Many borrowers have income or financial circumstances that do not fit traditional mortgage qualification guidelines. Non-QM loans provide alternative ways for qualified borrowers to document income, assets or property cash flow. These programs may be useful for self-employed borrowers, real estate investors and others with nontraditional financial profiles.
A Non-QM (Non-Qualified Mortgage) loan is a mortgage that does not meet all of the requirements used to classify a loan as a Qualified Mortgage under federal rules. Non-QM loans may use alternative methods of evaluating a borrower's financial qualifications.
Depending on the program, qualification may consider bank statements, assets, rental property cash flow or other documentation instead of relying solely on traditional income documentation such as W-2s and tax returns.
Loan requirements vary by program, property type and borrower qualifications.
Non-QM loans may be an option for qualified borrowers whose financial circumstances do not fit traditional mortgage guidelines, including:
Non-QM loans may provide additional financing options for borrowers whose financial circumstances do not fit traditional mortgage guidelines. Depending on the loan program and borrower qualifications, potential benefits may include:
Loan amounts, down payment requirements, credit guidelines, documentation requirements and available loan terms vary by program and borrower qualifications.
Documentation requirements vary depending on the Non-QM program and the borrower's financial circumstances. Depending on the program, borrowers may qualify using traditional income documentation or alternative documentation such as personal or business bank statements, asset statements or rental property income.
Credit history, assets, property type, loan-to-value and other factors may also be considered. Because Non-QM programs vary, the documentation needed should be reviewed for the specific loan program being considered.
Non-QM financing includes a variety of loan programs designed for borrowers and real estate investors whose circumstances may not fit traditional mortgage guidelines. Depending on program availability and borrower qualifications, options may include:
Program guidelines, documentation requirements and available loan terms vary.
Redwood Mortgage Services helps qualified borrowers in Annapolis, Anne Arundel County and throughout Maryland explore Non-QM financing when traditional mortgage guidelines may not fit their financial circumstances.
Whether you're self-employed, have substantial assets or are financing an investment property, we can help you review available loan programs and understand the documentation and qualification requirements that may apply.
Redwood Mortgage Services also serves borrowers in Delaware, Virginia, Washington, DC, North Carolina and Florida.