A Non-Qualified Mortgage (Non-QM) is a loan that doesn’t meet the standards of a qualified mortgage and uses non-traditional methods of income verification to help a borrower get approved for a home loan.
Non-QM loans fill the gap for borrowers who may be self-employed, have non-traditional income, or have had difficulty qualifying for a QM loan due to credit issues in the past. Non-QM loans have underwriting guidelines that allow the lender to view the “bigger picture” of your financial history thus determining a borrower’s ability to repay in a slightly different lens than usual.
We’re here to make the (Non-QM) home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE (Non-QM) Loan Qualifier.
We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you whether you’re a first-time home buyer or a seasoned investor.
Here’s how our home loan process works:
Before you can understand what a Non-Qualified Mortgage (Non-QM) is you first we need to understand what a Qualified Mortgage (QM) is. A Qualified Mortgage has typical standards that require W2 income, 2-year tax returns, dept to income no more than 43%, etc. These minimum standards for a qualified mortgages are part of the 2010 Consumer Protection Act and Dodd-Frank Wall Street Reform Act brought on by the Great Recession in 2008. However not everyone fits these standards.