Alternate Financing
For borrowers who may not qualify for traditional home loans, alternative mortgage financing options provide flexible solutions to secure homeownership.
Below are three popular loan products designed to accommodate self-employed individuals, real estate investors, and those with unconventional income sources.
Debt Service Coverage Ratio (DSCR) Loans
DSCR loans are designed for real estate investors who want to qualify for financing based on rental income rather than personal income. These loans focus on the property's cash flow and require minimal documentation, making them ideal for investors looking to expand their portfolios.
Key Benefits:
- Qualification based on rental income, not personal income
- No tax returns or W-2s required.
- Can be used for single-family homes, multifamily units, and commercial properties.
Bank Statement Loans
Bank statement loans cater to self-employed borrowers who may not have traditional income documentation. Instead of tax returns, lenders assess 12 to 24 months of personal or business bank statements to determine income eligibility.
Key Benefits:
- Ideal for freelancers, entrepreneurs, and business owners.
- No need for tax returns or pay stubs.
- Flexible income calculation based on bank deposits.
Asset Utilization Loans
Asset utilization loans allow borrowers to qualify based on their liquid assets rather than earned income. These loans are perfect for retirees, high-net-worth individuals, and those with significant savings who prefer not to rely on traditional income documentation.
Key Benefits:
- Qualification based on assets such as cash, stocks, and retirement funds.
- No employment or income verification required.
- Great option for those with substantial financial reserves.
Find the Right Loan for You
If you’re looking for a mortgage solution that fits your financial situation, these alternative financing options may be the perfect fit. Schedule a Meeting to learn more and find the best loan program tailored to your needs!
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Joe Brown, NMLS #145314
Reagan Rains, NMLS #233020
Address: 5868 Baker Road, Minnetonka, MN 55345 and NMLS# 891464
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