Non-QM loans are mortgages that don’t meet the Consumer Financial Protection Bureau’s (CFPB) requirements to be considered qualified mortgages. Generally Non QM is considered as “Alternative Income documentation” but Non QM loans could have standard income and asset documentation but the borrower may have had a recent credit event that prohibits them from qualifying for a standard Qualified Mortgage. We at Fidelity Direct Mortgage, LLC (FDM) are experts in Non QM Loans.
Borrowers Who are Self-Employed
While standard loan programs require tax documents to prove your self-employed income, FDM offers bank statement mortgages with no need for filed tax paperwork. FDM Team will evaluate deposits based on 12 to 24 months of personal or business statements OR 12 month Business P&L (Profit & Loss) to determine your qualifying income.
Borrowers with High Net Worth
FDM has unique programs designed to fit the needs of high net worth borrowers including but not limited to asset depletion, trust income, no documents loans, etc.
Borrowers Investing in Multiple Rental Units
Non-QM loans may be a good choice for investors who own more than 10 financed investment properties — the limit for most conventional lenders. FDM offers debt-service coverage ratio loans for real estate investors. If the rent on the new home covers the monthly payment, you don’t need other income to qualify. In turn becoming close to a “No Doc” loan.
Borrowers with recent Bad Credit
You may be eligible for a non-QM loan one day after completing a bankruptcy or foreclosure. You typically need to wait two to seven years after a significant credit event for standard loan programs.
Borrowers who are Foreign Nationals
A foreign national is a citizen of another country who lives in the U.S. for brief periods for work or vacation. Non-QM loans for foreign nationals will not require proof of U.S. income, credit or a Social Security number.
Borrowers Who want a Short Term Solution
A self Employed individual who may have started a new business venture or have had a year of low profits may opt for a No Document loan and refinance as soon as tax documents are filed supporting the loan payment. Rates and Points for Non QM Loans are generally higher. FDM team can guide you through negatives and positives of Non QM or any other kind of loan products.