Deal Killers:
Property & Transaction Deal Killers
Identifying potential issues that may appear after the borrower has already been approved.
Property Eligibility
Not every property qualifies.
Review early:
✓ Property type
✓ Occupancy
✓ Condo eligibility
✓ Acreage limitations
✓ Mixed-use considerations
Appraisal Issues
Appraisals create some of the most common closing delays.
Potential concerns include:
✓ Value support
✓ Condition issues
✓ Incomplete work
✓ Marketability concerns
✓ Unique properties
The goal is to identify potential concerns before the appraisal is ordered.
Pricing & Overlay Assumptions
One of the most dangerous mistakes.
Assuming one lender’s flexibility applies everywhere.
Programs are not interchangeable.
Differences may include:
Minimum credit score
Maximum LTV or loan amounts
Reserve requirements
Property eligibility
DSCR thresholds
Citizenship rules
Vesting requirements
Many potential issues can be solved simply be checking with the lender up front.
Vesting & Ownership
Ownership structure is important and should be reviewed at the beginning.
Examples include:
✓ LLC ownership
✓ Trust ownership
✓ Recent transfers
✓ Entity structures
Many potential issues can be solved when addressed early.
Common examples:
✓ Liens
✓ Judgments
✓ Ownership discrepancies
✓ Unresolved title matters
These often become last-minute surprises.
Title Issues
The Deal Killer Checklist
✓ Borrower eligibility
✓ Reserve requirements
✓ Source of funds
✓ Occupancy
✓ Property eligibility
✓ Vesting structure
✓ Title concerns
✓ Required documentation
Before submitting ANY Non-QM loan, verify:
This simple review process prevents many avoidable problems.
Key Takeaways
✓ Most deal killers are preventable
✓ Early discovery creates options
✓ Late discovery creates problems
✓ Clean files receive cleaner approvals
✓ Control starts before submission
You now understand how borrowers qualify, where flexibility exists, and what commonly derails transactions.
Next, we'll bring everything together using the Non-QM Gold Framework- the repeatable process used to evaluate, structure, and control Non-QM files from initial conversation through closing.