Non QM Mortgage Loans
Non-QM Mortgage Benefits
Non-QM (Non-Qualified Mortgage) loans are a flexible financing option designed for borrowers who don't meet the standard requirements of conventional loans. These loans cater to individuals with unique income situations, such as self-employed individuals, real estate investors, or those with irregular income streams. Non-QM loans often allow for alternative documentation methods, like bank statements or asset-based qualifications, instead of traditional income verification. They provide an opportunity for creditworthy borrowers who may have high debt-to-income ratios, recent credit events, or other factors that disqualify them from conventional loans, to still secure mortgage financing. Non-QM loans come with various term options and may carry higher interest rates and larger down payments to offset the increased lending risk.
Non-QM Mortgage Benefits
Greater underwriting flexibility
No personal income calculations are required
No job history is required (in some cases)
As little as 10% 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)
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Conventional Mortgages
Conventional mortgages are home loans not insured by the government, typically requiring a higher credit score and a larger down payment, but offering competitive interest rates and flexible terms for qualified borrowers.
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FHA Mortgages
FHA mortgages are government-backed loans insured by the Federal Housing Administration, designed to help low-to-moderate income borrowers with lower credit scores and smaller down payments secure home financing.
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VA Mortgage
VA mortgages are home loans guaranteed by the U.S. Department of Veterans Affairs, offering eligible veterans and active-duty service members benefits such as no down payment, no private mortgage insurance, and competitive interest rates.
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USDA Mortgage
USDA mortgages are zero-down-payment loans for eligible rural and suburban homebuyers, backed by the U.S. Department of Agriculture, with competitive interest rates and flexible credit requirements.
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Non-QM Mortgage
Non-QM (Non-Qualified Mortgage) loans, including the Debt-Service Ratio (DSR) program and Bank Statement program, provide flexible financing options for self-employed borrowers and those with non-traditional income, focusing on cash flow and alternative documentation rather than traditional income verification.
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Jumbo Mortgage
Jumbo mortgages are loans exceeding the conforming loan limits set by the Federal Housing Finance Agency, designed for financing luxury properties and high-value homes, typically requiring higher credit scores, larger down payments, and offering competitive rates for financially secure borrowers.
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