The Bulletproof Trust and Half Your Mortgage may be the only two programs we offer that do not compliment each other. The reason for this is because a borrower must rely on a lender to supply the home loan, and they determine almost everything based on taxable income.
A Non-QM loan, or a non-qualified mortgage, is a type of home loan that allows one to qualify based on alternative methods, instead of the traditional income verification required for most loans. Common examples include bank statements or using your assets as income. The lender will use 24 months of business (divide amount by 2) or personal bank statement (divide by 2 or 1, depending on bank) deposit history. The income amounts are divided to compensate for monthly expenses. The disadvantages of a Non-QM loan is they often come with higher interest rates, a minimum credit score of 660, a requirement for 6 months of cash reserves, and only offer a maximum Loan-To-Value of 80%. During good economic times there are lenders that offer bank statement loans for HELOCs and mortgages; however, in an economic downturn (i.e. 2008-2012, 2020-2024) the lenders will remove virtually all loans of this nature due to liquidity issues in the bond markets.
Be aware that hard money is an option for a real estate investor who is flipping a property and has a significant down payment. Hard money finances non-owner occupied properties and with 6-12 month terms. This is a great option for a flip or the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method.
NOTE: Unfortunately, most of our lenders have suspended these loans. When they are offered again these loans always have tighter lending guidelines, such as: lower LTVs offered, higher down payment, more equity required in order to be approved. We do anticipate lending in these areas to increase again as the economy starts to return to "normal". Most lenders we've spoken with who are active in the non-QM space seem to think that these types of loans will resume as quickly as they disappeared, once market conditions improve.