Non-QM Loans
Specialized loans that don't meet standard criteria. CCM underwrites and processes a majority in house ensuring an efficient transaction.
What is a Non-QM loan?
Traditional mortgages backed by organizations like Fannie Mae and Freddie Mac, or government programs like FHA, VA, and USDA, have specific requirements related to income, credit, and job stability. But what do homebuyers do if they don't meet these criteria?
Non-QM loans are mortgages that offer their own set of criteria, often including more flexible income and credit requirements. These fall outside traditional criteria set by the Consumer Financial Protection Bureau (CFPB).
Who are Non-QM loans for?
Types of Non-QM Loans
We offer various Non-QM loan programs to meet your unique financing needs
Bank Statement Loan
Allows borrowers to qualify for financing using only their bank statement deposits.
DSCR Loan (Investor Cash Flow)
Real estate investors can use their rental income to qualify for financing.
ITIN Loan
Gives borrowers without a Social Security number a way to qualify for home financing.
1099 Loan
A way for self-employed borrowers to qualify using 1099 income.
Foreign National Loan
Buyers living abroad can finance a vacation home or investment property in the U.S.
Asset Qualifier Loan
High-net-worth borrowers can qualify for financing solely using their assets.
Non-QM Loan Benefits & Considerations
Benefits
Alternative Documentation
Qualify using 1099s, P&L statements, bank statements, and rental income instead of traditional W-2s.
Flexible Credit Requirements
Most Non-QM loans allow borrowers with credit scores as low as 620, some even down to 500.
Higher Debt-to-Income Ratios
Available for individuals with DTI ratios of 50% or even higher, beyond conventional limits.
Considerations
Higher Interest Rates
Since lenders take on additional risk, Non-QM loans typically come with higher rates than conventional loans.
Larger Down Payments
Some programs may require larger down payments to offset the increased risk.
Extended Loan Terms
Some Non-QM loans offer terms beyond 30 years, which increases total interest paid.
How to Get a Non-QM Loan
Our streamlined process makes it easy to explore your Non-QM loan options
Talk to Ken
Ken has the experience and expertise in Non-QM loans and will be happy to help determine which one is right for you.
Complete a loan application
At CCM, we offer a convenient online application, or you can contact our loan officers directly to help start the process.
Get approved to lock in your interest rate
We'll help you determine if you meet the requirements for a Non-QM loan and start a streamlined approval process.
Receive your loan and close your home
We'll help you set up convenient monthly payments according to your repayment schedule so you can move in with peace of mind.
Non-QM Loan Requirements
Non-QM loans offer greater financial flexibility than traditional loans
Credit History
Even if your credit score is fair or poor, you can still meet the requirements for a Non-QM loan. Most Non-QM loans allow borrowers with a credit score of 620 to qualify, while some open the door to homeownership for individuals with credit scores as low as 500.
Debt-to-Income Ratio
For a conventional loan, borrowers are expected to have a debt-to-income ratio of 43% or lower. But Non-QM loans are available for individuals with a debt-to-income ratio of 50% or even higher – providing loan options to those whose debts might otherwise prevent them from achieving their homeownership dreams.
Ready to Explore Non-QM Loan Options?
Contact Ken Jester today to discuss how Non-QM loans can help you achieve your homeownership goals, even with non-traditional financial circumstances.
KEN JESTER
Sales Manager | NMLS# 1593847
Cross Country Mortgage, LLC # 3029