Non-QM Mortgage Loan FAQs

We will be covering Non-QM mortgage loan FAQs. The team at Non-QM Mortgage Lenders gets many daily inquiries on non-QM loans. The Non-QM and alternative mortgage loan market is a huge sector of the overall lending market. We will cover the Non-QM Mortgage loan FAQs our team at Non-QM Mortgage Lenders get daily. Non-QM mortgages are only for borrowers with bad credit. Many borrowers with excellent credit need to opt to go with Non-QM loans versus traditional loans. We will discuss and go over case scenarios where Non-QM mortgages may be a better option for a homebuyer purchasing a home or a homeowner needing to refinance.

What Is a Non-QM Mortgage Loan?

A Non-QM mortgage loan is a non-Qualified mortgage loan which means it does not meet the qualified mortgage loan guidelines. Qualified mortgage loans are traditional government and conventional loans that have agency lending guidelines borrowers need to meet. Examples of qualified mortgages or QM mortgages is the borrower needs to have qualified income that is verifiable and meets the agency guidelines. HUD, VA, USDA, Fannie Mae, and Freddie Mac are the QM-mortgage agencies that set the standards of the agency’s loan program.

HUD is the federal agency that sets the agency mortgage guidelines on all FHA loans. HUD is not a lender and has nothing to do with originating and funding FHA loans. The role of the U.S. Housing and Urban Development is to promote homeownership by partially insuring and guaranteeing FHA loans originated and funded by private lenders such as banks and mortgage lenders.