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Non-QM loans

Traditional mortgages backed by organizations like Fannie Mae and Freddie Mac, or government programs like FHA, VA, and USDA, have specific requirements related to income, credit, and job stability. But what do homebuyers do if they don’t meet these criteria?

Non-Qualified Mortgage loans (Non-QM loans) can be the solution.

Who are Non-QM loans for?

Non-Qualified Mortgage loans are designed for any home purchase or refinance that doesn’t fit traditional guidelines. By going beyond the norm, we can help more people achieve their homeownership goals.

That includes self-employed borrowers, real estate investors, homebuyers without a Social Security number, people who recently went through a credit event, and so many more!

Types of Non-QM loans

CCM Signature Expanded Bank Statement Loan

Allows borrowers to qualify for financing using only their bank statement deposits.

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CCM Signature Expanded Investor Cash Flow Loan

Real estate investors can use their rental income to qualify for financing.

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CCM Signature Expanded ITIN Loan

Find out the benefits that refinancing your property could have for you.

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CCM Signature Expanded 1099 Loan

A way for self-employed borrowers to qualify using 1099 income.

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CCM Signature Expanded Foreign National Loan

Buyers living abroad can finance a vacation home or investment property in the U.S.

CCM Signature Expanded Asset Qualifier Loan

High-net-worth borrowers can qualify for financing solely using their assets.

 

CCM Signature Expanded Full Doc Loan

A financing solution that goes beyond traditional guidelines; used for unique situations.

CCM Signature Expanded P&L Loan

A solution for business owners to qualify using their professionally prepared P&L statements.

CCM Signature Expanded WVOE Loan

Qualifies buyers using only a written verification of employment.

Non-QM loan pros

TNon-QM loans allow non-traditional borrowers to finance their homes. This can include:

  • Retirees
  • Real estate investors
  • Self-employed or “gig” workers
  • Borrowers with a high debt-to-income ratio
  • Borrowers with blemishes on their credit history

Alternative documentation makes these opportunities possible.

The CFPB maintains standards for determining a borrower’s ability to repay a home loan. Typically, the following documents are used to determine if you meet requirements:

  • W-2s
  • Bank statements
  • Pay stubs
  • Tax returns

But Non-QM loans allow you to qualify outside of these typical terms using alternative documentation; like 1099s, P&L, WVOE, bank statements, and rental income.





Non-QM loan cons

Since Non-QM loans don’t follow traditional guidelines, they cannot be purchased by Fannie Mae or Freddie Mac or backed by government agencies like the FHA or USDA.

This means lenders take on all the risk when issuing a Non-QM loan. To cover this risk, Non-QM loans often come with higher interest rates compared to conventional mortgages, which can increase your monthly payment.

Non-QM loans can also come with loan periods that exceed 30 years. While this may benefit some borrowers, it keeps you locked into your mortgage for a longer period and increases the total amount you pay for your home.

Non-QM loan requirements

The exact criteria for a Non-QM loan will vary by the program. But in most cases, Non-QM loans will offer greater financial flexibility than traditional loans.

Credit history

Even if your credit score is fair or poor, you can still meet the requirements for a Non-QM loan. Most Non-QM loans allow borrowers with a credit score of 620 to qualify, while some open the door to homeownership for individuals with credit scores as low as 500.

Debt-to-income ratio

For a conventional loan, borrowers are expected to have a debt-to-income ratio of 43% or lower. But Non-QM loans are available for individuals with a debt-to-income ratio of 50% or even higher – providing loan options to those whose debts might otherwise prevent them from achieving their homeownership dreams.

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How to get a Non-QM loan

01

Talk to a CCM loan officer

Our loan officers have experience and expertise in Non-QM loans and will be happy to help determine which one is right for you.

02

Complete a loan application

At CCM, we offer a convenient online application, or you can contact our loan officers directly to help start the process.

03

Get approved to lock in your interest rater

We’ll help you determine if you meet the requirements for a Non-QM loan and, if you do, start a streamlined approval process that allows you to lock in an interest rate for the duration of your loan.

04

Receive your loan and close your home

We’ll help you set up convenient monthly payments according to your repayment schedule so you can move in with peace of mind.

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Non-QM loan FAQs

Here are answers to a few questions you may have, but as with any mortgage, your loan officer is your best resource.



 

Ready to make your move with a Non-QM loan?

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