It looks like Sprout Mortgage’s announcement last week that it was unveiling a new jumbo mortgage program was just the first step in a reversal of the lending break the company took in March.
Sprout announced Tuesday that it is rolling out four new non-QM offerings.
According to the company, the four new loan programs are “engineered to meet the needs of non-QM borrowers — and the mortgage professionals who serve them — in the current challenging markets.”
In a release, the company said that the programs replace the company’s previous non-QM offerings and take effect on May 27, 2020.
According to the company, the programs carry a maximum loan-to-value ratio of 80%. Additionally, loans of up to $4 million are available at lower LTV ratios.
The four new programs include:
- Select Jumbo Full Doc – For income documented with paystubs and tax returns
- Select Bank Statements or 1099 – Typically for the self-employed
- Select Asset Optimizer – For high net-worth borrowers
- Inve$tor Debt Service Coverage – Designed for investment properties
“We’re excited to be making these four new non-QM programs available to our clients so that they can provide their borrowers with a full range of mortgage options,” Sprout President Michael Strauss said. “These programs were developed to serve the unmet home finance needs of many consumers who are currently shut out of the home financing market, but who are creditworthy borrowers.”
Sprout was among several companies that froze their non-Qualified Mortgage lending activities in March as COVID-19 began shutting down the U.S. economy. At the end of the month, Sprout paused its lending activities but by May the company was lending again.
