Frequently Asked Questions

Non-QM loans are designed for borrowers who do not meet traditional lending criteria. They offer more flexible qualification standards compared to standard mortgages.

We offer a variety of non-QM loans including bank statement loans, asset-based loans, loans for real estate investors, and interest-only mortgages.

Non-QM loans are ideal for self-employed individuals, investors, and others with unique financial situations that do not fit traditional lending criteria.

To determine your maximum mortgage amount, lenders look at:
Your credit history: Available cash for a down payment and closing costs.
Your Income: Your existing debt and financial obligations.  
Your maximum mortgage amount, plus your planned down payment, equals your home purchase price range.  

A history of paying monthly payments on time indicates you are likely to make mortgage payments on time.  
Your credit score (FICO score) can be a factor in the kind of mortgage program for which you may qualify for.

Your credit history can also affect:
The amount required for a down payment.  
The amount of money you can borrow in relation to your income.  
The interest rate you are offered.   

Today’s flexible mortgage programs make down payments less of a challenge.  Some homebuyers may be eligible for down payment assistance.  You may be able to buy a home with a very low-down payment.  Loans with down payments of less than 20% typically require mortgage insurance. Most programs also require funds equal to 3-6 month’s loan payments in reserve after closing.  

Generally, closing costs equal between 3% and 7% of the home purchase price.  “Prepaids” must be collected at closing to cover the next month’s taxes, interest, and insurance.  Some programs allow all or partial closing costs to be paid by home sellers.  

The process of spreading out a loan amount into a series of fixed payments to be paid off over a specified period of time. Part of each regular payment goes towards the loan principal and part towards interest.

non-QM Loans are a game-changer for several types of borrowers who are capable and deserving of owning a home or investing in real estate but might not tick all the boxes for a traditional loan. Here’s a look at who might find a non-QM Loan to be their golden ticket:
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Self-Employed Professionals: If you’re your boss, you know that your income might not always look stable on paper, even if you’re doing quite well. non-QM Loans can allow for alternative documentation to prove your income, making the dream of homeownership much more accessible.
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Real Estate Investors: Looking to expand your portfolio but finding traditional mortgage criteria a bit limiting? non-QM Loans offer the flexibility that savvy investors often need to make their next big move.
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Those with Unique Financial Situations: Whether it’s a bumpy credit history or unconventional income sources, a non-QM Loan recognizes that life doesn’t always follow a straight path—and that shouldn’t disqualify you from buying a home.
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High Net Worth Borrowers: Sometimes, the very wealthy find that traditional mortgage products don’t cater to their unique financial landscapes. non-QM Loans can offer the flexibility and terms that make more sense for high-net-worth individuals.
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Interest rates may be higher due to the increased risk, but they provide financing opportunities for those who might not otherwise qualify.

The maximum LTV can vary, often up to 80-90%, depending on the loan type and borrower’s qualifications.

Yes, bank statement loans are a type of non-QM loan where bank statements are used to verify income instead of traditional income documents.

While credit requirements are more flexible, a higher credit score can still help secure better terms.

Rates vary based on the borrower’s profile and market conditions. It is best to get a personalized quote.

Yes, non-QM loans are available for investment properties, often with different terms compared to primary residences.

This varies by loan product; some may have prepayment penalties, while others do not.

Requirements can vary, but typically include bank statements, asset documentation, and a credit report.