Non-Qualified Mortgage Loans

A Non-Qualified Mortgage mortgage is any home loan that doesn’t comply with the Consumer Financial Protection Bureau's (CFPB) existing rules on Qualified Mortgage. 


Non-QM Asset

1) The borrower is qualified based on verified liquid assets;

2) Assets must be documented sufficiently to cover the loan amount requested with an additional 60 months reserves to cover all revolving, installment and miscellaneous debts (e.g. child support,
alimony, etc.);

3) Assets can be cash in the bank, stocks, bonds, IRA’s, 401k’s, mutual funds or any retirement accounts;

4) 12 months of consecutive statements are required for asset verification;

5) Tax returns are not needed in Underwriting.


Non-QM Investor

1) Designed for experienced Real Estate Investor who is purchasing or refinancing investment properties to be held for business purposes;

2) Borrower is qualified based upon the cash flow of the subject property, specifically the debt coverage ratio (1.0 for purchase transactions and 1.25 for refinance);

3) Income is neither stated nor verified, tax returns not required.


Non-QM Jumbo

1) Designed for high credit quality borrowers;

2) Maximum DTI of 50%;

3) Maximum Cash Out of $500,000+;

4) Foreign nationals are eligible for financing under this program with additional overlays.


Non-QM Agency

1) Designed for high credit quality borrowers who have loan parameters that fall just outside Fannie Mae and Freddie Mac guidelines;

2) Loan amount cannot exceed conforming or high balance loan limits;

3) 43% DTI ratio, maximum of 50% with compensating factors;


Non-QM Income

1) Designed for self-employed borrowers with a minimum of two years self-employment history;

2) Borrower’s qualifying income is calculated by 12 months most recent bank statements in place of tax returns.