Non-QM Home Loans

A Non-QM (Non-Qualified Mortgage) home loan is a type of mortgage that does not meet the strict criteria set by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages (QM). These loans are designed to provide flexible financing options for borrowers who may not fit traditional lending criteria, such as those with unique financial situations or non-standard income sources. Non-QM loans offer more lenient requirements and can be an excellent solution for individuals who need tailored financing to secure their dream home.

• Flexible Qualification Criteria
  • Non-QM loans offer more flexible underwriting standards, allowing borrowers with non-traditional income sources, such as self-employment, rental income, or investment earnings, to qualify for a mortgage.
• Accommodates Unique Financial Situations
  • These loans are ideal for borrowers with irregular income, such as freelancers or gig economy workers, as well as those with recent credit events or high net worth but low documented income.
• Variety of Loan Products
  • Non-QM loans come in various forms, including interest-only loans, balloon mortgages, and loans with alternative income verification, giving you options to find the best fit for your financial needs.
• Higher Loan Limits
  • Non-QM loans can offer higher loan amounts compared to traditional QM loans, making it easier to finance higher-priced properties or investment opportunities.
• Customizable Loan Terms
  • With Non-QM loans, you can often negotiate more flexible loan terms and repayment options, tailored to your specific financial situation and goals.
• Faster Approval Process
  • The less stringent qualification requirements may lead to a quicker approval process, helping you secure financing and close on your home faster.

To qualify for a Non-QM home loan, borrowers generally need to meet the following criteria:

• Alternative Income Verification: Non-QM loans allow for alternative documentation of income, such as bank statements, asset documentation, or profit and loss statements, rather than traditional W-2s or tax returns.
• Credit Score: While credit score requirements can vary, borrowers with lower credit scores may still qualify for a Non-QM loan, though higher scores are preferred for better terms.
• Down Payment: Down payment requirements for Non-QM loans may be higher than traditional loans, often ranging from 10-20%, depending on the lender and the loan type.
• Property Type: Non-QM loans can be used for various property types, including primary residences, second homes, and investment properties.
• Debt-to-Income Ratio (DTI): Non-QM loans offer flexibility with DTI ratios, allowing borrowers with higher ratios to qualify based on their overall financial profile.

Non-QM home loans offer a flexible and adaptable financing solution for borrowers who may not meet the strict criteria of Qualified Mortgages. With options for alternative income verification, customizable terms, and higher loan limits, Non-QM loans can help you secure the financing you need for your unique financial situation or property goals. Whether you’re self-employed, have a non-traditional income, or need higher loan amounts, a Non-QM loan can provide the flexibility and support to achieve your homeownership dreams.

For more information or to start your Non-QM home loan application, contact us today. We are here to help you navigate the flexible financing options and find the best solution for your needs!