Non-QM Loan: For Higher-Risk Buyers
Do you want to buy a home in California but you don’t fit the mold? A non-qualified mortgage (non-QM) is designed for non-typical borrowers—for example, those who are self-employed, have blemished or bad credit—even bankruptcy, or those whose income varies from month to month.
The Benefits of a Non-QM Loan
The Opportunity to Buy
If you think you can’t qualify for a home loan, think again. Non-qualified mortgages open the door.
Recent Bad Credit OK
Did you know you can qualify for a non-QM loan just one day after completing a bankruptcy or foreclosure?
Lots of Options
Get access to non-traditional loan options designed to help even the most challenging buyers purchase a home.
Flexible Income Documentation
You can show proof of income in a variety of ways, including bank statements, for example.
Because there are so many options, the requirements will vary depending on the loan program. It’s important to note that although non-QM loans are designed to be more lenient, lenders are required to make a good-faith effort to show that you have the ability to repay a loan.
Frequently Asked Questions
WHAT ARE NON-QM LOANS?
A non-QM loan, or non-qualified mortgage, is one where alternative methods are used to verify income. For example, you can provide bank statements to a lender or use your assets to show that you have the ability to repay a loan.
WHAT IS A QUALIFIED MORTGAGE?
A qualified mortgage is one that meets the standards outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act (regulation that took effect in 2010 following the financial crisis of 2007-2010).
Qualified mortgages do not permit risky loan features, such as interest-only loans, balloon payments, and negative amortization.
WHAT ARE THE BENEFITS OF NON-QM LOANS?
The biggest benefit is that non-traditional borrowers have an opportunity to purchase a home. Borrowers can also show proof of income in different ways, such as by providing bank statements. And you can even qualify for a non-QM loan just one day after completing a bankruptcy or foreclosure.
WHO MIGHT QUALIFY FOR A NON-QM LOAN?
They’re designed for the following types of buyers:
- Variable income
- Assets, but no income
- Bad credit
Tools & Knowledge
Estimate your monthly mortgage payments to find out what selling price best fits your budget.
HOW IT WORKS
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Your First Step Starts Here
Whether you’re a first-time homebuyer, are interested in refinancing, or are over 62 and looking to do a reverse mortgage, we’re a Pasadena mortgage broker that can help you reach your goal.