Non QM Loans
Some borrowers can’t get approval for a mortgage because of poor credit score or inconsistent/irregular income. For such borrowers, a non-qualified mortgage -- a loan tailored to consumers considered a higher risk to lenders -- may be right for you.
A non-qualified mortgage loan, also known as a non-QM loan, is also an option for borrowers interested in more creative loan types, including interest-only mortgages, and loans with longer terms.
- Document your income using bank statements
- Get competitive rates and loan amount even when you don't fit conventional financing
- Get higher loan amounts and have more flexible underwriting guidelines
- Qualify without income - use the rents of the property or just your assets
- Loan can be made to a legal entity such as an LLC or family trust
- Can be used to consolidate various mortgages into a single loan
- Mortgage insurance may not be required
- Can be used for rental properties or commercial businesses
- May not need to document income to apply.
- Qualify for a loan when you did not think you had an option
- Higher fees
- Higher interest rate
- More reserves required sometimes
- Need good credit