Non-QM loans can provide flexible mortgage options for borrowers whose income, assets, property type, or financial situation may not fit traditional conventional loan guidelines.
At @Home Mortgage, we work with a variety of Non-QM loan programs for Michigan homebuyers, homeowners, self-employed borrowers, and real estate investors. Depending on the program, qualification may use alternative documentation or different methods of evaluating income and assets. Because Non-QM programs can vary significantly, we'll help you compare the available options and understand the documentation, down payment, reserves, and other requirements that may apply to your situation.
A Non-Qualified Mortgage, commonly called a Non-QM loan, is a mortgage that does not meet all of the requirements used to classify a loan as a Qualified Mortgage.
That doesn't necessarily mean that the borrower is less qualified. Non-QM programs may use different ways of documenting income, evaluating assets, or qualifying a property, depending on the loan program. These programs can be particularly useful for borrowers with financial situations that don't really fit neatly within traditional mortgage guidelines.
Non-QM loans may provide financing options for borrowers with a variety of income, asset, credit, property, or investment scenarios that may not fit traditional mortgage guidelines.
Non-QM Financing includes a variety of loan programs designed for different borrower and property situations. Available options may include:
Eligible self-employed borrowers may be able to use personal or business bank statements to document qualifying income rather than relying solely on traditional tax-return income.
Some Non-QM programs may provide alternative ways to evaluate income for eligible borrowers who receive 1099 income. Depending on the program, qualification may use 1099 earnings and other documentation rather than relying solely on traditional tax-return income.
Certain Non-QM programs may allow qualifying assets to be used when determining a borrower's ability to repay, depending on program requirements.
Real estate investors may have financing options that consider the property's rental income or cash flow when qualifying. Learn more about DSCR loan options.
Eligible homeowners may have access to Non-QM second mortgage or home equity line of credit (HELOC) options. These programs may provide access to home equity without refinancing an existing first mortgage.
Additional programs may be available for borrowers with unique income, credit, property, or financial circumstances. Requirements vary by program, so we'll review your situation to determine which available options may fit your financial goals.
Documentation requirements vary depending on the Non-QM loan program and how the borrower is qualifying. Some programs may use alternative documentation such as personal or business bank statements, 1099 income documentation, or qualifying assets rather than relying solely on traditional income documentation.
Real estate investors may also have programs where qualification is based primarily on the property's rental income or cash flow. Credit, assets, reserves, property type, and other requirements vary by program.
At @Home Mortgage, we'll review your situation and help identify which documentation and Non-QM financing options may be available to you.
