Section 2: Am I Eligible for a NON-QM Loan
Eligibility For a NON-QM Loan
In general, we find borrowers are in one of these situations that best fit a NON-QM borrower. Those situations are, borrowers who are self-employed, borrowers with high net-worth, borrowers investing in multiple rental units, borrowers with recent bad credit, borrowers who are foreign nationals, and borrowers who want an interest-only payment option. While there are no uniform underwriting standards for non-QM loans, lenders tend to specialize in certain types of non-QM products. Interest rates and loan terms may vary widely from lender to lender. A non-qualified mortgage loan is more commonly referred to as a Non-QM loan. Within the mortgage industry, a qualified home loan is one that complies with the requirements set forth by the Consumer Financial Protection Bureau (CFPB) and standards set by the federal government. These include loans sold or insured by entities such as Fannie Mae or Freddie Mac. Not every borrower fits neatly inside a traditional government matrix.
*Don’t meet the minimum requirements? You still may be eligible: talk with an Orbit Home Loan specialist today. (CLICK)
Down Payments
Non-QM Down Payment Requirements For Home Buyers is anywhere between 10% to 30% on a home purchase.
Start your application now (CLICK)
Documents Your Lender May Require
- W2s or 1099’s
- Bank Statements
- Pay Stubs
- Asset Statements
- Liability Statements
- Legal ID
Contact a lender and verify eligibility (CLICK)
Conventional Lender Requirements
Credit and Income
Many Non-QM borrowers have high credit scores and high net worth. However, many borrowers may not benefit from traditional government and/or conventional mortgages due to one of many reasons. It can be due to the maximum loan limit. Or it may be due to not having a steady income or no income but having a high net worth. High net worth individuals with a lot of assets may qualify for our Non-QM asset-depletion loan program but not qualify for a traditional mortgage. In this article, we will discuss and cover non-QM mortgages and alternative financing loan programs.
- The average credit score was 760
- The average down payment was 21%
- The average DTI ratio for non-QM homebuyers was higher in contrast to the DTI ratio for QM homebuyers
Complete the application (CLICK)
How to Apply for a Conventional Loan
Get started today with one of the best and most secure ways possible. Here are Orbit Home Loans we have a trusted team ready to help you find your dream home. Talk with you trusted Orbit Home Loans broker that knows conventional loans and how to get the most from this hard-earned benefit. The process typically starts with getting pre-approved, which can often be done in minutes using your phone, laptop or tablet.
Loan pre-approval is a key first step before making an offer on your dream home. Having that pre-approval letter gives you a clear sense of your buying power and shows sellers and listing agents you have what it takes to get to closing.
Questions about whether you qualify? (CLICK)