Non-Qualified Mortgages (Non QM Loans)
Some borrowers do not meet the credit requirements or income documentation necessary for a conventional Qualified Mortgage (QM) loan. For those borrowers, we offer a large variety of Non-Qualified Mortgage (Non QM) loans.
A Non QM differs from a standard QM and is designed to provide flexibility in lending standards to accommodate borrowers who do not fit traditional lending criteria. Non QM home loans are for individuals who may have unique financial circumstances, allowing them to obtain mortgage financing through alternative means of income verification and credit evaluation. Unlike Qualified Mortgages, which adhere to strict federal guidelines, Non QM loans are not bound by the same criteria set by the Consumer Financial Protection Bureau (CFPB). This makes them an attractive option for those who may have credit issues like a recent bankruptcy or foreclosure or issues with documenting their income.
Types of Non QM Loans
Alpine Mortgage is a Non QM mortgage company with a variety of Non QM loan programs to cater to our borrower’s needs. Here are the main types of Non QM Loans we offer:
Alternative Documentation Options
Our Non QM loan programs offer different income verification options such as:
- Bank Statement Loans. For self employed borrowers that can verify their income with deposits on their bank statements.
- Profit & Loss Loans. Another program for self employed borrowers where qualification is based on a profit & loss statement for the business. No bank statements or tax returns are required.
- 1099 Income Loans. For independent contractors that can qualify with their 1099 form.
- Asset Depletion Loans. Allows borrowers to use their substantial assets to qualify for a mortgage instead of employment income.
- Debt Service Coverage Ratio Loans (DSCR Loans). For real estate investors that can qualify for a loan based on the cash flow of a rental property.
Borrowers with Credit Issues
Our Non QM loan programs are also designed for borrowers with different credit issues such as:
- Low Credit Scores. Minimum credit score as low as 500.
- Bankruptcy. No waiting period after a Chapter 7 or Chapter 13 bankruptcy.
- Previous Foreclosure. No waiting period after a foreclosure.
Who is a Non QM Loan for?
Non QM loans are ideal for a variety of borrowers who find that traditional mortgage products do not meet their needs. This includes:
- Self-Employed Individuals. Those who run their own businesses or work freelance may have difficulty presenting traditional proof of income documents. Non QMs allow them to use alternative methods to verify their income.
- Real Estate Investors. Investors often turn to Non QM loans due to their ability to finance properties that might not qualify under standard lending guidelines. This can include fix-and-flip projects or rental properties.
- Borrowers with a Non-Traditional Credit History. Individuals who do not have a standard credit history or who have had past credit issues may find more flexible borrowing options with Non QM loans.
- High Net Worth Individuals. Those with significant assets but irregular income streams can benefit from asset-based lending options available within Non QM loans.
Non-Qualified Mortgages offer flexible, accessible loan options for those who might not fit the mold of traditional borrowing. Whether dealing with credit challenges, irregular income, or unique investment needs, Non QM loans provide a pathway to homeownership where traditional mortgages might not. For anyone considering a Non QM, it's essential to consult with a Non QM mortgage lender or a mortgage advisor to understand fully the benefits and potential risks associated with these loan types. Alpine Mortgage offers Non QM loans in the following states: California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Texas.
If you are interested in learning more about our Non QM loan programs, call us today at (800) 876-5626 to speak with one of our Non QM loan specialists or click here to have one of our Non QM loan specialists contact you.
If you are interested in applying for a Non QM loan, you can apply online now.
Non QM Tools & Advice
