Six Niche Loan Products Added by First Community Mortgage

First Community Mortgage has added six loan products to its menu, each targeted to borrowers who are not eligible for a conforming or government mortgage.

"We're seeing a significant number of borrowers who certainly have the ability to repay but who nevertheless do not qualify for a conventional mortgage. We see this as a significant opportunity to add business with minimal risk," said Lorenzo Adams, First Community Mortgage assistant vice president of special projects and production analytics, in a press release.

The company is offering loans for non-warrantable condominium apartments, properties that are not approved by the government-sponsored enterprises and/or the Federal Housing Administration.

There is a bank statement program aimed at self-employed borrowers whose income fluctuates throughout the year. First Community will average the borrower's business deposits over a two-year period and compare it to the company's profit and loss statement for the same period. The lesser of the two amounts will be used to validate the borrower's income during the underwriting process.

Another new offering, the Recent Housing Events Program, allows borrowers who have made late mortgage payments because of divorce, bankruptcy, foreclosure, deed in lieu, short sales and other events to get financing.

There is also a loan for doctors and dentists who can't qualify for a conventional mortgage because of their high student debt load. Approval is on a case-by-case basis.

First Community is also offering loans to foreign nationals in the U.S. temporarily to purchase a home, and to real estate investors to finance up to 20 properties.

All six products are available through the company's retail and wholesale production channels.

First Community Mortgage will sell these loans to undisclosed investors on a servicing-released basis.

For reprint and licensing requests for this article, click here.
Originations Underwriting Consumer lending Wholesale lenders Marketing
MORE FROM NATIONAL MORTGAGE NEWS