Non-Qualifying Mortgage Loans

Non Qualifying Mortgages, often referred to as non QM loans, are home loans that don’t meet traditional lending requirements. This means that a borrower can secure a mortgage even if they don’t tick every box—i.e., verifiable income or debt-to-income ratio requirements.

Non-QM loans came about as a response to the traditional lending requirements laid out by the 2010 Dodd-Frank Act. This act established government agencies to oversee the country’s financial system. One of these agencies, the Consumer Finance Protection Bureau, ensures that there are no predatory lenders offering low-credit borrowers loans with high interest rates.
There are many kinds of borrowers who may be interested in and qualify for a non-QM loan. This includes those who are self-employed and receive varied income every month, retirees, borrowers with high assets and low income, borrowers with a high debt-to-income ratio, and more.