Home mortgage loans fall into two categories, a QM, or Qualified Mortgage, or a Non-QM, or non-qualified mortgage.

Qualified Mortgage

Qualified mortgages fit into the strict government ATR Guidelines, which means 'Ability-to-Repay' the loan. These are all your standard traditional loans, and you must fully document your income with the standard methods of pay stubs, W2's, and tax returns.  You must also fit into strict debt-to-income guidelines.

QM loans are fine for most people, but not everyone. Especially the self-employed, whos tax returns might not show the true picture of their income.

Non-QM Loans: Bank Statement Loans

Many people, especially the self-employed have trouble meeting strict qualified mortgage income guidelines. We are still able to offer these people loans, under the Non-QM rules, which basically allows lenders to qualify the person using non-traditional documentation.

The most popular option are bank statement loans. With this program, available for the self-employed only, we will use the last 12 or 24 months of either your personal or business bank statement deposits as income.

Non-QM Investor Loans

The next most popular non-QM loan is for investors. This loan allows an investor to buy or refinance rental property with no income proof whatsoever!

The loan simply looks at the amount of rent being collected, and the new mortgage payment.  If the mortgage payment is less than the rent, that is all the proof needed.

The Good Vs the Bad of Non-QM Loans

The good news is these alternative documentation, or even no documentation loans are available. They are clearly needed to fit a small portion of the home mortgage market.

The bad is that because they are higher risk loans, the do come with higher interest rates, and bigger minimum down payment requirements.

We Offer Non-QM loans

We offer both the bank statement loans, and the no documentation investor rental property loans.  Feel free o call our loan experts at (651) 552-3681, complete our contact form with any quick questions, or Live Chat via this web site (Red circle in lower corner).