Redwood Home Lending specializes in non-QM and jumbo loans for people who have found it difficult to obtain a traditional mortgage. The common factor for most people unable to get a loan from other financial institutions is not meeting government sponsored enterprise (GSE) mortgage guidelines.
Larger financial institutions typically plan on selling loans to GSEs, such as Fannie Mae and Freddie Mac, in the secondary market. What this means for people seeking home loans is anything in their loan application that doesn’t meet the strict GSE guidelines from low FICO score to non-qualifying W-2 income to simply not having a social security number will prevent them from obtaining a traditional mortgage. We take what can be a drawn-out and frustrating process and streamline non-QM and jumbo home lending by processing, underwriting, funding and closing our loans internally. Because we don’t outsource any aspect of the loan we offer Redwood clients a transparent and efficient loan process. The result is a quick turnaround time, efficient customer support and an overall hassle-free experience for our clients. This process ultimately translates to more successfully closed loans.
Simply put, a non-qualified mortgage is a home loan that doesn’t meet the Consumer Financial Protection Bureau (CFPB) guidelines for a qualified mortgage (QM). Because non-QM loans don’t meet the CFPB guidelines they aren’t eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac in the secondary markets. Jumbo mortgages are a form of home financing for loan amounts that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because jumbo loans don’t meet the FHFA limits they aren’t eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac in the secondary markets.
A self-employed businessperson can have a solid credit score, income and assets to support purchasing a home but still be turned down for a traditional mortgage. Carol has owned and operated a service business for five years, pays all her bills on time and maintains a strong FICO score along with a steady stream of revenue from her clients. But because her W-2 income doesn’t meet the strict GSE guidelines Carol is turned away by larger financial institutions looking to resell her loan on the secondary market. Redwood Home Lending is ready to get Carol on the path to home ownership.
People from outside the U.S. in the country for an extended period of time who would prefer to buy a home while they are here rather than rent don’t meet the strict GSE guidelines because they don’t have a U.S. government issued social security number. Victor is an executive from Germany who will be living in the United States for at least the next five years. His income level is high and he is interested in purchasing a home to live in during his time in the U.S. since he knows it will be a number of years. But because his lack of an SSN doesn’t meet the GSE guidelines Victor is turned away by larger financial institutions looking to resell his loan on the secondary market. Redwood is ready to start Victor on the path to an Individual Taxpayer Identification Number (ITIN) home loan.
Tough circumstances can happen to anyone. When those instances include a financial impact the fallout can affect a person’s FICO score, and in turn their ability to obtain a traditional mortgage. Joe had an unexpected medical expense that not only was expensive, but also kept him from working for a period of time. The result was missed and late payments that dramatically impacted his FICO score. But, Joe’s income is still solid. Because his FICO score fell below the strict GSE guidelines Joe is turned away by larger financial institutions looking to resell his loan on the secondary market. Redwood is ready to speak with Joe about his home loan options by meeting money down and loan-to-value (LTV) benchmarks.