A Non QM loan also referred to as a Non Qualified Mortgage loan is the opposite of a conventional mortgage, FHA, or VA loan which are all considered qualified mortgage loans.
Non QM loans are not necessarily higher-risk loans. It simply means that the loan does not meet the definition or requirements of a qualified mortgage loan. Generally, non-QM loans are designed today to offset some of the risks of the past.
Non-QM Loans are best suited for special situations such as higher debt to income ratio which may not qualify for a qualified mortgage loan.
Some borrowers may not have sufficient income but may qualify based on their assets, investments, and liquid cash to make mortgage payments.
At the request of the borrower, we may recommend a non-QM loan product if the borrower is unable to qualify for a qualifying mortgage loan. These types of loans are ideally suited to those who are business owners or do not otherwise qualify. Keep in mind that a non-QM loan is usually higher-priced and may be subject to higher closing costs.
More often than not, a non-QM loan is best suited to borrowers who fit one of the following three situations:
All brokers, loans and lenders are not equal, which is why it’s important to have the right brokerage team on your side.
Any salaried, self-employed or professional Public and Private companies, Government sector employees including Public Sector is eligible for a home mortgage. We even have programs for Veteran and retired folks.
Down payment starting from 20% based on program selected
The minimum credit score range from 580 > 620 or better
Prior bankruptcies can still qualify
Other conditions may apply on a case-by-case basis and are subject to lenders’ qualification criteria and your specific situation
