What is a Non Qualified Mortgage?

Non-QM Correspondent Mortgage Loans

A Non-Qualified Mortgage (Non-QM) is any home loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages (QM). Usually this type of correspondent mortgage loan accommodates people who are not able to prove they are capable of making the mortgage payments. Just because it is a Non-QM correspondent mortgage loan does not necessarily mean high risk or subprime mortgage risk, and in many cases these correspondent mortgage loans require a high FICO score but simply do not check all the boxes associated with a correspondent QM loan. The main difference between the two types of correspondent mortgage loans is that correspondent Non-QM loans for mortgages are protected by the lender against any type of lawsuit should you become unable to afford the mortgage loan. Typically, individuals experiencing one or more of the following may qualify for this alternative:

  • High debt ratio
  • Blemish on FICO credit to unforeseen circumstances
  • Self-employed for less than two years
  • Low income on tax returns

TO SEE IF YOUR CLIENTS MIGHT QUALIFY FOR OUR MORTGAGE LENDING PRODUCTS OR HAVE ANY OF YOUR QUESTIONS ANSWERED,  Please contact Dan Cassel and the Trinity Mortgage Broker team at 866-310-1112.

 

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