New Penn Financial entered into the burgeoning non-Qualified Mortgage territory and introduced the Home Buyer Power product.
Buyers will still need to provide full income documentation, demonstrate strong credit scores and meet additional guidelines that indicate their ability to repay, helping ensure the borrowers are qualified.
“Home Buyer Power creates mortgage lending opportunities for customers with strong credit who fall outside the very specific criteria required for QM loans,” said Brian Simon of New Penn Financial. “These are solid buyers with strong income who may have a high debt-to-income ratio.”
The product features an interest-only option, and buyers with debt-to-income ratios as high as 55% at 80% loan-to-value may qualify for loans.
“We expect Home Buyer Power to appeal to high-end customers who may be paying expensive metro-area rents. They have the income to support a home purchase, but they may also have higher than average debt obligations,” added Simon.
New Penn Financial is one of a handful of lenders slowly stepping into non-QM lending.
RPM Mortgage announced new solutions specifically for residential borrowers who are looking for loans of up to $4MM but still not inside the new QM guidelines. And back in June, Caliber Home Loans rolled out four types of new non-agency mortgage products.