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Fully Documented NonQM: Is It Really NonQualified?

Reliant Bank offers many varieties of NonQM loan programs, but most of our business is NonQM full doc. While you may know the nuts and bolts of our assorted loan programs, you may not have thought about how each individual solution is applied to particular, unique situations.

Let’s take a closer look at a few detailed examples of cases where NonQM Full Doc was the correct fit:

Property What do you do with a house on land that is zoned for agriculture, especially if it’s a jumbo loan?   We purchased this loan, and when we looked at the photos, we saw a property with a large suburban house. There were no chickens, no crops and no cows, yet it was zoned agricultural.  The comps were close, and we learned that this farm area of Colorado was becoming “gentrified”, pushing cows out and custom homes in.  All of these circumstances made for an easy NonQM Full Doc loan situation.

Usage:  Consider the example of a lake front property in Virginia. This property was also a jumbo loan, but the land had two custom homes situated on it.  Our borrower wanted to reside in one home and have his in-laws move into the other home.  The borrowers were solid and were able to work remotely because of COVID. They moved from bustling New York City to a lake-side suburban area in Virginia.  While this situation was not exactly “conventional,” it fit our NonQM Full Doc program.

Debt to Income Ratio There have been many instances where a borrower was slated for our Prime Jumbo program but a drop in income (sometimes COVID related) or debts that had to be counted pushed the DTI above 43 percent. In these situations, our NonQM Full Doc program served as a Prime Jumbo fallout product.

At Reliant Bank, we understand that not every customer fits into a conventional loan program. There are many other examples of this in addition to the scenarios listed above including: borrowers who own multiple properties, non-warrantable condos, interest -only ARMs, bank statements in lieu of tax returns and using DSCR instead if DTI. These are all reasons to use our NonQM program. Not matter what the circumstance, we’re dedicated to providing competitive and effective mortgage solutions.

Reliant Bank is a publicly-traded, regulated financial institution with more than $3 billion in assets. We offer a variety of mortgage solution programs with competitive rates and an easy, efficient process for both lending partners and borrowers. Reliant Bank is a profitable bank located in Nashville, Tennessee.  We specialize in Prime Jumbo and NonQM loans, purchasing on a Del and Non-Del (flow) basis in all 50 states. Learn more at reliantbank.com

 

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