Non-QM Mortgage Guide

In this non-QM Mortgage Guide, we will cover and discuss everything about non-QM loans. The non-QM Mortgage Guide will go into detail about the types of non-QM loans available for owner-occupant homes, second homes, and investment properties. Non-QM Mortgage Lenders has created and launched the Non-QM Mortgage Guide to the countless volume of call from our viewers and clients with many similar frequently asked questions on non-QM mortgage loans.

Non-QM Mortgage Lenders dba as NEXA Mortgage, LLC is the largest and fastest growing mortgage broker in the nation. Licensed in 48 states with a network of over 190 wholesale mortgage lending partners, Non-QM Mortgage Lenders has every single non-QM and alternative mortgage loan program available in the marketplace.

Best Non-QM Mortgage Lenders Licensed In 48 States

Non-QM Mortgage Lenders is licensed in 48 states including Washington DC, Puerto Rico, and the U.S. Virgin Islands (Not yet licensed in NY and MA). The team at Non-QM Mortgage Lenders has created this non-QM mortgage guide to educate our viewers and clients on the various non-QM mortgage loan options available at Non-QM Mortgage Lenders

Non-QM Mortgage Guide on Non-Prime Loan Options

Non-QM Mortgage Lenders has a national reputation of being able to do mortgage loans other mortgage lenders can’t do. Over 80% of our clients are homebuyers who could not qualify at other mortgage companies either due to lender overlays or because the mortgage lender did not have the non-QM mortgage option best suited for the borrower.

One-Stop Mortgage Shop With Accessible Non-QM Mortgage Programs

Non-QM Mortgage Lenders has a national reputation of being able to do mortgage loans other lenders can’t do. We offer government and conventional mortgage loans with no overlays. What makes Non-QM Mortgage Lenders different than the competition is we are the largest non-QM mortgage broker in the country with a lending network of 190 wholesale mortgage lenders.

Due to our partnership with over 190 wholesale mortgage investors, the team at Non-QM Mortgage Lenders can offer hundreds of different types of non-QM and non-prime mortgage loan options for homebuyers and real estate investors. In the following sections of this non-QM Mortgage Guide, you will learn all aspects of non-QM loans, its eligibility requirements, and the best mortgage option for you.

Non-QM Mortgage Guide on Qualified Versus Non-Qualified Mortgages

Are you shopping for a mortgage? If so, you’ve probably come across two types of mortgages: qualified and non-qualified. Qualified mortgages were created in 2008. Qualified Mortgages, commonly referred to as QM loans, are regulated and protected by the Consumer Financial Protection Bureau (CFPB).

The Role of The Consumer Financial Protection Bureau

The CFPB’s role and purpose is to protect consumers from predatory lending. Furthermore, the Consumer Financial Protection Bureau (CFPB) creates, implements, and enforces consumer protection by making sure that mortgage lenders follow the ability to repay rule and high-cost regulations.

Are Non-QM Loans Safe?

By implementing guidelines and regulators for lenders to have the borrower’s best interest in mind with major focus on the borrowers repay their loans and net tangible benefit. If the borrower does not meet government-backed mortgage guidelines and/or Fannie Mae and Freddie Mac guidelines, the borrower might qualify for QM mortgages.

Non-QM Loans Compared To QM Mortgages

Non-Qualified mortgages are loan options for borrowers who do not meet Qualified mortgage guidelines! Non-QM mortgages or non-QM loans, became a lifeline to many individuals who didn’t meet the stringent requirements for QM loans. So, what are non-qualified mortgages? What are the standard requirements for these mortgages? And what are the types of Non-QM mortgages? In this non-QM mortgage guide, we will cover all these factors. Interesting? Keep reading…..

What Are Non-QM Loans?

A Non-Qualified mortgage is commonly known as a loan product that doesn’t meet or conform to the Consumer Financial Protection Bureau requirements. Mortgage borrowers who can’t meet the guidelines required to be eligible for a qualified mortgage, or precisely people with unreliable income sources such as self-employed individuals or independent contractors, and many more.

