Logan Finance Corp., a nonqualified mortgage (non-QM) lender, has unveiled an innovative series of loan products designed to cater to borrowers who do not meet conventional lending criteria. The new product suite, named ‘Open Road,’ offers seven distinct mortgage options aimed at self-employed individuals, real estate investors, and international homebuyers.
Logan Finance’s initiative seeks to address a significant gap in the financial market that affects millions of creditworthy borrowers who are unable to qualify for standard loans. Don Pace, CEO at Logan Finance, explained the rationale behind the launch, stating, ‘Every day, mortgage brokers and mortgage lenders encounter talented entrepreneurs, successful investors, and international buyers who deserve homeownership but can’t check the conventional boxes. Our Open Road series recognizes that the path to homeownership has evolved, and our lending solutions need to as well.’
The introduction of the Open Road series comes at a crucial time when traditional underwriting models struggle to accommodate a rapidly changing borrower landscape. According to the National Employment Law Project, more than 16.75 million Americans are self-employed, a group often excluded by traditional income verification rules that rely on W-2 wages or tax returns.
The Open Road series features various offerings to accommodate different borrower needs:
Asset Qualification (Beyond): This option allows borrowers to qualify using retirement accounts and other assets, providing flexibility beyond traditional income verification methods.
Bank Statement (Overland): For self-employed individuals, this product uses 12 to 24 months of bank statements in place of tax returns to verify income, offering a more accurate representation of their financial standing.
Condotel (Horizon): This product offers up to 75% loan-to-value (LTV) financing for condo-hotels and resort properties, catering to investors in the hospitality sector.
DSCR (Autobahn): Geared towards short-term rental investors, this option provides loan amounts up to $1.5 million at 70% LTV, supporting those investing in rental properties.
DSCR: No-Ratio (Accelerate): This innovative offering qualifies investors using only credit score, LTV, and reserves, eliminating the need for income documentation.
Full Doc (Roam): Available for borrowers with complex income structures, this product allows for loan amounts up to $3 million, accommodating higher-value real estate transactions.
P&L (Reach): This option accepts CPA-prepared profit-and-loss statements as income documentation, facilitating loans for businesses with detailed financial records.
Bobby Love, President of Logan Finance, highlighted the company’s commitment to real-world solutions, stating, ‘We’ve built solutions that work in the real world. Our scenario desk handles income calculations within 24 hours, our underwriters specialize in each product type, and we provide white-label marketing materials brokers and correspondents can use immediately. We’re not just offering products — we’re offering a partnership.’
In addition to the product suite, Logan Finance offers support tools for mortgage brokers and correspondent lenders. These include same-day loan scenario analysis, a dedicated condo review desk, custom marketing materials, training programs, and integration with major mortgage tech platforms.
The Open Road suite is now accessible through Logan Finance’s wholesale and correspondent channels, providing a comprehensive solution for nontraditional borrowers seeking homeownership opportunities.
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Note: This article is inspired by content from https://www.housingwire.com/articles/logan-finance-launches-mortgage-product-suite-for-nontraditional-borrowers/. It has been rephrased for originality. Images are credited to the original source.