On Q Financial Enters The Non-QM Realm


While the real estate market continues to show signs of recovery with interest rates at historical lows, many home buyers are still unable to obtain a mortgage because of difficult lender qualification requirements.

In an effort to assist these ‘underserved’ borrowers, mortgage banker On Q Financial is now offering non-qualified mortgage (non-QM) loan programs.

On Q's new non-QM loan products include solutions for self-employed or recently retired borrowers, individuals with a short credit history or flawed credit from a past short sale or foreclosure.

On Q will also be offering debt-to-income ratios of up to 50% on certain products. The company has also introduced a 40-year amortization jumbo loan with an interest-only option.

In addition, On Q is relaxing certain self-imposed underwriting credit overlays.

‘We recognize that many lenders are continuing to impose strict standards, burdensome policies and credit overlays for self-protection, but at On Q we are focused on helping well-qualified customers get into homeownership,’ says John Bergman, founder and president of On Q Financial Inc., in a recent release. ‘There are a lot of responsible people that don't fit into the QM box that are getting shut out of the market. It's been 10 months since QM regulations have been in effect, and we are confident that with our sensible underwriting standards, these non-QM loans will provide an ideal solution for On Q, our investors and our borrowers.’

As the release points out, these loans will be underwritten using a much stricter set of criteria compared to the no-doc, low-doc, low-money-down, no-money-down, interest-only loans of the mid-2000s.

‘We will reach the underserved market of borrowers who have ample equity and assets, but may be challenged by income or credit factors,’ Bergman says. ‘At On Q, we have the ability to make decisions intelligently, on a loan-by-loan basis while still ensuring that the loan meets responsible standards.’

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