One of the top lenders in the country is now offering mortgages to borrowers who do not fit into the Qualified Mortgage box.

New American Funding announced Tuesday that it is expanding into non-QM lending, joining a growing group of lenders that are offering mortgages to “non-traditional” borrowers.

According to New American Funding, the program will target “credit worthy” borrowers who are “self-employed, have non-traditional incomes, have assets and no income, or have had difficulty qualifying for a traditional mortgage.”

The company said its non-QM loan can be “customized and use alternate methods of income verification” to allow certain borrowers to qualify for a mortgage when they otherwise would not have been able to qualify.

According to New American Funding, the “alternate” income sources include:

  • Self-employed
     
  • Fluctuating and non-traditional incomes
     
  • Workers with fluctuating income
     
  • Qualifying assets, but no income
     
  • Alternative income verification methods accepted
     
  • Second homes and investment properties may be eligible

The lender said that borrower may prove their income or assets in several ways, including:

  • Full Documentation
     
  • One-Year Tax Return Program
     
  • Bank Statement Program (6 or 12 months)
     
  • Asset Depletion/Asset Qualification

The company said that its non-QM loan may be used for rate-and-term refinances, cash-out refinances, or a new home purchase for owner-occupied, second homes or investment homes.

“We’re dedicated to making sure everyone has an equal opportunity to achieve the American dream,” New American Funding CEO Rick Arvielo said. “At New American Funding, we’re excited to offer more options to a more diverse set of consumers and help them through the homeownership process.”

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