Flexible Mortgage Options for America’s Modern Borrowers
You’ve probably seen the headlines about higher mortgage rates, low housing inventory, sky-high home prices, and bidding wars. You also may think you still need to put 20% down on a home or can’t qualify for a mortgage if you don’t check the traditional boxes of a conventional 30-year mortgage. Taken together, it may feel like homeownership is out of reach, but that’s not necessarily true. In fact, there are multiple mortgage options that are outside of the traditional lending box – especially if you’re self-employed or earn your income in non-traditional ways.
If you don’t qualify for a conventional or government-backed mortgage, non-qualified mortgages, or non-QM loans, might be your next best option. Non- QM loans are mortgages that don’t meet the definition of a qualified mortgage under certain federal rules for residential mortgages. Some of these rules include having a loan term of 30 years or less, generally limiting points and fees to 3% or less of the loan amount and prohibiting interest-only loans and loans with negative amortization or certain balloon payment loans, among other requirements.
At Finance of America Mortgage LLC, we believe that consumers deserve access to innovative, flexible lending solutions that make sense for the modern borrower – not a one-size-fits-all approach to mortgage products. That’s why we offer both QM and non-QM loan options to help borrowers from across the financial and income spectrum.
Our Two-X Flex suite of non-QM loans have updated underwriting guidelines that take into consideration the types of income and assets from less traditional sources while still accurately assessing a borrower’s ability to repay their mortgage. Conventional mortgages, which are qualified mortgages, typically have more rigid guidelines with less flexibility around income documentation and income sourcing. But with Two-X Flex, borrowers may qualify for a home loan with verified P&L statements, 1099 income, bank statements, existing assets, or other alternative income documentation.*
For real estate investors, we offer a DSCR (Debt Service Coverage Ratio) program for business-purpose loans, which allows them to use future rent payments to cover their mortgage payments, as well as a flip-and-fix program through our commercial division that helps borrowers buy property to renovate and put on the market.
No matter your income situation or real estate goals, make sure you work with a knowledgeable, experienced mortgage advisor who can connect you with the right loan products that meet your needs. Despite the headlines, remember that owning real estate may be one of the best paths toward building lasting wealth for you and your family.
About Thoai Pham, Branch Manager, Finance of America Mortgage
Thoai Pham (NMLS-378733) is a leader in Hawaii’s mortgage and lending industry. With over 15 years of experience, she has assisted investors and business owners, first-time homebuyers, military families, and retirees to achieve their home financing goals. Whether it’s finding a great mortgage rate, meeting tight deadlines, or structuring a complex loan, Thoai recognizes her client’s individual needs and finds a tailored solution, whenever possible.
Thoai graduated from UC Santa Barbara with degrees in Finance and Business (Economics and Accounting). She is fluent in both English and Vietnamese and enjoys travelling, fishing, scuba diving, and spending quality time with her husband and baby daughter at their home in Hawaii.
Thoai Pham,
NMLS-378733
Branch Manager,
Finance of America Mortgage
500 Ala Moana Blvd., Suite 7400
Honolulu, HI 96813
Email: thoai.pham@financeofamerica.com
Phone: (808) 221-7951
