Non-QM Mortgage Loans

Non-QM Mortgages for the

Self-Employed Borrower & Investor

From business owners to investors & free-lancers. Get a mortgage using your real income. We are here to build relationships. Let us help you with your mortgage journey.

No W2? No Problem. Qualify with

1099 Income, Bank Deposits Or Rental Income

  • Loan Amounts up to $5 Million
  • No Tax Returns, W2s, or Pay Stubs Required to Qualify
  • Qualify Using Gross Rental Income, Personal or Business Bank Deposits
  • Interest Only Payments Available on All Loan Programs
  • 40 Year Fixed APR with 10 Year Interest Only Payment Option
  • 2-8 Unit Investment Properties are Eligible

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We offer Non-QM Mortgage Loans, including the following types of Non-QM Loans:

Bank statement loans are classified as known as “Non-QM mortgage loans”.

If you are a business owner and your CPA writes off too much of your income for your taxes but you make plenty of income through your business, we have loan options that is a non-conventional loan product. Income is proved through deposits of your bank statements, whether it is your personal or your business bank statements, we can help you with a bank statement loan.

We offer both 12 or 24 months of bank statements for income qualification purposes.
We average your deposits from income sources from your business or personal bank statements.

The minimum credit score is 580, but the LTV is going to be decreased pending on multiple factors:

1) FICO score;

2) Purchase or refinance or cash-out refinance;

3) Primary Residence, 2nd home or investment property;

4) typer of property: SFR, Condo, town-home, cabin;

5) Location (Zip Code): built-up area or Rural area.

Down payment requirements for bank statement loans start at 10% down (90 LTV) for a Primary Residence, SFR (Single Family Residence), 700+ Fico Score. Non-Owner occupied (Investment properties) start at 20% down.

1099 Income Only – Non-QM Mortgage Loans

Provide your 1099 Tax Statement. This is for self-employed/Commissioned income

Minimum Fico: 620 Fico Score for 1099 only Non-QM loans

Loan Types for Non-QM Mortgage Loans

We lend for:

Property Types

Interest Rates for Non-QM loans are higher than conventional loans. Call to get a custom quote for a Non-QM loan.

Primary residence and Second (2nd) Home Non-QM Loans do not have pre-payment penalties, as this is standard.

Investment property non-QM loans have pre-payment penalties. They range from 1 to 3 years and can go out for as long as 5 years. The longer the time period for the pre-payment penalty, the lower the rate. The pre-payment penalty can be bought out, have a lower rate by paying points at closing.

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Conclusion

Non-QM Loans have revolutionized the mortgage landscape for self-employed borrowers, investors, and individuals seeking flexible financing options. By understanding the benefits and considerations associated with these loans, you can make informed decisions about your path to homeownership or investment. Whether you’re looking to finance a primary residence, a vacation home, or multiple investment properties, Non-QM Loans offer a valuable resource for navigating the complexities of today’s real estate market.

For more information, do not hesitate to Apply Online or reach out to our team for personalized assistance.

Key Considerations for Non-QM Loans

While Non-QM Loans offer flexibility, there are several critical aspects to consider before pursuing this financing option:

  • Higher Interest Rates: Be prepared for potentially higher interest rates compared to conventional loans, as lenders account for the increased risk.
  • Pre-Payment Penalties: Some Non-QM Loans may include pre-payment penalties, especially for investment properties. Understanding these terms is crucial for future financial planning.
  • Credit Score Requirements: Although more flexible, Non-QM Loans typically require a minimum credit score of 580 or 620, depending on the loan type.
  • Down Payment Requirements: Expect to provide a higher down payment for investment properties compared to primary residences, often starting at 20%.

    • Understanding the Benefits of Non-QM Loans

    Non-QM Loans present numerous advantages, especially for those with unconventional income sources. Here are several reasons why you might consider opting for a Non-QM Loan:

  • Flexible Qualification Criteria: Unlike traditional loans, Non-QM Loans allow you to qualify based on bank statements, rental income, or 1099 forms, making them accessible to self-employed individuals and investors.
  • Higher Loan Amounts: These loans can provide financing amounts up to $5 million, accommodating larger investments and properties.
  • Interest-Only Payment Options: Many Non-QM Loans offer the option for interest-only payments, which can help manage cash flow in the early stages of the loan.
  • Self-Employment Friendly: For business owners, Non-QM Loans are tailored to recognize your actual income, bypassing the need for extensive documentation like tax returns.
  • Investment Property Financing: Non-QM Loans can be used to finance multiple investment properties, making them ideal for real estate investors looking to expand their portfolios.

    • Understanding Non-QM Loans is essential for self-employed individuals, freelancers, and investors looking for flexible mortgage options. These loans allow borrowers to qualify based on alternative income documentation, making them a viable option for those with unconventional income sources. For example, if you’re a freelancer, you can utilize your bank statements or 1099 forms to demonstrate your income instead of traditional W-2 forms. This flexibility opens doors for many individuals who may struggle to obtain conventional financing.

    One of the main benefits of Non-QM Loans is the ability to finance investment properties with more lenient requirements. For instance, if you own multiple rental properties, you may qualify for a larger loan amount based on the potential rental income rather than just your personal income. This can empower investors to expand their portfolios more rapidly.

    Additionally, lenders may offer Non-QM Loans with unique features such as interest-only payment options. This means that during the initial period of the loan, you can pay only the interest, which may lower your monthly payments significantly. For instance, if you take out a $500,000 loan with an interest-only option, your payments could be substantially lower in the early years, giving you more cash flow to invest elsewhere.

    Furthermore, Non-QM Loans can cater to high-net-worth individuals who may prefer to keep their income documentation private. Many self-employed individuals find it beneficial to avoid disclosing their exact earnings due to varying income levels throughout the year. With Non-QM Loans, they can present their financial status through bank statements or other documentation that reflects their actual cash flow.

    Another advantage is the more straightforward approval process for unique properties. If you’re interested in purchasing a non-traditional home such as a tiny house, a houseboat, or a property in a rural location, Non-QM loans can provide options that conventional loans typically do not cover. This means that you have the freedom to explore various property types without the limitations often imposed by traditional lenders.

    It’s important to note that while Non-QM Loans offer greater flexibility, they may also come with slightly higher interest rates compared to conventional loans. This is due to the increased risk lenders take on when approving borrowers with non-traditional income sources. Nevertheless, the benefits often outweigh the costs for many borrowers.

    In summary, Non-QM Loans provide an essential alternative for those facing obstacles in standard mortgage qualifications. Whether you are self-employed, an investor, or looking to purchase a unique property, understanding how Non-QM Loans work can lead to significant financial opportunities.