Alternative Real Estate Financing for California Investors
Xcel Funding provides business-purpose Non-QM financing for real estate investors, property owners and business-purpose borrowers throughout California.
Non-QM programs can provide alternative financing options when a real estate transaction does not fit traditional lending guidelines, with loan structures that may consider property cash flow, assets, bank statements or other qualifying factors depending on the program.
What is a Business Purpose Non-QM Loan?
A business-purpose Non-QM loan is real estate financing used for investment or other qualifying business purposes that does not follow the standard underwriting requirements associated with traditional qualified mortgage programs.
These programs can provide additional financing options for real estate investors, self-employed borrowers, property owners and business-purpose borrowers whose transactions may not fit conventional lending guidelines.
Qualification varies by loan program and may consider factors such as property cash flow, rental income, bank statements, assets, credit profile, property value and the overall transaction.
Who Uses Business-Purpose Non-QM Financing?
Business-purpose Non-QM financing may be useful for a variety of real estate investment scenarios, including:
- Real Estate Investors: Borrowers purchasing or refinancing rental and investment properties.
- Self-Employed Investors: Borrowers whose traditional tax-return income may not reflect their overall financial profile.
- Property Owners: Investors seeking financing for properties or transactions that may not fit conventional lending guidelines.
- Real Estate Entities: Depending on the program, financing may be available to qualifying LLCs and other business entities.
- Portfolio Investors: Real estate investors financing multiple rental or investment properties.
Types of Business-Purpose Non-QM Financing
Available Non-QM programs vary by lender and transaction. Financing options may include:
- DSCR Loans: Investment-property financing that generally focuses primarily on qualifying rental income relative to the property's applicable housing expense.
- Bank Statement Programs: Programs that may use qualifying bank-deposit activity as an alternative method of evaluating income or cash flow.
- Asset-Based Programs: Certain programs may consider qualifying assets as part of the underwriting process.
- Investment Property Loans: Alternative financing for rental properties and other qualifying real estate investments.
- Business-Purpose Refinancing: Financing that may be used to refinance qualifying investment or business-purpose real estate.
Program availability, documentation requirements and qualification standards vary by lender and loan program.
How Are Business-Purpose Non-QM Loans Evaluated?
Non-QM does not mean that a loan has no underwriting requirements. These loans are still evaluated based on the borrower, property, transaction and applicable loan program.
Factors that may be considered include:
- Property Value: The value of the real estate securing the loan.
- Property Income: Rental or other qualifying property income when applicable.
- Credit Profile: Borrower credit history and other credit characteristics.
- Liquidity and Reserves: Available funds and required reserves may be evaluated.
- Loan-to-Value: The relationship between the requested loan amount and property value.
- Alternative Documentation: Depending on the program, bank statements, assets or other documentation may be considered.
- Investment Strategy: The property's intended use and the borrower's business or investment plan.
Business-Purpose Non-QM vs. Traditional Mortgage Financing
Traditional mortgage programs generally follow standardized income, documentation and underwriting requirements. Business-purpose Non-QM financing can provide alternative methods of evaluating qualifying real estate transactions.
The appropriate financing structure depends on the property, borrower, loan purpose and investment strategy. Non-QM financing is not automatically easier to qualify for; credit, equity, reserves, property characteristics and other underwriting requirements may still apply.
Non-QM Financing Through Xcel Funding
Xcel Funding LLC provides business-purpose Non-QM financing for real estate investors, property owners and qualifying business-purpose borrowers throughout California.
Tell us about the property, financing need and investment strategy. We can discuss potential Non-QM financing options based on the transaction and applicable loan programs.
Xcel Funding LLC | California Finance Lender Lic. #60DBO-202689
Alternative Qualification
Programs may use property income, bank statements, assets or other qualifying factors.
Investor-Focused Financing
Designed for rental properties and other qualifying real estate investments.
Entity Financing Options
Certain programs may permit qualifying LLCs and other business entities.
Flexible Loan Structures
Alternative financing options for transactions that may not fit traditional guidelines.
Looking for a Business-Purpose Non-QM Loan?
Have an investment property or real estate transaction that doesn’t fit traditional lending guidelines? Tell us about the property, financing need and investment strategy to discuss potential Non-QM financing options.