What kind of buyer are you?

The VA loan is another government-backed home loan. This loan is exclusively only available to active-duty service members and veterans with discharges other than “dishonorable,” and National Guard and Reserve service members with an “honorable” discharge.

As long as the home appraises for the sales price there is no down payment required. There is a VA funding fee - which is a percentage of the sales price - this fee can be waived if eligible - if ineligible it can be wrapped into the loan so there are no upfront costs.

The VA has no minimum credit score - to determine your interest rate and to lower risk for the lender - lenders typically have their credit and income requirements. It is important to always shop around as there are lenders who do have low to no requirements when it comes to credit and income for VA borrowers.

For more information on the VA loan and the home buying process when utilizing a VA loan be sure to download our VA Buyer’s Guide.

A Non-QM loan is for borrowers with unique qualifying circumstances. With this, it is a loan that does not meet the standards of a qualified mortgage and uses non-traditional methods of income verification. This loan makes the most sense for those who are self-employed (specifically for less than two years), borrowers with significant assets, real estate investors, etc.

Non-QM loans have their underwriting guidelines to allow the lender to view the borrower’s financial status, credit, and overall ability to repay the loan. There are many types of Non-QM loan products that various lenders offer including bank statements (typically goes off only a 12-month bank statement), jumbo loans with 10% down, no income investment loans (only takes into consideration the rental income of the property and nothing else), asset-based loans, foreign national loans, interest-only loans, recent credit event loans, and commercial rental property loans.