The 3 reasons to use a Non-Prime Loans instead of a Conventional Mortgage
Credit Challenges
Primarily due to:
- Credit card or Mortgage Lates
- Excessive Late payments
- Bankruptcy
- Foreclosure
- Forbearance
- Short Sales.
Inability for Self Employed borrowers to support their income with Tax Returns.
To address this we can offer you the ability to document your income with Bank Statements instead of Tax Returns. They programs have rates and fees that are typically higher than Conventional lending. But it’s a great option to have! There are products that require:
- 3 months
- 12 months
- 24 months
Inability for Property Owners to support their income with Tax Returns.
Instead of providing two years of taxes to support rental income, a simple Lease, or market analysis of market rents can be used to document Rental income. Property expenses like taxes, insurance are compared to the Gross Income as part of the underwriting process.
Guidelines by Loan Program:
NON-PRIME LOANS:
Property types:
Single Family Homes, 2-4 units, condo, townhomes, Non Warranted condos, Condotel, Adult Care Facility, Rural Property
Loan amounts:
From $100,000 to $3,000,000
Rates:
From the high 3%’s – 8%’s
Loan to value:
Up to 90% on purchase
Up to 80% on Refinance.
Credit Tiers are based on:
Fico Scores:
- Down to 575
Bankruptcy, foreclosure:
- Considered after 1 year.
Short Sales and Deed-in-Lieu:
- Considered after settlement.
Income Documentation options:
#1. Traditional Income: (See FHA above for examples)
#2. Bank Statements:
- For self Employment only.
- 12 – 24 months business (Generally speaking: 50% of the deposited, or 100% of Personal deposits, are considered Income)
- Proof of self employment. Not limited to, but generally, licensed, letter from CPA, website.
- These rates and fees are higher than Fannie mae, or FHA type loans.
Please note, these products may have a higher interest rate, more points or more fees than other products requiring documentation.
#3. Debt Service Coverage
- For rental properties only
- Income is solely on the income and expenses of the property.
- No other income or employment required.
- Pre-payment penalties can be bought down or paid off at closing.
#4. Asset Depletion
- Only assets are used in lieu of income.
- The amount of assets should cover the entire loan amount, OR, the amount that cannot otherwise be covered with other income.
General information:
- Interest only payments are available
- Term offered is 30 year fixed, or 5/1 or 7/1 ARMS.
- All loans require impounds.
FHA:
Property types:
Single Family Homes, 2-4 units, condo & townhomes
Loan amounts:
Maximum loan amounts set by county, and state.
Mortgage Premium Insurance required.
Credit score of 500 – 579:
Loan amounts are available up to:
- 90% of the purchase price on purchase transactions.
- 90% of the value for Refinances with no cash out.
- 80% of the value for cash out Refinance.
Credit score of 580 or higher:
Loan amounts are available up to:
- 96.5% of the value for a Refinance Loan purchase
- 96.5% of the appraised value for a Refinance with no cash out.
- 80% of the appraised value for a cash out refinance.
Income documentation:
Traditional income documentation is required.
Salary or Hourly Employees:
- 2 years w2s and year to-date paystubs.
Self Employed:
- 2 last of the last filed tax returns and year to-date Profit and Loss and Balance sheet.
Retirement:
- Social Security, Pension, IRA Distributions.
Down payment for Purchase loans
- Source of funds need to be documented.
- Gift of down payment permitted from immediate family members.
Fine print! All loans are subject to approval. Rates and terms are subject to change.
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Purchase & Refinance
It’s exciting buying a property, and we are excited to help you with the financing. If you are either buying the property for you and your family, or for investment purposes, here is some information that should help you understand what’s out there in terms of products:
Down Payment:
If you are buying the property for yourself or your family then:
- 0% – You can buy a property with zero down if you are an eligible veteran
- 3% – FHA loan or Fannie Mae or Freddie Mac’s program.
- 5% to 15% – Typically require you to obtain mortgage insurance or you end up with an interest rate that is effectively a little higher.
- 20% – the amount required to avoid mortgage insurance on a fannie mae or freddie mac type of loan.
If you are purchasing a residential property for investment purposes then:
- 15% – is possible through an institutional lender if you have a credit score or 700 or higher.
- 20% – is possible through an institutional lender if you have a credit score or 600 or higher.
Credit Scores:
- 500 – This is what is typically referred to as, Non-prime, and would likely require 35% down-payment, and would be offered at a higher than normal interest rate.
- 600 – This score opens the door to GSE type loans like FHA and Va loans.
