Non-QM Loans

Non-QM stands for Non-Qualified Mortgage. These loan types have wide ranging options available to people who have situations that may not fit into the traditional mortgage loan qualifications. These mortgage programs can be an excellent solution to help someone purchase or refinance a property. The Non-QM loan does not conform to the consumer protection provisions set forth by CFPB. These loan types have a greater risk to the lenders so because of that, they will generally have a higher rate of interest and require a larger down payment. Non-QM loans are not insured, guaranteed, or backed by Fannie Mae, Freddie Mac, FHA or the VA.

Why are Non-QM loans so great?

If you have a unique income circumstance such as fluctuating income, an income source that cannot be verified in the traditional manner, real estate investor, self-employed, have a higher level of debt, freelance worker or 1099 employee, then there are other ways to help qualify you for a home loan using the Non-QM loan type. Your overall credit and assessment of your ability to repay the mortgage is still evaluated, and verifications are still performed, but there are different criteria reviewed to determine if this loan type will be a great solution to help you purchase or refinance the property. This loan type is available for 1-4 family properties.

• Bank statement loans
• 1099 loans
• Interest only loan options available
• Alternative documentation loans
• 10% down payment
• Credit scores down to 620
• Non-warrantable condo’s may be allowed
• Debt to income ratio’s up to 50% on select programs
• Allowed for primary and investment property purchases and refinances
• Can be used for a cash out refinance or rate and term reduction refinance
• Loan amounts above the standard county loan limits including Jumbo loan amounts

** Every borrower is unique. You should speak with a qualified mortgage advisor experienced in working with Non-QM loan types to determine the loan program options available to you.