Non-QM Mortgages

At Secure Mortgage Company, we want to make sure we have loan programs for every type of borrower.

A non -QM loan is basically a loan that does not fall into the typical Conventional or FHA Category.

They are geared towards borrowers do not fit the box of a traditional bank loan.

Non -QM loans can be used for Primary, 2nd or even Investment properties.  

  1. Ability-to-Repay Rule Exemption: Non-QM loans may be offered to borrowers who do not meet the strict debt-to-income (DTI) ratio requirements of qualified mortgages.

  2. Alternative Documentation: Non-QM loans often allow for alternative documentation of income or assets, such as bank statements, asset depletion, or stated income (sometimes referred to as “bank statement loans” or “stated income loans”). This flexibility can benefit self-employed individuals, freelancers, or borrowers with irregular income streams who may not qualify for a traditional mortgage based on standard income documentation.

  3. Unique Borrower Profiles: Non-QM loans may be suitable for borrowers who fall outside the typical criteria for qualified mortgages, such as those with credit issues, high debt-to-income ratios, non-traditional income sources, or complex financial situations. These borrowers may still be able to obtain financing through non-QM loan products tailored to their specific needs.

  4. Variety of Loan Types: Non-QM loans encompass a wide range of mortgage products, including interest-only loans, asset-based loans, jumbo loans, and loans for investment properties or foreign nationals. These loan types may not meet the strict requirements for qualified mortgages but can provide options for borrowers with unique financial circumstances.

  5. Less Regulation: Non-QM loans are not subject to the same regulatory scrutiny as qualified mortgages, which means lenders have more flexibility in structuring loan products and underwriting criteria. However, this lack of regulation also means borrowers need to exercise caution and carefully evaluate the terms and risks associated with non-QM loans.

Overall, non-QM loans serve as an alternative financing option for borrowers who do not qualify for traditional qualified mortgages due to various reasons. 

Please contact us and we can give you additional details!