A Nonqualified Mortgage (non-QM) is the category that covers all the loans that do not fit the Qualified Mortgage (QM) characteristics. Therefore, it accommodates people who do not have the standard documentation to prove that they are capable of making those mortgage payments or have credit issues. If you do not fit into the conforming mortgage model but still have the credentials like sizeable assets or a big, if sporadic income, you can qualify for a non-QM.
Here are some reasons to get an outside the box, Non-QM loan:
Self-employed for less than 2 years
Self-employed and not showing a great amount of income on tax returns
High debt ratio yet plenty of reserves to make up for the debt ratio
Blemished credit due to unforeseen circumstances during the downfall of the economy
To learn more about Non Qualified Mortgages, please contact Quality Direct Funding.