LINK Loan – Transitional Home Loan Solution

Say goodbye to lending barriers that disqualify borrowers under traditional guidelines-and say hello to LINK, a transitional loan program designed with flexibility and creative solutions in mind. The LINK loan helps approve borrowers that many other mortgage lenders turn down.

 

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Examples of Program Flexibility

  • Variable Income

Traditional lending guidelines require a two-year average for variable income (e.g., commissions, overtime, bonuses, tips, piece rate, mileage pay, secondary jobs and self-employment). The LINK program uses a year-to-date average of all income, and allows self-employment income with as little as 4 months of documentation.

 

  • Employment History

While traditional loans require a consistent two-year employment history, LINK offers flexibility. For example, immigrants with U.S. work authorization who’ve been employed for at least 12 months can qualify using only their U.S.-based income-no need to verify employment history from their home country.

 

  • Citizenship and Immigration Status

Eligible Borrowers include:

  • US Citizens
  • Lawful Permanent Residents
  • Non-Permanent Residents with valid work authorization and a Social Security Number.
  • ITIN holders

 

  • Bankruptcy Foreclosure, or Short Sale

NO active bankruptcy, foreclosure, or short sale is allowed. However, borrowers are eligible once the event is discharged, satisfaction and reported on their credit report.

 

  • Credit Score Requirements:

Rate tiers are as follows:

  • 600-639 (includes no score ITIN borrowers)
  • 640-679,
  • 680+

Minimum scores:

  • 600 for wage earners
  • 660 for Self-employed borrowers
  • 680 for homes priced above $750,000

ITIN borrowers with no credit score must verify either:

  • One active and current tradeline open for at least 12 months, or
  • One current utility bill paid on time for 12 consecutive months.

 

Ideal Borrowers for the LINK Loan

This loan is designed for borrowers who may not qualify under traditional criteria, including:

  • First-time homebuyers
  • Self-employed individuals
  • 1099/side income workers
  • Those relocating or starting a new job
  • Recent college graduates
  • Borrowers with student loan burdens
  • ITIN/DACA recipients and non-resident aliens
  • Borrowers with prior credit issues

 

Key Loan Features

  • DTI Ratios: Up to 42% housing and 55% total debt. Housing ratio may be reduced to 38% based on factors such as self-employment, Prior bankruptcy, foreclosure or Short sale in last 3 years, no credit score, household income under $50,000, or significant payment shock (200%+).
  • Term: 40-year fixed loan term
  • Refinancing: Borrowers can refinance into a traditional mortgage once eligible

 

Program Overview

The LINK Loan is a transitional pathway to homeownership, allowing buyers to enter a Contract for Deed while working toward traditional loan qualification. Under this arrangement:

  • The borrower does not receive the title initially
  • Title transfers once the loan is refinanced, fully paid over 40 years, or upon sale of the property
  • Monthly payments include:
    • Loan servicing fee
    • Renter’s insurance
    • Payment protection insurance

This structure gives credit- or income-challenged borrowers the chance to become homeowners while building toward traditional loan eligibility.

 

Conclusion  

If you know someone who’s been told to “wait a little longer” due to credit issues or non-traditional income, the LINK Loan might be the perfect solution.

 

Ready to take the next step?

Call me at (801) 913-6502 or click here to apply online today!