Non-Conforming Loans from New South Mortgage
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In Charleston SC, the name to know for non-conforming loans is New South Mortgage. But what are non-conforming loans? According to Wikipedia, “a non-conforming loan is a loan that fails to meet bank criteria for funding. Reasons include the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it.”
What does that mean in the real world? As New South founder and owner Jamie Culler explains it, “For a long time there have been no alternatives for someone who has little to no income verification. This might include the self-employed, the retiree living off of interest and dividends, and certain investors.”
“A prime candidate is the self-employed individual,” Culler explains. “Often, they can’t verify all their income. It’s THERE, but they write off everything they can to reduce their tax liability. So, on paper, it looks like they can’t verify the necessary income to qualify for a typical loan.”
“Another example would be a recently retired person. They’re living off the interest and dividends from investments. They’re comfortable, but there’s not enough interest and dividends to qualify for the loan.” However, as Culler explains, there is a workaround. “They might have several hundreds of thousands or a million dollars in assets. So, the relative lack of income and the higher debt-to-income ratio would be offset by their reserves. That’s the kind of situation non-conforming loans take into account.”
“For investors, there is a limit to the number of loans an entity like Fannie Mae will allow. You have the income and the assets, but one more loan is one too many. Again, non-conforming loans can help this person, though they will usually charge a slightly higher interest rate.”
According to Jamie Culler, there is a lot to know when considering a non-conforming loan, and expertise is key. “First, this isn’t some pre-Crash relic that rewards risky behavior. This is a stable, conservative program. You will need that 20% down payment. And there are potential clients that I have to turn away – it’s just not for them.
“But there are many folks out there who look at their situations and automatically figure they could never qualify for a loan. For them, non-conforming loans may be the answer. I say, give me a call. I have been self-employed for over 20 years – I know what it’s like! I will work with you. I will really dig into your bank statement or tax return looking for a way – a legitimate way – to make it work. Self-employed, entrepreneurs, special circumstances…these are really our strength here at New South.”
To learn more about non-conforming loans, turn to the name Charleston SC has trusted for almost 20 years – New South Mortgage. Contact us today!