[et_pb_section fb_built=”1″ _builder_version=”4.17.4″ _module_preset=”default” custom_padding=”3px|||||” da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
Buying a home is part of the American dream, but what if you don\u2019t qualify through traditional means? This is an issue that self-employed and other non-W2 workers often face since their proof of income and employment differs from what lenders typically require.<\/span><\/p>\n The good news is that those who don\u2019t meet the criteria for a qualified mortgage can be offered a non-qualified mortgage instead. Let\u2019s explore the non-QM loan option and see if this is the right choice in your situation.<\/span>\u00a0<\/p>\n Non-qualified loans are designed to help homebuyers who don\u2019t meet the standard requirements to qualify for a mortgage. They feature more flexible eligibility requirements on DTI, credit scores, and loan amounts.\u00a0<\/span><\/p>\n To better understand what a non-qualifying loan is, let’s review the list of requirements for a traditional mortgage:<\/span><\/p>\n Income. You must provide pay stubs, W2s, and tax returns to verify your income.<\/span><\/p>\n<\/li>\n DTI. This is the amount of your monthly income that is paid toward existing debts. Your debt to income ratio should be 43% or lower.<\/span><\/p>\n<\/li>\n Fees. Your loan fees and points can\u2019t be more than 3% of the loan amount.<\/span><\/p>\n<\/li>\n Term. The loan term must be 30 years or less.<\/span><\/p>\n<\/li>\n<\/ul>\n If you can\u2019t provide the aforementioned things, a non-qualifying mortgage is worth exploring. It should be noted that non-QM loans are not government-backed or part of Fannie Mae or Freddie Mac.<\/span><\/p>\n Non-QM loans make mortgages more accessible to a broader market. They also require less formal documentation compared to other types of loans. You don\u2019t need to submit W2s, tax returns, or employment verifications. Bank statements and a list of assets are often enough for loan approval.<\/span><\/p>\n Minimum credit scores for non-QM loans can be up to 100 points lower than qualified mortgages and feature more flexible terms, which are not available in most qualified mortgages. Even a 40-year loan term!\u00a0<\/span><\/p>\n A non-QM loan is a good option when you have a stable income that allows you to make regular, on-time mortgage payments but can\u2019t meet a qualifying mortgage requirement. This is often the case with:<\/span><\/p>\n Freelancers<\/span><\/p>\n<\/li>\n Doctors<\/span><\/p>\n<\/li>\n Consultants<\/span><\/p>\n<\/li>\n Lawyers<\/span><\/p>\n<\/li>\n Real estate agents<\/span><\/p>\n<\/li>\n Small business owners<\/span><\/p>\n<\/li>\n Retirees<\/span><\/p>\n<\/li>\n Borrowers with high assets and low income<\/span><\/p>\n<\/li>\n Borrowers with high DTI<\/span><\/p>\n<\/li>\n Borrowers with low credit scores<\/span><\/p>\n<\/li>\n<\/ul>\n There has been a misconception that Non-QM loans are bad loans and borrowers should avoid them. The truth is, similar to qualified mortgages, today\u2019s non-QM loans have their own set of guidelines. The lending process is the same apart from the loan documents needed.<\/span><\/p>\n Because of the financial risk involved in providing loans that are not backed by federal government programs, non-QM loans are less widely available. And just like any other loan, non-QM loans have their pros and cons.\u00a0<\/span><\/p>\n If you\u2019d like to learn more about non-QM loans or explore other home financing options, please contact us! Many options and means are available to help you qualify for a mortgage.\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n <\/p>\n * Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Buying a home is part of the American dream, but what if you don\u2019t qualify through traditional means? This is an issue that self-employed and other non-W2 workers often face since their proof of income and employment differs from what lenders typically require. The good news is that those who don\u2019t meet the criteria for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[14],"tags":[],"_links":{"self":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1665"}],"collection":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/comments?post=1665"}],"version-history":[{"count":2,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1665\/revisions"}],"predecessor-version":[{"id":1668,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1665\/revisions\/1668"}],"wp:attachment":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/media?parent=1665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/categories?post=1665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/tags?post=1665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is a Non-QM loan?<\/span><\/h2>\n
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Benefits of Non-QM loans<\/span><\/h2>\n
Should You Get a Non-Qualified Loan?<\/span><\/h2>\n
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Where to get Non-QM loans<\/span><\/h3>\n