Non QM Loans

Non QM Loans

A Non-QM loan, or a non-qualified mortgage, is a type of mortgage loan that allows you to qualify based on alternative methods, instead of the traditional income verification required for most loans. 

Common examples include bank statements or using your assets as collateral. Because of the more flexible qualification requirements, Non-QM loans open up real estate investment opportunities to a broader group of individuals.

Non-QM Mortgage Benefits
  • Greater underwriting flexibility
  • No personal income calculations are required
  • No job history is required (in some cases)
  • As little as 5% down required
  • No reserves required (in some cases)
  • Credit scores as low as 620 allowed (580 w/ compensating factors)
  • Low debt-service-coverage ratio (DSCR) on investment properties
  • Counting rental income (including Airbnb & VRBO)
Non-QM mortgages are typically recommended for:
  1. Self-employed individuals
  2. Real estate investors
  3. Retirees interested in purchasing a second home that will not be their primary residence
  4. Small to midsize business owners
  5. Borrowers looking for interest-only payments or more flexible DSCR requirements
  6. “Subprime” or “Non-Prime” borrowers who just barely miss the requirements for a QM loan and don’t want to postpone
  7. Those who have had a recent credit event (bankruptcy, short sale, or foreclosure)

Non QM Products

Bank Statement Loans
Only a bank statement is required for this type of Non-QM loan. Borrowers can qualify with as little as a single month’s bank statement. This loan is often a good solution for self-employed borrowers, business owners, realtors, consultants, and entrepreneurs.

Jumbo Loans with 5% Down
While traditional jumbo loans still often require 20% down, we offer near-miss jumbo loans with as little as 5% down, up to a 55% debt-to-income ratio, and credit scores as low as 660. Jumbo loans with 5% down are often the ideal solution for first-time buyers who might still have large student loans and other types of “good credit debt”.

No Income Investment Loans
Private loans often have high rates and take a while to get approved for, which is not ideal for most real estate investors. Alternatively, both new and experienced real estate investors can benefit from the expanded criteria offered by no-income investment loans which allow you to build your real estate portfolio with fewer setbacks.

Asset-Based Loans
Asset-based loans allow you to leverage assets you already have, including checking and savings accounts, investment accounts, or money market accounts, to secure a loan. This type of Non-QM mortgage is ideal for individuals with substantial liquid assets available. Although asset-based loans are typically associated with high interest rates, we have access to wholesale rates and favorable borrowing terms.

Foreign National Loans (ITIN)
If you do not have a valid Social Security number, U.S. FICO score, or Individual Tax Identification Number (ITIN) you can still qualify for this type of Non-QM loan. To qualify, you will need to provide a VISA or VISA waiver as well as three active and open trade lines with a two-year history.

Interest-Only Home Loans
We offer interest-only home loans on 40-year fixed loans, 30-year fixed loans, 7/1 arms, and 5/1 arms. During the first 10 years of the loan, you will only pay the interest. This provides significant savings over the life of the loan. However, it’s important to keep in mind that you will not be paying down the principal balance.

Recent Credit Event Loans
Recent credit events can make it challenging to secure a loan because many lenders view them as a red flag. However, we offer loan programs for borrowers with recent credit events including foreclosure, short sale, and bankruptcy. While we do offer options for as little as one day out from the credit event, loan terms typically improve the longer it has been, even in just a year or two.

Commercial Rental Property Loans
We offer a variety of loans specifically tailored to the needs of real estate investors who want to expand their portfolio to include single-family homes, 2- to 4-unit properties, condos, town homes, multi-family 5- to 20-unit properties, and ground-up-construction. From fix-and-flip investors to buy-and-hold investors, our loans are designed to make the process easier.
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