Non-QM Mortgage Loans

What is a Non-QM Loan?

A Non-QM loan is a loan that does not meet the standards set by the Ability to Repay/Qualified Mortgage (ATR/QM) rule as defined by the Consumer Financial Protection Bureau (CFPB).

A Non-QM loan may be the best option for you depending on your unique circumstances.

What is a Qualified Mortgage?

A loan must meet several standards to be considered a qualified mortgage under the ATR/QM rule. First, it must avoid risky loan features, such as negative amortization, a term longer than 30 years, a balloon or interest-only payments, or fees that typically exceed 3% of the full loan amount. In general, avoiding these terms or features is thought to make a loan safer and more stable for borrowers.

Is a Non-QM Mortgage Right for You?

Non-QM loans aren't right for everyone, but sometimes they are the best fit to help you achieve your financing goals. These loans can be misunderstood- while they may ignore some of the traditional underwriting requirements they still require a lot of documentation. Most options allow for higher Debt-to-Income (DTI) ratios and/or alternative income documentation.

Types of Non-QM Loans

  • Bank Statement Loans
  • Investor Cash Flow (DSCR)
  • 40-Year Fixed Options
  • Interest Only Options
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