Desirable real estate opportunities typically don’t remain available for long in today’s hot real estate market. Yet many potential homeowners and prospective real estate investors are finding that they aren’t entirely qualified for the standard, traditional mortgage formulas due to factors such as income, credit, or other requirements.
Nevertheless, under many circumstances, a non-QM mortgage (non-qualified mortgage) can make it possible to qualify and move toward a timely purchase using more flexible methods of demonstrating reliability as a borrower. A non-QM loan is not backed, insured or guaranteed for the lender by the federal government, nor is it required to meet their guidelines for qualified mortgages. Therefore, if your income is difficult to prove, your income-to-debt-ratio isn’t ideal, or your credit score is less than perfect, you may want to explore the non-QM option before giving up on buying a home or investing in real estate.
The classic qualified mortgage requires verifiable income, including pay stubs, W-2s, and tax returns. For those who are self-employed, work non-traditional jobs with fluctuating income, or are retired and/or live off investments, a non-QM application can provide for other representations of income including bank statements, rental income, or other assets for example. Additionally, less proof of income is required, and the ability to repay is the consideration. Therefore, these loans can open up real estate purchasing opportunities to more individuals.
Another great benefit of a non-QM loan is that it can allow buyers with lower credit scores, bankruptcy, foreclosure, late payments or other credit issues to purchase real estate. If you have been denied a traditional mortgage due to your credit, or suspect that you might be, a non-QM loan may be a terrific option.
Although it can seem like becoming a homebuyer or investing in real estate is impossible for you, that may not be the case. Non-QM loans are a practical, feasible and credible option for many borrowers.
With 17 years of experience in the home lending business, 1 Stop Lending’s professionalism, expertise and attention to detail is what separates us from the competition. We offer unsurpassed customer service, keeping you informed throughout the process, and have the leading-edge technology to keep your loan moving swiftly.
If you are interested in learning more about non-QM loans, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more.