Non-QM Loans

Alternative mortgage solutions for borrowers with unique financial situations who don't fit into the strict guidelines of traditional lending.

What is a Non-QM Loan?

A Non-Qualified Mortgage is a loan that does not meet the strict Consumer Financial Protection Bureau (CFPB) guidelines for standard mortgages. These loans use alternative methods to verify income and ability to repay, offering flexibility for non-traditional borrowers.

Who Can Benefit?

• Self-employed borrowers with complex tax returns.
• Real estate investors (e.g., DSCR loans).
• Borrowers with recent credit events (bankruptcy, foreclosure).
• Foreign nationals looking to purchase U.S. property.
• Retirees using asset depletion to qualify.

Who is Eligible?

• Borrowers with non-traditional income sources (self-employed, gig workers, retirees).
• Investors with multiple properties.
• Foreign nationals without U.S. credit history.
• Borrowers recovering from a recent credit event (bankruptcy, foreclosure, short sale).
• Those who need higher debt-to-income (DTI) ratio allowances.

What is the Process?

1. Consultation: We review your unique financial situation to determine which Non-QM program fits best (Asset Depletion, Bank Statement, DSCR, etc.).
2. Alternative Documentation: Instead of standard W-2s, we gather alternative proof of ability to repay (bank statements, CPA letters, asset statements).
3. Pre-Approval: We issue a pre-approval based on the specific Non-QM guidelines.
4. Underwriting: A specialized underwriter reviews the alternative documentation to ensure the loan makes sense and meets the investor's criteria.
5. Closing: You sign the final paperwork and secure your financing.

Is Mortgage Insurance Required?

Most Non-QM loans do not require traditional Private Mortgage Insurance (PMI), even if the down payment is less than 20%. However, to offset the risk, lenders may require a slightly larger down payment (e.g., 10-15%) or charge a slightly higher interest rate compared to conventional conforming loans.