Non-QM
FLORIDA MORTGAGE LOAN EXPERTS YOU CAN TRUST
At Mortgage Queen Florida LLC, we’re your trusted mortgage company, specializing in reliable and convenient mortgage loan services throughout Florida. As Florida mortgage specialists, we have the expertise and experience to help you find the loan option to fit your unique needs. Learn more about the mortgage loan options we help with below and contact us to get started.
What Is a Non-Qualified Mortgage?
A non-qualified mortgage (commonly referred to as “non-QM”) is a type of mortgage loan that does not meet the eligibility criteria of a qualified mortgage under the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) rule. Non-QM loans are typically offered to borrowers who don’t fit into the traditional QM lending box.
Who Does a Non-qualified Mortgage Benefit?
Non-qualified mortgage loans (non-QM loans) are a great option for individuals who may not meet the standard requirements for conventional home loans. These loans provide an opportunity for borrowers with low credit scores, high debt-to-income ratios, or who are self-employed to purchase a home. Non-QM loans give these individuals a chance to take advantage of homeownership, despite not being able to meet the usual requirements for a traditional mortgage.
Non-QM Loans Can Help Borrowers Who Don’t Meet Conventional Loan Requirements
Non-QM loans are an excellent option for borrowers who don't meet the traditional requirements for conventional home loans. These alternative underwriting methods are designed to provide more flexibility with documentation and underwriting guidelines, making them perfect for those who don't fit the standard criteria. By using non-qualified mortgage loans, borrowers can gain access to a mortgage they may not have otherwise been able to obtain.
When Non-QM Loans May Be Your Best Option
Non-QM loans are an excellent option for borrowers who face challenges in obtaining conventional home loans. These alternative underwriting methods provide more flexibility with documentation and underwriting guidelines, making them perfect for those who don't meet the standard criteria. Here are some situations where non-QM loans may be appropriate:
Previous credit issues
such as bankruptcy, foreclosure, or late payments. Learn more.
Irregular income streams
including self-employment, freelancing, or a similar type of work. Learn more.
High levels of debt
make it difficult to meet the Debt-to-Income (DTI) ratio requirements for a conventional mortgage. Learn more.
A lack of credit history
or insufficient credit score to qualify for a conventional mortgage, such as foreign nationals. Learn more
Unique financial circumstances
such as a large inheritance or assets are difficult to document. Learn more.
Consult With a Non-Qualified Mortgage Lender
If you're unsure if you meet the requirements for a non-QM loan, it's best to reach out to a reliable non-qualified mortgage lender, such as Mortgage Queen Florida LLC. This way, you can discuss your unique circumstances, explore your options, and ensure you're able to find a loan that best fits your financial needs. Get in touch with us to apply for our non-QM loan options!
Why Choose Us?
We’re committed to providing the best mortgage loan services
We’re licensed in all of Florida
We’re specialized in cash-based transactions
We take what the banks don’t want, making sure you get the loan you need
What Are the Requirements for a Non-Qualified Mortgage?
Requirements for non-QM mortgages can vary from lender to lender, but generally, borrowers must provide a detailed explanation of their financial history, income, and credit score. Lenders will also look for compensating factors such as a high down payment, significant assets, or a strong employment history.
The Different Types of Non-Qualified Mortgage Loans
There are several types of non-QM mortgages, each designed to meet the needs of different borrowers. Here are a few of the most common non-QM mortgage loans:
Bank statement loans - these loans are designed for self-employed borrowers who may not have traditional income documentation but can provide bank statements to show a consistent revenue stream.
Asset depletion loans - these loans are for borrowers who have significant assets but may not have a high income, and they allow the borrower to use their assets to qualify for the loan.
Interest-only loans - these loans allow the borrower to make interest-only payments for a certain period, usually between 5-10 years, before requiring principal payments.
Non-warrantable condominium loans - these loans are for borrowers looking to finance a condominium that does not meet Fannie Mae or Freddie Mac's eligibility requirements.
The Differences Between Non-QM and Traditional Mortgage Lenders
Traditional mortgage lenders, such as banks and credit unions, follow strict guidelines set by Fannie Mae and Freddie Mac. These lenders typically have higher credit score requirements and may be less flexible with borrower qualifications.
Non-QM lenders, on the other hand, specialize in providing loans to borrowers who don't fit the traditional mold. These lenders are typically more flexible with borrower qualifications and may offer unique loan programs designed to meet the needs of non-traditional borrowers.
It's important to note that non-QM loans may come with higher interest rates and fees than traditional mortgages. However, for borrowers with unique financial situations, a non-QM loan may be the only option to achieve homeownership.
At Mortgage Queen Florida LLC, our Florida mortgage specialists are here to help you find the loan option best for you. We specialize in providing reliable and convenient mortgage loan services throughout all of Florida. Contact our team to learn more about our non-QM loan options and other mortgage loan services!