Verus Mortgage Capital, a correspondent investor offering residential non-QM, investor rental and fix-and-flip loan programs, has introduced a new higher balance loan program for applicants with alternative income documentation.
The new program, dubbed Prime Ascent Plus, offers LTVs up to 90%, FICOs down to 660, DTI up to 50%, and loan amounts from $150,000 to $2.5 million, the firm says in a release.
In addition, the program offers 24-month standard documentation options, 12- and 24-month alternative documentation options for self-employed borrowers, and 24-month Alt Doc 1099.
Prime Ascent Plus is available for second homes, investment properties and interest-only loans. There are cash-out options as well.
“There is a significant number of creditworthy individuals that need higher balance loans but struggle with qualifying for one reason or another,” says Jeff Schaefer, executive vice president of correspondent sales for Verus. “Our new Prime Ascent Plus Program is inherently flexible which makes it a suitable option that lenders can confidently offer their borrowers.”
Since its first non-QM securitization in 2015, the company’s market share has grown exponentially.
In 2015, the firm’s securitization volume stood at just $35 million. In 2018, Verus bought $2.6 billion in non-QM loans. Year-to-date non-QM loan purchases have already exceeded $2.8 billion.
When the Consumer Financial Protection Bureau first established its Ability-to-Repay rules for QM mortgages in 2014, the non-QM market was virtually nonexistent.
Today, however, its overall loan volume is expected to reach $40 billion to $50 billion.
To date, the company has purchased almost $6 billion in expanded, non-agency loans and has completed 13 rated securitizations.