major Credit Events

Our Non-QM program considers several major credit events, provided they have a minimum seasoning of 12 months. These events include:

  • Foreclosure: If a borrower has gone through a foreclosure, they can still be considered for our program if the seasoning period is met.
  • Short Sale: Similarly, borrowers who have completed a short sale can also be eligible for our Non-QM program, given the minimum seasoning requirement is fulfilled
  • Deed in Lieu: Those who have opted for a deed in lieu of foreclosure can also benefit from reduced seasoning on their credit event
  • Default Modification: Borrowers who have undergone a default modification can be considered for our program, as long as the seasoning period is met.
  • Over 120 Days+ Delinquent: If a borrower has been delinquent on their mortgage for over 120 days, they can still have a chance to qualify for our Non-QM program, provided the minimum seasoning requirement is fulfilled.

While our Non-QM program offers reduced seasoning on major credit events, there are a few important considerations to keep in mind:

  • Only ONE major credit event is allowed. This ensures that borrowers have a fresh start and can rebuild their credit history.
  • ALL occupancy types are allowed. Whether you are a primary resident, an investor, or have a second home, our program is open to all.
  • Seasoning begins from the date of discharge or property resolution. This means that the clock starts ticking from the date of discharge, sold date, or any other property resolution.
  • Foreclosures included in a bankruptcy (BK) based on discharge date are acceptable if the borrower vacated the property. This provides flexibility for borrowers who have faced challenging financial situations.
  • A Letter of Explanation (LOE) from the borrower is required. This helps us understand the circumstances surrounding the credit event and allows us to make an informed decision.
  • Even if a borrower only holds title to the property and is not on the mortgage, their credit event is still considered, and seasoning requirements will apply. This ensures fairness and consistency in our evaluation process.
  •  All borrowers must be current on their mortgage at the time of application.

Our Non-QM program offers a unique opportunity for borrowers who have experienced major credit events to qualify for a mortgage. By allowing reduced seasoning on events such as foreclosure, short sale, deed in lieu, default modification, and over 120 days+ delinquency, we aim to provide a pathway to homeownership for those who have faced financial challenges. If you are interested in learning more about our Non-QM program, please contact our team for personalized assistance.