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New Penn Financial Launches Non-QM Loan Product

AUG 13, 2014 11:10am ET
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New Penn Financial a national nonbank lender in Plymouth Meeting, Pa., has introduced a loan product for buyers who do not comply with the qualified mortgage criteria that took effect in January.

"Home Buyer Power creates mortgage lending opportunities for customers with strong credit who fall outside the very specific criteria required for QM loans," even though they have strong income and may have a high debt-to-income ratio, said Brian Simon of New Penn Financial.

This product targets "high-end customers who may be paying expensive metro-area rents" because they have the income, but may also have "higher-than-average debt obligations," Simon said.

The product features an interest-only option, and buyers with debt-to-income ratios as high as 55% at 80% loan-to-value may qualify for loans.

Non-QM loans help broaden the pool of eligible customers who will provide full income documentation, demonstrate strong credit scores, and meet additional guidelines that indicate their ability to repay, the company said. New Penn also said that it plans to introduce a series of other types of non-QM loan products.

Comments (1)
insanity begins.............again. who says history does not repeat itself? Why don t they lend in Iraq? Lots of buyers there
Posted by jvoisard | Wednesday, August 13 2014 at 2:10PM ET
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