Non-Qualified Mortgage (Non-QM) loans are typically for borrowers with unique income qualifying circumstances. There are millions of people who may have the income but don't qualify with their tax returns, W-2s or pay stubs alone.
Many people have fluctuating incomes, lump sum incomes or are self-employed such as independent business owners, entrepreneurs, contractors, hospitality workers, retirees, actors, artists, musicians, etc.
Self-employed borrowers are often paid sporadically and have more than one stream of income, which makes it difficult for them to obtain a qualified mortgage. These individuals typically turn to loans based on their bank statements as opposed to their tax returns.
Prime borrowers are often keen to take advantage of Non-QM loans since they usually have great credit but are looking to take on a loan that may have interest-only payments or who have a higher than normal debt-to-income ratio.
Near or non-prime borrowers who don’t have enough credit, a prior bankruptcy, or distressed property sale within the last two years are often good candidates for Non-QM loans.
Borrowers with sizable assets and prime credit may decide on a non-QM loan in order to maintain a positive cash flow rather than just buying the home in cash.
Non-QM loans can fill the niche for those who don't necessarily fit into the "qualified-mortgage box." A qualified mortgage follows rules set by the CFPB and Federal Government; however, a Non-QM loan use alternate methods of income verification to help you get approved for a mortgage loan.
Full Documentation (same as qualified mortgages)
One-Year Tax Return Program
Bank Statement Program
Asset Depletion (purchase or rate-and-term refinance only, owner-occupied or second homes)
Ideal for self employed and or people with non-traditional financial circumstances
We can assess your individual employment, asset and income profile to determine if this product is right for you. It fits a broad range of potential consumers, so speak with a lending professional to determine your eligibility today.
The Non-QM loan can be used for a rate-and-term refinance, a cash out refinance, a new home purchase for owner-occupied or second homes.
Give us a call to learn more about how a Non-QM loan might be the right home financing solution for you.