Non-QM Loans

Perfect for Business Owners, Real Estate Investors, Self Employed and borrowers with non-traditional income.  A Non-QM loan, or a non-qualified mortgage, is a type of mortgage loan that allows you to qualify based on alternative methods, instead of the traditional income verification required for most loans. Common examples include Bank Statements, DSCR, Qualifier and 1099 Only loans. Because of the more flexible qualification requirements, Non-QM loans open up real estate investment opportunities to a broader group of individuals.  For many potential homeowners and real estate investors, Non-QM loans are the only way to make investment opportunities plausible. 

Bank Statements

The Bank Statement loan is an excellent solution for those who are self-employed, investors, or those that need an alternative way to show cash flow. Unlike other mortgage products, you may qualify for this loan by showing your deposits in bank accounts. Only bank statements are required for this type of Non-QM loan. Borrowers can qualify with as little as two months of bank statements however the most popular program is the 12-month bank statement loan. This loan is often a good solution for self-employed borrowers, business owners, realtors, consultants, and entrepreneurs.

Investor Cash Flow - Debt Service Coverage Ratio (DSCR) 

The Investor Cash Flow or DSCR loan is an excellent solution for real estate investors. You may use rental income generated from the subject property to qualify. The Debt Service Coverage Ratio is a ratio of a property’s annual net operating income and its annual mortgage debt, including principal and interest. Lenders use DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage there will be at a specific loan amount. Many lenders will require a .75 to 1.25 DSCR to qualify for a DSCR mortgage loan. Please note that interest rates are better on DSCR ratios of 1 or above and that a DSCR ratio of less than 1 requires 12 months of reserves.

Asset Qualifier 

The Asset Qualifier loan is an excellent solution for those with substantial assets, but without consistent documentable income. Qualification is determined solely based on your liquid assets and assets you can liquidate without restriction. Asset-based loans allow you to leverage assets you already have, including checking and savings accounts, investment accounts, or money market accounts, to secure a loan. 

1099 Only Program

The 1099 Only loan is an excellent solution for those that receive compensation in the form of commission or independent contractor basis and receive an IRS form 1099 at year-end. Qualification is determined solely on your 1099 income forms. 

Foreign Nationals

The Foreign Nationals loan program is designed for borrowers who live overseas and would like to purchase a property in the US.  No US credit score or history is required and the borrower is using liquid assets or subject property rental income for qualification.

Profit & Loss (P&L) and Verification of Employment (VOE) loan programs are also available.  Contact our Loan Officer today to get more details.

ALL Non-QM loans are priced directly with lenders and investors.  Contact us for latest details and rates.