Most traditional mortgage loans follow a strict set of standard guidelines which often require rigid qualifying metrics from a borrower. However, there are new loan programs that are designed around taking a more “common sense” approach. The Bluefire Community Mortgage loan is the perfect example of how a borrower can qualify for a mortgage loan with no income documentation (i.e. no tax returns, W2s, or pay stubs needed).
The Bluefire Community Mortgage loan program qualifies applicants using three main metrics: Loan To Value (Property Collateral), Credit Profile (FICO credit scores), and available reserves/liquidity. One of the most notable aspects of this program is that there is NO debt-to-income ratio taken into qualifying consideration.
The total required reserves vary by each transaction from 12-24 months of the subject property’s total housing expense PITIA (principal, interest, taxes, insurance, & association dues). If you own other residential real estate with an existing mortgage(s) an additional 1.5% of the total outstanding principal mortgage balance is also required.
This loan program is available for purchases or refinances on either a primary or second home. The maximum loan amount that can be financed is $3,000,000 with a maximum loan-to-value ratio capped at 80%. The minimum credit score starts at 640 for purchase transactions and 660 for cash- refinances.
Other Cool Features
-Only 1 Month of Asset Seasoning Needed
-No Prepayment penalties
-Gift Funds are Eligible for Down Payment
-Cash-out proceeds can be utilized for reserves
Who Is The Ideal Borrower Type?
The wide range of borrowers includes but is not limited to the following types:
-Anyone who has recently become self-employed and does not have supporting income documentation to qualify for a conventional loan
-Self-employed borrowers who write off a majority of their income but have assets and good credit
-Anyone who is looking to purchase a home but has inconsistencies or fluctuations in their reported income on their tax returns
-Anyone who is looking to refinance and pull equity out of their current home but has inconsistent reported income