NON-QM LOANS
Home Loans for Uniquely Qualified Clients
A non-qualified mortgage (non-QM) is a home loan designed to help homebuyers who don't have all the necessary documentation to qualify for a traditional mortgage or cannot meet the strict criteria of a qualifying mortgage.
Non-QM Loans Are Ideal for:
Clients who are self-employed
Clients with high net worth
Clients investing in multiple rental units
Clients who are foreign nationals
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Accessible Home Loans
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Down payments as low as 20%
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Available in Jumbo loans​
Flexible Loan Options
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Choice of Fixed-Rate or Adjustable-Rate Mortgages (ARMs)
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Can be used on all residential property types up to four units
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Available to most clients, whether first-time or seasoned homebuyers
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Optional escrow account to pay taxes and insurance directly
A Fixed-Rate Mortgage has an interest rate that remains the same for the life of the loan. An Adjustable-Rate Mortgage (ARM) is a home loan with an interest rate that can change periodically.
Qualification Requirements
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Minimum 760 credit score
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Debt-to-Income (DTI) 43%​
Benefits for First-Time Homebuyers
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Access to special home loan assistance programs
Non-QM loans are ideal for uniquely qualified clients, including:​
Clients who are self-employed. Instead of tax returns, non-QM loans require 12–14 months of bank statements to verify income.
Clients with high net worth. An Asset Depletion loan solution divides your total cash balance by a lender-chosen time period, so the asset can be counted as income. For example, a $200,000 savings balance may be converted into $833.33 of extra monthly qualifying income with a typical 20-year asset depletion loan term.
Clients investing in multiple rental units. Non-QM loans may be applicable for clients who are building a portfolio of investment properties but already own 10 other mortgaged properties (the limit for most conventional lenders). If the rental income on the new property exceeds that property’s monthly loan payment, you won’t need to verify any other income to qualify.
Clients who are foreign nationals. A foreign national is defined as a citizen of another country who lives in the U.S. for brief periods of time. Non-QM loans for foreign nationals may not require proof of U.S. income, credit or a Social Security Number.
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