Non-QM Mortgages and What You Need to Know

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Sarah and Lisa work with a very wide variety of clients with different needs and unique circumstances. Their clientele includes buyers that are self-employed, real estate investors, or buyers that may have incomes or credit histories that fall outside the stringent guidelines set by standard mortgage loan programs.

Fortunately for their clients, Sarah and Lisa can suggest alternative mortgage solutions and refer their clients directly to their extensive professional network to assist them in obtaining a non-QM mortgage.

One such company that is part of their professional network is Angel Oak Mortgage Solutions.

Angel Oak offers access to a variety of mortgages including non-QM mortgages.

What is a non-QM Loan?

The short answer is that non-QM stands for “non-Qualified Mortgage” which is the opposite of the more typical “Qualified Mortgage”. Non-QM mortgages fall outside the Consumer Financial Protection Bureau’s (CFPB) requirements.

The common qualified mortgage meets the CFPB’s “ability to repay” rule which requires that lenders vet your finances by most commonly using tax returns and employment information, and then set the terms on the loan that you’re likely to be able to pay back.

Non-QM loans can create their own guidelines to prove you can afford the mortgage by using other determining factors to qualify buyers, for example, bank statements.  Another example is a non-QM qualifier may use the cash flow on a property to qualify a rental property mortgage loan.

What are examples of non-QM loans? 

Non-QM Mortgage Products

  • Bank Statement Loans. (Only a bank statement is required for this type of non-QM loan)
  • Jumbo Loans with 10% Down
  • No Income Investment Loans
  • Asset-Based Loans
  • Foreign National Loans (ITIN)
  • Interest-Only Home Loans
  • Recent Credit Event Loans
  • Commercial Rental Property Loans

For a List of the Top 5 non-QM Loan Providers, you can visit the Angel Oak Website here.

There are of course pros and cons to non-QM programs. But they are a useful tool for certain situations and should be fully explored. Sarah and Lisa would love to advise and assist you in any way possible including talking through your options and connecting you with the professionals at Angel Oaks. Contact them today.

Want to learn more about Chatel Group’s Professional Network? Check out their Concierge Page here