Unique Mortgage Loan Programs for Today’s Market

Let’s be real for a second: Mortgages are not cookie-cutter because borrowers are not all the same. There are, of course, some mortgage programs that can serve larger populations—hello, conventional mortgages and FHA loans—but there are plenty of people who aren’t accommodated by these programs for one reason or another.

Sometimes that has to do with qualifying, employment status, or what they’re trying to finance. But whatever the reason, Preferred Rate wants to ensure that all borrowers can achieve their homeownership dream…whatever that dream looks like.

Enter unique mortgage loan programs for nontraditional borrowers. Preferred Rate has an elaborate suite of specialty loan products and financing solutions that can help borrowers who don’t “fit the mold” when it comes to conventional mortgages. 

This article outlines some standard nontraditional financing solutions that we offer—and these aren’t the only ones.

Non-QM Loans for Credit-Challenged Borrowers

Not every borrower falls within the credit score guidelines for a conventional mortgage or government loan program. Some find that they can’t obtain financing if their credit score is under 640, but that’s not a problem at Preferred Rate. 

Expanded credit qualifying is one of the many perks we offer. We can help our borrowers get a non-qualified mortgage with a FICO score starting as low as 600. 

DSCR Loans for Investors

Debt service coverage ratio (DSCR) loans are a powerful financing tool for real estate investors who want to qualify based on the cash flow potential of the property, not their personal income. 

These loans are ideal for borrowers who own multiple properties, write off a lot of income on their taxes, or simply prefer a more streamlined qualification process. Instead of traditional income documentation, DSCR loans look at whether the rental income from the property can cover the mortgage payment. If the numbers work, you’re good to go. 

With Preferred Rate’s DSCR loan options, real estate investors can keep growing their portfolios without jumping through all the traditional hoops.

Loans for Foreign Nationals

The American dream isn’t just for American citizens; it’s for anyone who comes to this country with aspirations. If those aspirations include purchasing a home, then Preferred Rate has a program for you.

We can accommodate borrowers with individual taxpayer identification numbers (ITINs), a tax processing number given to foreign nationals, their spouses, and dependents who can’t obtain a Social Security number. 

These mortgage financing programs address many of the challenges that plague noncitizens, such as credit, debt-to-income ratios, only being able to show alternative sources of income, and smaller down payments.

Bridge Loan Program

A bridge loan is a short-term financing solution that, among other things, can help move-up buyers bridge the gap in their real estate financing when they are buying and selling a home at the same time. 

Bridge loans come in handy when buyers are ready to purchase but need to access the equity out of a current home that has not yet closed escrow. Once your home is sold, you pay off the bridge loan, and you’re left with just one mortgage—the one for your new home!

Loans for Self-Employed Borrowers

It’s a fact: Self-employed borrowers typically find qualifying for a mortgage the traditional way challenging. That’s because “traditional” means needing two years’ worth of tax returns, in addition to profit and loss statements. 

You shouldn’t be punished for being an entrepreneur, which is why Preferred Rate offers mortgage loan solutions designed for the self-employed. These include bank statement documentation, asset utilization, 1099, P&L programs, and other innovative qualifying methods to help you get a mortgage.

Jumbo Loans

In metropolitan areas, high housing prices mean that even the most modest home can fall into the “jumbo” category—but don’t let that scare you! We have your back and can work with you to make sure you have all the facts available as you make your financing decisions. 

Preferred Rate offers a dozen different jumbo loan programs to help fit the needs of today’s market. Several include loan amounts up to $3.5 million and can accommodate both traditional and nontraditional qualifying. 

Construction Loans

What if you aren’t buying a house but building one instead? 

Preferred Rate’s got you covered. We have a dedicated in-house construction team that can offer a 12-month, interest-only construction loan, which gives you what you need most: time and money to build your dream home. 

New construction loans are available in all states where Preferred Rate is licensed. In many cases, you don’t have to sell your current home to qualify. Down payments can be as low as 10%, and you can use pre-owned land to offset the down payment. Fixed-rate mortgages and adjustable-rate mortgages (ARMs) are available, as well as interest-only payments during the construction period.

Renovation Loans

If you’re modernizing or expanding your current home (or one you plan to purchase), we’ve got a nontraditional mortgage loan solution for that as well. 

These loan options mean you don’t have to deplete your savings to complete repairs or remodels. Your loan is based on the future appraised value of the home after improvements are made. The loan includes all costs, such as minor and major repairs, additions, and renovations. 

It also includes the purchase price (if you’re buying a home that needs updating/repairs) or existing home loan balance minus the required down payment or existing home equity.

These loan terms make renovation loans ideal for current homeowners who love where they are and don’t want to move but know their house needs a little work. They’re also perfect for investors and potential landlords who are looking to either flip the property or rent it out after the improvements are made. 

Manufactured Housing

In many communities, manufactured housing is a cost-effective solution to getting the home you want and the space you and your family need. 

We have loans for different types of manufactured homes, and one product that allows financing of single-wide (SW) manufactured homes that are more than 10 years old! This applies whether the manufactured home is your primary residence or a second home.

If you’re a borrower in need of financing solutions that range outside the conventional conforming guidelines, Preferred Rate is here to help. Click here to connect with a Preferred Rate Mortgage Advisor in your area.