Non-QM Mortgage Loans
RESIDENTIAL, MULTIFAMILY, COMMERCIAL & INVESTMENT PROPERTY LENDING
Non-QM Mortgage Loans
A Non-Qualified Mortgage loan is a home loan that does not conform to the underwriting guidelines set forth by the government-sponsored enterprises Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).
These types of loans are typically offered to borrowers who have good credit and funds for a large down payment yet do not qualify for conforming loans due to lack of documented income.
Who would be ideal for this type of loan?
Self-Employed/Small Business Owner
Volatile or Irregular Income
Retired
Seasonal & Gig Workers
Real Estate Investors
Owners & Employees of Cash Businesses
Newly Self-Employed
Recent Immigration
Disqualified Income
Non-QM Loan Advantages
- An option if you are unable to qualify for a conforming mortgage.
- Flexible Qualification Methods such as: a CPA letter, Bank Statements, 1 year tax returns, 1099 only
- Great loan for those who make good income but don't show it on their taxes
- Newly self-employed borrowers NOT having to wait for the required 2 years of self employment history to qualify
Non-QM Loan Disadvantages
- A minimum down payment of 20% or more.
- Minimum Fico Score for most programs is 660
- A higher mortgage interest rate.
