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Best Non-QM Loans Programs and Mortgage Lenders

Best Non-QM Loans

Table of Contents

Best non-QM loan lenders, unlike qualified mortgages, it may be harder to find lenders who offer non-QM loans programs.

So, who are the best non-QM loans lenders?

Just Funded Mortgage should be on the top of your list, but you should also look at the details of
nonqualified mortgage loans. From the different program types to how the process looks like, it’s
crucial to understand them all.

Let us break down what makes a good lender for non-QM loans and understand how you can secure your best deal!

What are non-QM loans?

First up, what exactly are non-QM loans. They stand for non-qualified mortgage loans, which means they do not adhere to the regular Dodd-Frank Protection Act, as qualified mortgages do. Don’t worry, this does not mean that they are unsecure and unsafe!

These loans are designed to cater for borrowers with non-traditional income sources and financial circumstances. For example, entrepreneurs, consultants, investors, and other self-employed individuals. People with DTIs of 43% or higher can also benefit from non-QM loans. While a nonqualified mortgage may have flexible requirements and document verification, you will still be required to submit evidence that you can repay the loan!

Additionally, non-QM loans are also excellent for people who want to apply for an interest-only loan. You will be paying only the interest for the first 5 to 10 years, depending on the terms, which can certainly be more affordable in the short term.

One thing to note is that in most cases, a non-QM loan has a higher rate compared to traditional mortgages.

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Bank Statement Loans
Best Non-QM Loans

Who are qualified for Non-Qualifying Loans?

Are you self-employed? Are you a real estate investor, foreign national, investor with lots of assets but low income, or a retiree? Perhaps you have a business instead of a job, have a high DTI ratio, or a blemished credit score.

If any of the above explains your current circumstances, then you might just qualify for a non-qualifying loan! It simply means that you will need other means of proving your ability to repay the loan amount.

Types of Non-QM Loans Programs

  • No Income Verification Investment Loan: The first type of non-QM loan program you’ll come across is the no-income-verification investment loan, which is the most popular option for real estate investors who don’t have a steady income documentation. Instead, they can use their portfolio to qualify for the mortgage.
  • Bank Statement Loan: Meanwhile, bank statement loans are great for people who can only use their bank statement (personal or business) to verify their repaying abilities. Whether you’re a self- employed borrower or business owner, this can be an excellent alternative to traditional mortgages!
  • Asset-based Loan: Next up is asset-based loans, which let you use your assets as leverage for a mortgage loan. Liquid assets that may qualify include savings accounts, money market accounts, and others.
  • Jumbo Loan: It’s often required to put down at least 20% of the loan amount for jumbo loans, but for some people this is just too much! With a non-QM loan, you may need as little as 10% in down payment, which may be useful for people with “good credit debt” like student loan.
  • Foreign National Loan: For borrowers without a Social Security Number, US credit score, or Tax umber, the Foreign National Loan may be the solution. It’s made for non-permanent residents and have a different set of requirements. This includes a maximum of 70% LTV ratio and a higher down payment.
  • Commercial Investment Property Loan: Real estate investors who are looking to purchase properties for rental purposes may benefit from this option. The property can vary from office, retail, industrial, to multi-family homes, although the specific terms and requirements will depend on your lender.
  • Credit Event Loan: Then, there are also loans available for those who have experienced a recent credit-damaging event. From bankruptcy to short sale, you can still qualify for non-QM loans as long as you meet the minimum credit score and DTI ratio.
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Choosing the Best Non-QM Loans Lenders

Not every lender offers non-QM loans, but a lot of local banks credit unions do! Be sure to look for authorized companies to ensure that you have a safe and secure borrowing experience. If you want to save time, use the services of a mortgage broker so you can compare multiple lenders at the same time!

It’s also important to know that some mortgage lenders will offer better terms than others, so you should always shop around and spend time with your research.

Go for a lender that is easy to communicate and work with, so that you can get quick answers to any of your concern. Just Funded Mortgage is one example of a trustworthy and reliable lender. We always have our customer’s best interests at heart and will provide the most beneficial solution for everyone!

Your Non-QM Loan Application Journey

Before we wrap up today’s post, let’s take a look at the summary of how your loan application
might look like…

  1. After applying, a loan officer will evaluate your unique condition and offer several options and rates.
  2. You have to fill a loan application with the required data and information.
  3. Choose a lender and program that suits you the most.
  4. Lock your mortgage rates and terms!
  5. Receive your application form and disclosures. Make sure to review them carefully before signing.
  6. Submit all the documents required.
  7. The underwriting process begins.
  8. Any agreed-upon appraisals will take place at this stage.
  9. Your loan is approved!
  10. Send in any additional data and information the lender may need.
  11. Review the closing document and sign it.
  12. All done! Your non-QM loan has been funded.

With Just Funded Mortgage, qualifying for a loan to purchase your dream home will not be a stressful experience. Our team of experts have prepared an efficient and simple process tailored for every individual.

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Well, what are you waiting for? Apply for your non-QM loan today and secure the best lender for you!