- 620 – Is usually the score needed to get a fannie, Freddie Mac type loan.
If you are purchasing the property for investment purposes, underwriting guidelines for Credit Scores are not as formulated, but factor in to the investor’s analysis of the property and the terms they are willing to offer.
Income:
If you are purchasing a home for yourself then you must show your ability to repay your loan. That is typically based on a 43% debt-to-income ratio. There are some products that will go as high as a 50% debt-to-income ratio.
If you are purchasing a home for investment purposes then the ability of the property to pay the potential mortgage and related property expense is analyzed instead of your ability to make the payments.
Property Geographic Area Details
Loan Amounts
Loan Terms
Lien Position
Non-Traditional Mortgage Solutions for Homeowners and Property Investors
For over 20 years Nationwide Mortgage has been helping borrower’s purchase and refinance their properties. Non-Prime, or what is thought of as, “Hard Money” is primarily for consumers with one of several circumstances:
- Bruised Credit – mortgage late payments, bankruptcy, foreclosure, short sale
- Self-employed applicants with good cash flow but low taxable income
- Foreign nationals with little or no US credit history
- Unique properties – rural, agricultural, etc.
- Mixed-use buildings (for example, businesses downstairs and living quarters upstairs)
- Very large loan amounts above traditional loan limits
- Non-warrantable condominiums
- Investors with 10+ rental homes financed
- Long-Term Rentals – quality with property income, no tax return required
- Rehab Fix & Flippers
At this time, we only offer loans for properties located in 4 states:
California, Florida, Virginia, Washington.
Non-Traditional Loan Examples
Here are some examples of loans that we offer, and the general guidelines that pertain to them.
Example #1: Self-Employed / Bank Statement Program
Although income may be sufficient to qualify, a self-employed applicant may not have the traditional income documentation like tax returns to support their income. So in lieu of tax returns, personal or business bank statements can be provided to show the ability to make the mortgage payments.
- Loan Amount: $500,000
- FICO: 701
- Origination Fee: 0 points, $2,295 lender fee, plus third party fees like Title, Escrow, and Appraisal
- Term: Fixed rate for 5 years and then becomes a 1 year Adjustable Rate Mortgage
- Loan-to-Value: of 75%
- Lien position: 1st Trust Deed
General Guidelines
- Loan Amounts: $75,000 to $3,000,000
- Minimum FICO Score: 575
- Term: 30-Year Amortized & Term – 7/1 Hybrid ARM or 30-Yr Fixed
- Property Types: 1-4 Unit Single Family Residences, Condominiums, Townhomes
- Loan-to-Value: Up to 90% (based on appraisal) for credit scores 700+
- Debt-to-Income Ratio: Max of 50%
- No Pre-Payment Penalty
- No Reserves
- Impounds Required
Example #2: Low FICO Score & Low Down payment
- FICO Score: 590
- Loan Amount:$300,000
- Term: 30 Year Fixed
- Loan-to-Value: 96%
- Lien position: 1st Trust Deed
General guidelines:
- Loan Amounts: FHA loan amounts based on county limits
- Term: 5 to 30 years fixed rate terms
- Minimum FICO Score: 575
- Property Types: 1-4 Unit Residential (condominiums are subject to HUD approval)
- Loan-to-Value: Up to 96% (Based on appraisal)
- Employment: Minimum 2 years
- Income Documentation: Tax Returns, W-2’s, Pay Stubs
Example #3: Post Foreclosure or Bankruptcy Program
- Time Since Bankruptcy/Foreclosure: Event was just settled
- Loan Amount: $400,000
- Credit Score: 501
- Origination Fee: 0 points plus $1,295 lender fee, and third party fees like Title, Escrow, and Appraisal.
- Term: Fixed rate for 5 years and then becomes a 1 year Adjustable Rate Mortgage.
- Loan-to-Value: 65%
- Lien position: 1st Trust Deed
General Guidelines
- Loan Amounts: $75,000 to $3,000,000. Additional restrictions and additional costs will apply to higher loan amounts.
- Minimum FICO Score: 575. Interest rates are higher for lower credit scores and higher loan to value.
- Loan Term: 5, 7 or 30 years
- Rates are fixed for 5 years or 7 years and amortized over 30 years.
- There is an added cost for 7 year and 30 year fixed rate loans as compared to 5 year fixed rate loans.
- Property Types: 1-4 Unit Single Family Residences, & Condominiums.
