Real estate investors – will typically generate a lot of income at once from the homes they purchase, followed by needing substantial funding quickly.These individuals typically turn to loans based on their bank statements as opposed to their W2s. Self-employed borrowers – are often paid sporadically and have more than one stream of income, which makes it difficult for them to obtain a qualified mortgage.In fact, many of these loans will actually require higher FICO scores, along with other strong borrower attributes like steady jobs and plentiful assets. It is simply a loan that doesn’t fit into the complex rules associated with QM. First and foremost, a non-QM loan is not inherently high-risk. ![]() Usually this type of mortgage loan accommodates people who are not able to prove they are capable of making the mortgage payments. Non-QM mortgage loans can fill the niche for those who don’t necessarily fit into the “qualified-mortgage box.” A qualified mortgage follows rules set by the CFPB and Federal Government however, a Non-QM loan use alternate methods of income verification to help you get approved for a mortgage loan. Non-QM Mortgage Loans & Alternative LendingĪ Non-Qualified Mortgage ( Non-QM) is any home loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages ( QM) offered by Non-QM lenders.
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