Top Reasons Why Investors Are Turning to Alternative Non-QM loans

Posted by Tiffany Yang on Feb 19, 2020 9:00:00 AM

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Are you considering taking out a non-qm loan? There are several reasons why non-qm loans are becoming the optimal solution for investors looking to grow their real estate portfolios. Investors are often restricted by conventional guidelines, essentially holding them back from redirecting their capital at a steady pace to grow their monthly cash flow.

Senior Account Executive Nick Marrone started his finance career at Visio Lending and has since connected with seasoned investors across the nation. Check out Nick’s list of  the Top Reasons Why Investors are Turning to Alternative Non-QM Loans:

1. Non-QM Loans are designed to fit the needs of investors

Often, you’ll see non-QM loans advertised for those who have gone through bankruptcy or those who can only prove income through bank statement type loans

Many don’t know that non-QM products are great for experienced investors. At Visio Lending, we fund rental properties based on the asset itself, with no income verification. Our non-QM programs are designed to measure the cash flow of the subject property, allowing rental investors to obtain financing without having to verify their personal income.

2. Non-QM loans close faster

Time is money. We often work with investors who are at the closing table, monthly or even weekly. As investors gain experience, their strategy falls into place of redirecting their capital from one subject property to another turn-key property. With non-QM loans like ours, you will typically experience a faster pre-qualification and closing.

At Visio Lending, we require low documentation about the subject property and borrower to process your loan. Everything is much more streamlined from documents needed to closing, and our borrowers have assistance from an Account Executive, like Nick Marrone, through the entire process. Nick always lets his borrowers know what to expect up-front so there are no surprises and a smooth process.

3. Non-QM loans offer Shorter Seasoning Requirements, if any.

Often, non-qm lenders require shorter seasoning, allowing investors to grow their portfolios much faster, whereas conventional lenders require about 6-12 months.

With investors’ needs in mind, Visio Lending only requires 30-day seasoning for refinances. Nick can help his partner investors quickly obtain a rental property and oftentimes, they will cash-out for their next subject property after 30 days

4. Non-QM loans enable you to Borrow in an LLC

This could be a great tip if you are a first-time investor! Many of our investors borrow in an LLC. It may sound like a lot of extra work to create an LLC for your rental, but you are really protecting yourself and your other assets by doing so.

In traditional lending, you cannot borrow under your LLC, but at Visio Lending, we even encourage the strategy to do so. Essentially borrowing using your LLC, keeps the liability of your assets separate from one another. In the case that one property fails for any reason, that one foreclosure will not affect your other LLC and properties. And Nick likes to remind his borrowers that creating an LLC per asset is ideal, and we do not require your LLC to be seasoned if it’s in good standing.

5. Non-QM Loans Incorporate Vacation Rentals/Short-Term Rentals

Last, but not least, it is not possible to finance your next Airbnb property or short-term rental without an alternative non-QM lender. At Visio Lending, we call them Vacation Rentals and we take pride in being able to offer common sense underwriting for short-term rents. These rentals do not need to be rented year-round and provide great monthly cash flow.


Topics: Real Estate Investing