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Debunking Mortgage Financing Misconceptions

There are a number of mortgage wholesale solutions for those who do not fall under government agency guidelines. What many homeowners do not realize is that the majority of non-agency mortgages in major metropolitan areas are classified as non-agency not due to the poor credit quality or the inability of a borrower to repay their loans, but just due to the average selling price of a home. A number of home buyers do not meet traditional mortgage financing criteria, and thus become labeled non-prime or non-agency, for issues that are smaller and in some cases of little significance than what most realize.

When it comes to buying a house now, non-agency wholesale mortgage financing companies like Angel Oak Mortgage Solutions dedicate themselves to providing mortgage financing options for those left behind by institutional lenders. Wage growth, low unemployment and new relaxed standards for mortgage credit have helped drive housing demand. This has affected the nation in determining whether or not modern home buyers are fit enough to take on the hefty investment in home buying.

Don’t let a low credit score or a high down payment scare you away

You don’t need perfect credit. Conventional loans require a score of at least 620; for loans backed by the Federal Housing Administration (FHA) only require a score of 580 for approval. The interest rate that you’ll pay on the loan is also determined by your score. Therefore, you’ll end up saving in the long run if you make sure your credit is in the best possible shape before you buy. You can raise your score by making sure to make your payments on time every month and paying as far above the minimum payment as possible.

Also, homebuyers these days are beginning to realize that they don’t need a 20% down payment for a home, and that putting 20% down toward a home could cripple their ability to meet mortgage payments and jeopardize their finances. Even with FHA loans, homebuyers can qualify with as little as a 3.5% down payment, and many non-QM loans offer mortgages with no down payment at all.


Angel Oak offers several wholesale non-qualified mortgage lending options, allowing partnered mortgage brokers the ability to offer alternative lending programs to low credit mortgage borrowers who may not meet general agency financing guidelines. Though the great recession made certain lending standards more restrictive, Angel Oak’s leading alternative lending programs offer a wide range of solutions for the modern homebuyer, including:

  • Non-Prime/Recent Housing Event
  • Portfolio Select/Alt-A
  • Bank Statement (Personal or Business)
  • Investor Cash Flow
  • Foreign National

Learn more about these solutions

Alternative wholesale lending options such as those provided by firms like Angel Oak Mortgage Solutions can play a major role in in supporting the growth in millennial homeownership.


Angel Oak Mortgage Solutions stands out by being the #1 non-QM lender in the nation as of last year. We offer correspondent alternative mortgage lending programs to help your borrowers who may not meet general agency financing guidelines. With our guidance, you’ll be able to expand your product offering and grow your business with our tailored programs that not only emphasize fintech but can help you get started on new fintech innovations. We offer a number of alternative mortgage lending programs geared toward correspondent mortgage lenders.

A non-qualified mortgage (non-QM) is any home loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on qualified mortgages (QM). Usually this type of correspondent mortgage loan accommodates people who are not able to prove they are capable of making the mortgage payments.

Just because it is a non-QM correspondent mortgage loan does not necessarily mean high risk or subprime mortgage risk, and in many cases these correspondent mortgage loans require a high FICO score but simply do not check all the boxes associated with a correspondent QM loan. The main difference between the two types of correspondent mortgage loans is that correspondent non-QM loans for mortgages are protected by the lender against any type of lawsuit should you become unable to afford the mortgage loan.



Angel Oak Companies is an industry leader in delivering innovative mortgage credit solutions. Through our integrated platform, we deliver solutions across asset management, mortgage lending and capital markets.

Angel Oak Mortgage Solutions offers a breadth of alternative lending products to allow our clients to grow their business and better serve their customers. We re-connect qualified home buyers with the investor community to create a win/win/win for the borrower, originator and investor. As a highly entrepreneurial organization, we are able to quickly adapt to the needs of our clients and embrace a strong service-based culture.

Angel Oak Mortgage Solutions currently offers alternative correspondent mortgage lending services across Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.