- Debt-to-Income Ratio: Up to 50%
- No Pre-Payment Penalty
- Impounded tax and insurance is Required
Sub-prime, Non-Prime, Non-QM or Hard-Money
The terms sub-prime, non-prime, non-QM or hard money are often used interchangeably to describe a mortgage loan for a consumer when they can’t qualify for a traditional loan. “Qualified Mortgage” is the only government defined loan standards and refers to Traditional Fannie Mae type loans. But not everyone can qualify for this type of loan, so that’s where Non-QM, Non-Prime, sub-prime, and “Hard-money” comes in. These types of mortgage programs make it possible for consumers with unique situations to get a loan. Some of those situations involve credit problems, but not all.
There are many reasons for using non-QM financing, and not all of them involve bad (subprime) credit. Sometimes, very well-qualified applicants have difficulty proving their income — either because its source is foreign, or because the business is new, or because money that is available for a mortgage payment is deducted at tax time.
N A Nationwide Mortgage, a California Corporation is located at 1963 O’Toole Way, Suite 200, San Jose, CA 95131. (949)588-8453 Fax (949)340-8051. Unique Identifier NMLS #32417 www.nmlsconsumeraccess.org.
Real Estate Broker – CA Department of Real Estate #01247594, Performing activities for which a license is required. Colorado Responsible Individual Paul Balla #100507045. Florida Mortgage Broker License #MBR2347. Oregon Mortgage Lending License #ML-3166. Virginia Broker License #MC-5843. Washington Mortgage Broker License #MB-32417.
Noelle Wheeler, President & Broker, NMLS ID 32388 and 32417, CA DRE Broker Lic.01125188
N A Nationwide Mortgage Service Mark @1998. All rights reserved.
Property Types
- 2-4 Units Residential
- Condominium
- Single Family Residence
Loan Types
- Residential Owner-Occupied
Specialty Loan Types
- Residential Non-Prime
Junior Lien Loan Amounts
$100,000 to $5,000,000
Junior Lien Loan-to-Value
55%
Junior Lien Loan-to-Cost
95%
We Fund Junior Position Loans
Often
Junior Lien Types
- Purchase
- Refinance
Processing Fee
$795
Escrow Fee
Typically needed and depends on the transaction size.
Title Fee
Typically needed and depends on the the loan amount.
Appraisal Fee
Depends on the property type, location, speed of the appraisal.
Fees which are mandatory for all new borrower clients
- Processing Fee
- Escrow Fee
- Title Fee
Fees which are paid to a third party company
- Appraisal Fee
- Escrow Fee
- Title Fee
Nationwide Mortgage – Non Prime / Non QM / Sub Prime Testimonials
A super smooth process.
"A super smooth process. Our loan office Noelle Wheeler kept us informed through every step of our loan process. We also saved hundreds of dollars a month on our mortgage. We couldn’t be happier! Thank you Nationwide Mortgage"
Jana, B
Orange County, California
...Went back to Nationwide and closed in 3 weeks
"I started the process with Nationwide but then got a phone call from my current bank saying they would match my refinance. I figured I would just stay where I was and went with my "big bank". Three months later I walked from the closing table because nothing was what I was told it would be. Went back to Nationwide and closed in 3 weeks with lower rate and less costs. "
James, F
Sandy, Oregon
Definitely made this easy for me and are completely friendly.
"They have been excellent in the entire process. Definitely made this easy for me and are completely friendly. They work hard to make sure everything runs as smooth as possible with less stress or headaches for the customer to deal with. Thanks again!"
Anna S
Palmdale, California
Get In Touch
Stay Informed About Private Lending

Experience:
We have been in business for over decades and have helped thousands of borrowers.
Programs:
A wide range of loan products from Fannie Mae, Non-prime to Private lending. So If you don’t qualify for one program we might be able to offer you a different one.
Service:
We strive to treat every Borrower the way we want to be treated.
Established
1997
Funded to Date –
$5+ billion funded
Closed Loans –
10,000+
Office Locations
Corporate Office1963 O'Toole Way, Suite 200, San Jose, California 95131
Los Angeles Branch Office
4435 Circleview Blvd, Los Angeles, California 90043
Our Team
Noelle Wheeler
President | Broker
CA DRE Broker License - 01125188
Florida Mortgage Loan Originator - LO29466
Washington MLO - 32388
Virginia MLO - 6266VA
NMLS - 32388
Susie Bassirpou
Senior Loan Officer
CA DRE Salesperson - 01392454
Florida MLO - 100102
Washington MLO - 1998306
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