Non-QM Loans
Non-QM loans are mortgages that don’t meet the standard “qualified mortgage” rules, making them ideal for borrowers with irregular income, high debt, or credit challenges. They allow for flexible documentation, such as bank statements or asset verification, instead of traditional W-2s or tax returns. While rates may be slightly higher due to increased lender risk, Non-QM loans help self-employed buyers, investors, and others with unique financial situations qualify for a mortgage when traditional loans aren’t an option.
What are Non-QM Loans?
Non-QM Loans (Non-Qualified Mortgage Loans) are home loans that don’t meet standard “qualified mortgage” rules set by the Consumer Financial Protection Bureau (CFPB).
Key Points:
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Flexible qualification: Borrowers with irregular income, high debt, or credit challenges can qualify.
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Alternative documentation: Income can be verified with bank statements, asset statements, or other proof, not just W-2s/tax returns.
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Higher risk, higher rates: Because they don’t follow QM rules, interest rates may be slightly higher.
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Used for: Self-employed buyers, investment properties, jumbo loans, or borrowers with unique financial situations.
Non-QM Loan FAQ's
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