Non-QM Loans
Financing Solutions Beyond Traditional Guidelines
Non-QM loans provide flexibility for borrowers who may not fit traditional mortgage criteria, offering alternative options for those with unique financial situations or non-standard income sources.
Non-QM Requirements
1.
Alternative Income Verification
Non-QM loans require alternative methods for income verification, such as bank statements,
asset statements, or self-employment records, rather than traditional W-2s or tax returns.
2.
Credit Score
Borrowers generally need a minimum credit score, but depending on the lender, scores as low as 500-600 may be accepted.
3.
Documentation
Evidence of substantial financial assets, such as savings or investments, which can be used to demonstrate their ability to repay the loan may be required.
4.
Eligibility
Non-QM loans are generally provided to borrowers who do not meet the stringent income, debt-to-income ratio, or credit score requirements of QM loans.
Non-QM Loan Benefits
Flexible Qualification Criteria
Non-QM loans offer more lenient qualification requirements, accommodating borrowers with unique financial situations, such as self-employed individuals, those
with irregular income, or those
with lower credit scores.
Alternative Income Verification
Borrowers can use alternative methods to prove their income, such as bank statements or asset documentation. This flexibility makes it easier for borrowers with non-traditional income sources
to secure financing.
Customized Loan Options
Non-QM loans come in a variety
of types, such as DSCR loans and Bank Statement loans, allowing borrowers to choose financing solutions that best fit their individual needs and financial goals.
