Non-QM Home Loans

The home financing alternative for those who need creative financing options to purchase real estate

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What Are Non-QM Loans?

Non-QM loans are mortgages that don’t meet the qualified mortgage (QM) standards set by the Consumer Financial Protection Bureau (CFPB). These loans may be more suitable for borrowers who have difficulty qualifying for traditional QM loans due to their credit score, income, debt-to-income ratio, or other factors. Generally speaking, non-QM loans allow borrowers to provide alternative forms of documentation for income that other government-backed programs do not allow.

Whether you’re a first-time home buyer looking for more lenient credit requirements, a real estate investor seeking a loan that takes into account your total asset pool, or a retiree with significant savings but a reduced monthly income, Non-QM Loans could open the doors to opportunities previously unattainable. 

At Andes Mortgage LLC, we specialize in Non-QM loans. Our team of experienced loan experts are ready to help you find the right Non-QM loan option for your unique situation. We provide our clients with personalized service and a variety of non-QM loan options, tailored to meet their individual needs.

The Power of Non-QM Loans: Where Flexibility Meets Opportunity

Traditional loans often fall short when dealing with unconventional financial situations. That’s where Non-QM Loans come into play, offering a unique set of benefits tailored to your individual needs:

Flexibility: Non-QM Loans are not one-size-fits-all. They offer a range of products tailored to fit unique borrower situations like self-employment, varying income sources, or complex financial portfolios.

Inclusivity: For those with unconventional income sources or credit histories, Non-QM Loans provide an inclusive alternative to traditional loan options. 

Greater Borrowing Potential: Non-QM Loans may allow for larger loan amounts compared to conventional loans. Ideal for high-value property investments or real estate ambitions that demand a larger financial backing.

Interest-Only Options: Certain Non-QM Loan products offer interest-only payment options, allowing for lower monthly payments and increased cash flow.

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Discover a Variety of Non-QM Loan Programs Tailored to Your Unique Financial Picture

Non-QM Loans are not a one-size-fits-all solution. These specialized loan programs cater to diverse financial situations.

Explore the different types we offer and find the one that suits your needs:

1099 Loans: Designed for independent contractors or freelancers, 1099 Loans use your average income over the past 24 months to determine your ability to repay the loan. This allows for a broader and more realistic picture of your earning capacity.

Bank Statement Loans: This type of loan is perfect for self-employed borrowers. Rather than relying on W-2 forms, bank statement loans use deposits shown in your bank statements to determine your income, enabling a more accurate reflection of your cash flow.

P&L Loans: Profit and Loss (P&L) Loans are ideal for business owners, considering the net profit from your business as stated in your Profit and Loss statement. This loan type provides a flexible way to showcase your income.

DSCR Loans: Debt Service Coverage Ratio (DSCR) Loans evaluate your ability to service your mortgage based on the rental income of the property. Perfect for real estate investors seeking to expand their portfolio without traditional income verification.

Asset Depletion Loans: Asset Depletion Loans consider your liquid assets and investments, not just your income, to determine loan eligibility. This is great for retirees or high-net-worth individuals with significant asset holdings but lower regular income.

Foreign National Loan: Catering to non-US citizens or residents who seek to invest in US real estate, Foreign National Loans allow property acquisition without traditional US-based income or credit history.

Non-QM Jumbo Loans: For larger loan amounts, and borrowers who may have had a derogatory credit event such as foreclosures or bankruptcies, Non-QM Jumbo Loans can be an ideal solution.

Important Considerations for Non-QM Loans

Navigating the world of Non-QM Loans requires understanding a few key elements. Here’s what you should know:

Minimum Down Payment: While Non-QM Loans can offer more flexibility, they often require a higher down payment compared to traditional loans. Generally, a minimum of 10-20% down payment is required, but this can vary depending on the loan type and your financial situation.

Credit Scores: Credit score requirements for Non-QM Loans are more lenient, offering opportunities for those with lower credit scores. However, a better credit score may provide more favorable terms.

Income Verification: Non-QM Loans are designed for unconventional income, but you’ll still need to prove your ability to repay the loan. This may involve 1099 forms, bank statements, P&L statements, or other income or asset verification.

Remember, Non-QM Loans open new doors but understanding the requirements ensures you’re well-prepared for this financial journey.”

Here are a few things you should know about Non-QM Loans

Here is a comprehensive summary of things to keep in mind when getting a Non-QM loan.

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Apply for a Non-QM loan at Andes Mortgage LLC

With the amount of misinformation spread out there and the volatility in interest rates in the market, you definitely want to put your biggest asset (and liability) in the hands of a professional. 

With over 15 years of experience in home lending and access to some of the lowest rates in the market, Andes Mortgage LLC is a boutique brokerage with the ability to offer a variety of conventional loan products that many other lenders don’t. 

We don’t put you on a switchboard and we promise that you are not going to speak to a customer service rep in a boiler room looking to make you fill out an application and run your credit. We give you personal, tailored information that is unique to you and your financial situation.

Give us a call at 770-740-4050 or simply click the button below to get in contact with us.

Frequently asked questions about Non-QM Loans

Are Non-QM Loans more expensive than traditional loans?

Generally speaking, Non-QM Loans may have higher interest rates compared to traditional loans. However, the overall cost of a loan will depend on several factors including your credit score, financial situation, and loan terms.

How long do I need to wait for a Non-QM Loan?

Non-QM Loans can be approved quickly – in as little as two weeks. The time to approval may vary depending on the lender and your individual financial situation.

How much money do I need for a down payment on a Non-QM Loan?

Generally, 10-20% down is required for Non-QM Loans, although this may vary depending on the program and your financial situation.

Are Non-QM Loans considered Hard Money Loans?

No. Non-QM Loans are specialized loan products that offer an alternative to traditional loans. While they may have some similarities, Hard Money Loans and Non-QM Loans are not the same type of product.

Is PMI Required on Non-QM Loans?

No, Private Mortgage Insurance (PMI) is not required on Non-QM Loans even if the down payment is less than 20%.

Are there any pre-payment penalties on Non-QM loans?

Yes, there may be a pre-payment penalty on investment, DSCR loans.