Non-QM / Alt Doc
A Non-QM loan, or a Non-Qualified Mortgage, is a type of mortgage loan that allows you to qualify based on alternative methods, instead of the traditional income verification required for conventional and government loans.
A Non-QM loan has different underwriting guidelines than conventional or government-backed loans; guidelines follow regulatory guidelines while considering a borrower’s Ability to Repay (ATR) and cash flow.
Available as fixed rate, adjustable rate, fully amortized and interest only.
Alternative documentation for income – bank statements, rental income, assets, other
Good option for Self Employed
Good option for Real Estate Investor
Good option for alternative / challenged credit history
THINGS TO CONSIDER
The overall interest and cost could be higher due to the alternative nature of qualifying.
There may be a prepayment penalty with the loan if on an investment property.