What is a Non-QM Loan?
A Non-QM (Non-Qualified Mortgage) loan is a type of mortgage that isn't backed by Fannie Mae or Freddie Mac, meaning it doesn't follow the traditional underwriting guidelines. These loans cater to borrowers who might not meet standard mortgage criteria, such as specific debt-to-income ratios. Instead, approval is based on other factors like credit score or income history.

Who is eligible for a Non-QM Loan?
Non-QM loans are perfect for individuals who can't meet the strict guidelines set by Fannie Mae and Freddie Mac. This includes those with:
Poor credit scores
Income inconsistencies
Higher debt-to-income ratios
Eligibility varies by lender, but these loans are designed to help those who struggle to secure traditional mortgages.
What are the benefits of a Non-QM Loan?
- Flexible Terms: Non-QM loans often have more favorable terms compared to other non-traditional loans.
- Lower Interest Rates: Some borrowers can secure lower interest rates.
- Reduced Down Payments: Lower down payment requirements make homeownership more accessible.
- Ideal for Self-Employed: These loans are great for self-employed individuals with fluctuating incomes.
What are the requirements for obtaining a Non-QM Loan?
The requirements for Non-QM loans depend on the lender but generally include:
Income Verification: Documentation of income.
Employment History: Proof of stable employment.
Credit Score: A credit check to assess risk.
Down Payment: Typically, a significant down payment, often up to 20% of the home’s purchase price.
Non-QM loans usually have higher interest rates and fees due to the increased risk for lenders. Borrowers should be prepared for a more thorough underwriting process.
Types of Non-QM Loans offered
Bank Statement (from 3 months to 24 month options)
Verification of Employment only (WVOE only)
Ready to Explore Your Options?
For more information or to start your application, contact MORTGAGEinc today, info@mortgage-inc.com!