What are Non-Qualified mortgages?
Non-qualified mortgages (non-QM). Simply put, give borrowers the ability to qualify for a mortgage using alternative methods of income verification. Alternative methods range from using bank statements, to counting subject property rental income, to P&L statements or 1099 statements. Non-QM loans offer the biggest value to self-employed individuals and anyone unable to qualify by using their tax returns.
What are some Advantages of Non-QM Loans?
There are many advantages of non-QM loans. Here are some of the key advantages which demonstrate the flexibility and usefulness of these programs.
- Tremendous underwriting flexibility
- No savings or reserves required (in some cases)
- Flexibility of interest-only loan options
- Non-salaried and unconventional employment accepted