NON-QM Loans
A Non-QM or Non-Qualified Mortgage is a loan that does not meet the Consumer Financial Protection Bureau’s present rules on Qualified Mortgages. It offers alternative qualification methods for borrowers who do not fit conventional mortgage standards, including those with fluctuating, lump-sum, or self-employed income.
Who They Benefit
- Self-Employed: Less than two years or with irregular income; bank statements may be used instead of tax returns.
- Prime Borrowers: High credit scores, interest-only payments, or higher debt-to-income ratios.
- Borrowers with Substantial Assets: Maintain cash flow without paying cash upfront for a home.
- Buyers with FICO Score Issues: Sufficient income but credit issues due to bankruptcy, foreclosure, or other hardships.
- Real Estate Investors: Homes for flipping or rentals, with qualifying income from estimated rent.
- Foreign Buyers: Non-US residents with high income, substantial assets, and large down payments.
Benefits of Non-QM Loans
- Provides funding for self-employed and non-traditional income borrowers.
- Alternative income verification options available.
- Flexible underwriting guidelines.
- Multiple fixed-rate and adjustable loan options.
- Loan maximum up to $2.5 million.
- Cash-out refinance up to $500,000.
- Quick closing comparable to conventional loans.
- Can be used to free up cash for investments.
- No mortgage insurance required.
- Finance new homes, second homes, or investment properties.
- Loans can be made to family trusts or legal entities.
- Keep cash assets liquid and diversify investments; mortgage interest may be deductible.
- Protection against market declines and financial loss.
Expert Help
If you feel that you do not fit the guidelines for a conventional mortgage, contact Buy Low Rate Mortgage today for expert advice and assistance with Non-QM loans.