Non-Qualified Mortgage

Non-Qualified Mortgage (Non-QM)

If your financial situation doesn't fit the traditional mortgage criteria, a Non-Qualified Mortgage (Non-QM) might be a viable option. These loans offer flexibility for individuals whose income or credit history falls outside the standard guidelines.

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Myths And Facts

Difficult To Close
Non-QM Loans Are Unregulated
Sub-Prime Borrowers

Difficult To Close

Myth

Non-QM loans are difficult to close and a waste of time.

Fact

Non-QM loans can be as easy to close as Agency loans. It all depends on the lender.

Non-QM Loans Are Unregulated

Myth

Non-QM loans are unregulated.

Fact

It’s a regulatory requirement that every non-QM borrower provide documentary proof of their ability to repay.

Sub-Prime Borrowers

Myth

Today’s non-QM borrower looks like the sub-prime borrower before the housing crisis.

Fact

The average FICO for our non-QM borrowers is 742 versus a score in the 500s back before 2008. With an average down-payment of over 20%, borrowers now have “skin in the game”.

Medical Payments Coverage

Risk Factor

A guest at your annual Fourth of July barbecue trips on the steps between your deck and the lawn fracturing his wrist when he falls against a stone retaining wall.

Solution

Medical payments coverage can cover the medical costs if a visitor is hurt on your property, regardless of liability.

Property Coverage

Risk Factor

You’ve lit several candles — which unintentionally start a small fire in your apartment.

Solution

Property coverage under your renters policy may help if personal property like a sofa and a bookcase are damaged by fire.

What Is a Non-Qualified Mortgage?

A Non-Qualified Mortgage (Non-QM) does not adhere to the consumer protection requirements established by the Dodd-Frank Act. Unlike Qualified Mortgages (QM), which have strict criteria, Non-QM loans offer more flexibility for borrowers with unique financial situations. For instance, if your debt-to-income ratio exceeds 43% or you have irregular income that doesn't meet traditional verification standards, a Non-QM loan may be an appropriate solution.

Who Benefits from Non-QM Loans?

Non-QM loans can be beneficial for various types of borrowers who might not qualify for a conventional mortgage:

  • Self-Employed Borrowers: Traditional mortgage programs often require extensive documentation of self-employed income. Non-QM lenders might offer bank statement loans, allowing you to qualify based on your bank statements instead of tax returns.

  • High Net-Worth Individuals: If you have substantial assets but less regular income, an asset depletion loan might be available. This approach allows you to qualify by dividing your asset balance by a predetermined period to calculate qualifying income.

  • Real Estate Investors: For investors owning more than ten financed properties, or those seeking debt-service coverage ratio loans, Non-QM options may provide a suitable alternative to conventional lending limits.

  • Borrowers with Recent Bad Credit: Non-QM loans can sometimes be accessed shortly after major credit events like bankruptcy or foreclosure, whereas traditional lenders often require a waiting period of two to seven years.

  • Foreign Nationals: If you're a foreign national working or vacationing in the U.S., Non-QM loans may not require U.S. income proof, credit history, or a Social Security number.

  • Interest-Only Payment Options: Non-QM loans may offer interest-only payment options, which can be advantageous for individuals with fluctuating income, providing lower payments during less financially stable periods.

Should You Consider a Non-QM Loan?

A Non-QM loan can be a practical choice if you have the financial capacity to make regular payments but don't fit the traditional mortgage criteria. For instance, if you own a business with variable income and have a strong credit score but struggle to meet conventional income verification requirements, a Non-QM loan may be the solution.

By opting for a Non-QM loan, you can access financing tailored to your unique financial circumstances, bridging the gap until you can meet conventional mortgage standards or refinance into a traditional loan.

If you think a Non-QM loan might be right for you, our team is here to help. Contact us to explore your options and find the best solution for your financial needs.

HUNTER LENDING FLORIDA

We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.

PHONE

(239) 935-8559

E-MAIL

ryan@hunterlending.com

ADDRESS

365 5th Ave South, Naples, FL,
United States, 34102

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The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.
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