My Job, Income, Citizenship or Credit Score Doesn’t Meet Mortgage Requirements: Myth or Reality?

Borrowers who are self-employed or low-income, immigrants or foreign nationals, or unsure if they have a high enough credit score for a mortgage might think their dream home is out of reach. But are those rigid home loan requirements a myth or reality?

Let’s debunk the idea that getting a mortgage with irregular income or low-income, a credit score below 700, or as an immigrant is impossible. The reality is — you can get a home loan. You just need to change your approach.

We’ll take you through the most common myths that surround home loan requirements, and why good borrowers may believe their mortgage application may be rejected. You’ll realize that at Quontic, these barriers to home loans are oftentimes just myths.

Myth: A credit score in the 600’s isn’t a high enough credit score for a mortgage.

You might’ve been told that you can’t qualify for a loan if your credit score is in the 600’s or below. But that’s not necessarily the case.

So what credit score is needed to buy a house? At Quontic, the answer isn’t so simple. While other banks may immediately reject a borrower with a credit score below 700, we understand that every individual has a story to tell. So, we look at your entire financial portfolio in order to make the proper assessment.

A financial portfolio may include your income documentation, asset statements, down payment, and W-2’s. By taking these extra steps that most banks don’t, we’re able to catch deserving borrowers who were filtered out by the conventional approvals system and confirm that they have a good enough credit score needed for home loan.

Myth: Home loans for self employed or low-income borrowers don’t exist.

Quontic is one of the top mortgage lenders for the self-employed. We understand that self-employed borrowers may not be able to produce the exact same income documentation as someone who brings in traditional income. Having a 1099 in your mortgage application doesn’t mean you’re not a good borrower, who is worthy of buying your dream home!

Getting a mortgage while self employed has become more and more common, as 2020 saw people changing careers and becoming self employed — Not to mention how the pandemic affected plenty of small business owners. And if you’re applying for a loan, one bad year can stain your entire record. That’s why we look at the big picture, and we check previous years of financials.

Myth: You can’t use gift money for a down payment on a mortgage.

By virtue of having a diverse staff and getting our start in one of the most diverse cities in the nation (NYC), Quontic works with many different borrowers who have different financial needs. For example, if you’re an immigrant who wishes to use a gift for your entire down payment. This can be huge for someone who gets approved, but can’t afford the down payment on their own. Time and time again, we’ve helped close the deal for borrowers whose families pool money and wish to use a gift fund for a down payment.

How do we do it?

Quontic is one of less than 3% of banks in the United States that have Community Development Financial Institutions (CDFI) status. This allows us to provide what we call Community Development Loans. These loans are designed to help people who aren’t able to qualify for conventional loans. And they work. They’re tested by design with an extremely low historical default rate – even through COVID. We provide significant income documentation relief, though the interest rate on a loan like this would be a little higher than they would be on a normal loan.

When one door closes, another opens. That’s what borrowers who are self-employed or low-income, immigrants, or with a credit score in the 600’s have learned when other banks told them “no,” and Quontic came back with a “yes” on their home loans.

We understand that home loans aren’t one size fits all, but everyone — no matter their employment, income, or citizenship status — deserves the home of their dreams. The only thing your employment situation or financial background should affect when it comes to meeting home loan requirements is your approach to securing a home mortgage. This is where we step in.

At Quontic, we have loans that fit nearly every lifestyle and every financial background. And if we’re not able to lend to you, we’re at lease able to offer education so that you can come back when you’re ready. To speak to somebody about getting the process started, visit our website today.

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