What Is A Non-QM Loan?

What Is A Non-QM Loan?
A Non-Qualified mortgage loan (Non-QM) is a loan that falls outside of the QM (Qualified Mortgage) loan parameters, which provide legal protection to lenders and have stricter guidelines to help prevent against default. Non-QM loans fill a void for people with fluctuating income that may come in lump sums. Most often they used by people who are self-employed (like a small business owner, entrepreneur, contractor, nurses, etc.) and don’t tick the boxes for a traditional mortgage with requirements for their tax statements, pay stubs and W-2s. They are also used by borrowers that may certain credit issues in their past that rule out a QM loan. Non-QM loans do not have the traditional guarantees backed by those of Freddie, Fannie, FHA and VA loans. If you want to learn more about which loans are bested suited to your needs, fill out our 90 second analysis on our website and we can schedule a consult!