A qualified monthly income is the main requirement that disqualifies many people from obtaining a suitable mortgage. Self-employed people would be completely locked out. But as for Non-QM, you don’t need to have such an income; better yet, your payment doesn’t need to be as consistent. Here are some of the main requirements for obtaining a Non-QM mortgage:

A decent credit score
A debt-to-income ratio of about 50%, depending on the lender
One has to prove that they have been self-employed for at least two years
12-24 months of bank statements, either personal or for your business
A business license or any other document that proves the existence of your work

Types of Non-Qualified mortgages

In this section in non-QM Mortgage Guide, we will go over the various types of non-QM and non-prime mortgage loan options borrowers have. There are many instances where non-QM loans is the best mortgage option for the individual homebuyer purchasing a home or homeowner needing to refinance their home loan.

Several Non-QM loans depend on your specific situation. In the next few paragraphs of this non-QM mortgage guide, we will focus on some of the most popular non-QM mortgage loan programs available in the marketplace.

Asset Qualifier Non-QM Mortgage Loans

Asset qualifier home loan is a loan product that enables you to acquire a mortgage against liquid assets instead of your income. We refer to your checking and savings, investments, or retirement accounts regarding liquid assets. Also, suppose you got lots of assets that don’t generate as much income. In that case, you can use them to acquire an asset qualifier home loan, with the assets as security.

Bank Statement Loans

Bank statement loans allow self-employed individuals access to a mortgage loan by providing the lender with bank statements rather than W-2s, tax returns, or pay stubs. This mortgage is ideal for self-employed borrowers who find it difficult to prove their income.

Non-QM Jumbo Mortgages

Jumbo loans – this is a loan whose amount exceeds the amount limits set by Fannie Mae and Freddie Mac. In some markets, the current loan servicing limit is 647,200 USD for a single-family home and is 970,800 USD. Any loan that exceeds a jumbo loan is ideal for purchasing or refinancing higher-priced properties.

Foreign National Mortgage Loans

Foreign national loans are mortgages for foreigners looking to buy properties in the United States. The applicants need to submit a credit report from their home country or may also use current assets and incomes to prove their creditworthiness to the lenders.

1099 Income Only Mortgage Loans

1099 income loan – this is a loan meant for 1099 earners who aren’t able to qualify for a total doc mortgage. Borrowers may benefit include independent contractors, freelancers, and others who file W-9s. Applicants will only need to provide their 1099 earnings statements to verify their income and creditworthiness, thereby qualifying for the loan.

ITIN Mortgage Loans

ITIN mortgages – an ITIN mortgage – which stands for Individual Tax Identification Number – is a loan program designed for borrowers who aren’t eligible for social security numbers. It is ideal for immigrants looking to buy property in the US. The requirements for this loan vary by lender.

Investor-Cash Flow Mortgage Loans

Investor cash flow mortgage – are you a real estate investor looking to expand your investment portfolio? This is the ideal loan for you! The borrower needs to provide the cash flow from the existing property to secure it.

Borrowers Who Benefit From Non-QM Mortgages

A non-qualified mortgage has the most flexible terms, requires less documentation, and has lenient credit requirements. All these make these mortgages the best option for the following groups of people:

Self-employed individuals
Individuals with less-than-stellar credit
Foreign nationals
Real estate investors
Small business owners
Retirees
Independent contractors
Individuals with a high debt-to-income ratio

Mortgage Rates on Non-QM Loans

As you probably know, non-qualified mortgages are easy to secure, as they don’t need to follow strict government guidelines. However, this makes them a bit riskier, which means they feature higher interest rates than qualified loans. The thing is, QM loans are insured by the Federal government, which means that even if the borrower defaults, the lender is protected.

As for Non-QM loans, if the borrower defaults, the lender will have to accept the loss, as these loans aren’t insured. This is why you will find that the interest rates on Non-QM loans are higher than that of QM loans by about 1.25%, and that’s for the same amount of money. This way, the Non-QM lender can hedge some risks if the borrower stops making payments.

Are Non-QM Mortgages a Good Idea For Borrowers?

Yes, non-QM mortgages are ideal, but it’s only for the specific borrowers we mentioned above and only in certain situations. Whereas individuals with consistent monthly incomes are better off with qualified mortgages, we have to acknowledge that there are so many people who don’t qualify for these loans. So, non-QM mortgages will always be their go-to loans if they are to invest in properties. So basically, if you are a borrower or an investor who doesn’t mind the higher rates and wants a mortgage that would be processed fast, then a Non-QM mortgage will be the most ideal for you.

Where Can You Get Non-QM loans?

Online lenders like NON-QM Mortgage Lenders often offer these mortgages. With us as your mortgage broker, you are assured of a seamless application, loan approval, and funding. You can visit us today, and you can rest assured that we will do our best to work something out for you.