Non-QM Loans
Non-QM Financing
If you have a low credit score, a high debt-to-income ratio or an income that varies enough for a traditional mortgage not to be an option, a nonqualified loan may be the right fit for you.
Characteristics of Non-QM Mortgage
Alternative income documenation may be used.
Non-QM loans aren’t insured, guaranteed or backed by the FHA, the VA, Fannie Mae or Freddie Mac.
Looser credit requirements.
Higher Debt Limits.
Non-Qualified Mortgage
A non-qualified mortgage is a type of mortgage that doesn’t conform to certain standards set by the Consumer Financial Protection Bureau (CFPB). These standards mandate certain features loans may (or may not) have, and delineate certain practices lenders must follow in evaluating applicants’ finances and ability to repay.
While the process for verifying income for a qualified loan typically involves reviewing tax returns, W-2’s and pay stubs, the process for non-QM loans is slightly different. Using manual underwriting, lenders may allow borrowers to demonstrate their ability to repay the loan using alternative forms of income documentation, such as bank/investment account statements, 1099s, receipts from rents or leases or other business receivables.
See if a Non-QM loan is right for you
At GlenLakes Mortgage we have all the resources needed to make your dream a reality. Contact one of our experienced mortgage professionals to see if a Non-QM loan is a good option for you.
FAQs about Non-QM Loans
Bank statement loans allow self-employed borrowers to apply for a home loan without having to provide pay stubs and W-2’s from the past two years of employment. Lenders look at the borrower’s bank statements to determine if they can produce sufficient income to warrant approval for a mortgage loan.
A 1099 income loan is for self-employed or independent contract workers who have difficulty qualifying for a conventional mortgage loan. Lenders look at income from a 1099 instead of tax returns.
A DSCR loan is a measure of the cash flow a borrower has to pay against current debt obligations for an investment property. A DSCR loan is a type of non-QM loan used by real estate investors to help them qualify for a loan based on their property’s cash flow, without having to verify personal income.
Other Loan Types
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