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Non-QM mortgages are a type of mortgage that allows borrowers to get a loan without having to provide extensive documentation or meeting traditional income qualifications. There are many benefits of Non-QM loans. For one, non-qualified mortgage loans are great for clients working with mortgage brokers. Mortgage brokers can offer borrowers a wide range of loan products and get the best interest rates for their clients. They can also work with self-employed borrowers who may have difficulty qualifying for a traditional mortgage. In this article, we will discuss some of the main advantages of Non-QM mortgages as of August 2024.
This article was originally published on July 28, 2022.
8 Great Benefits of Non-QM Loans
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Unlock Rewards- Self-employed? No problem! If your client is self-employed, you know that it can be difficult to qualify them for a traditional mortgage. Non-QM mortgage lenders like A&D Mortgage are more flexible when it comes to income documentation, so self-employed borrowers can qualify for a loan.
- Credit score? No problem! If your clients have less than perfect credit, they may still be able to qualify for a Non-QM mortgage. Some lenders offer loans to borrowers with a credit score as low as 620, like our DSCR loan.
- No income verification required. If your clients don’t have W-2 incomes, we may still offer them a loan. This is because Non-QM loans are not restricted by the Qualified Mortgage guidelines that require borrowers to verify their income.
- Higher loan amounts up to $4 million. If your clients want to finance a high-end home, with A&D Mortgage they may be able to get a loan for up to $4 million. This is because Non-QM loans are not restricted by the Qualified Mortgage limit of $766,550 (as of 2024.)
- Loan terms to fit your needs. Non-QM loans can have terms that fit your borrowers’ unique financial situations. If they need a longer loan term or want to make interest-only payments, you will find a Non-QM loan that meets your needs.
- Fast funding. Non-QM loans can be funded faster than traditional loans as the underwriting process is often quicker and there is less documentation required.
- No DTI requirements. There are no debt-to-income ratio requirements with some Non-QM loans, so your client can qualify even if their DTI is high.
- Lenient seasoning guidelines. With some traditional loans, your clients may need to wait 12 months after a major financial event before they can qualify. With Non-QM loans, this waiting period is often shorter or even non-existent.
Benefits of Non-QM Loans with A&D Mortgage (August 2024)
At A&D Mortgage, we offer a comprehensive range of Non-QM mortgage loan programs tailored to meet diverse borrowing needs. Our Non-QM solutions provide flexibility and accessibility for various borrower types, ensuring you can find the perfect fit for your unique financial situation. Here’s a snapshot of our Non-QM offerings:
DSCR Loans
- Min. FICO: 620
- CLTV: Up to 80%
- Key Benefits: Fastest turn times in the industry, no income or employment verification, short-term rental options available, credit for DSCR >1.25.
DSCR loans:
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- DSCR as low as 0
- No income and no employment needed
- Fastest turn times in the industry
12/24 Month Bank Statement Loans
- Min. FICO: 620
- CLTV: Up to 90%
- Key Benefits: Ideal for self-employed borrowers, personal/business/combined bank statements, concierge service for income calculation, 3 months of reserves required.
Bank Statement:
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- The perfect fit for self-employed borrowers
- Up to 90% CLTV, loans up to $4M
- Low FICO options (from 599)
ITIN Loans
- Min. FICO: 660
- CLTV: Up to 80% (Super Prime), Up to 70% (DSCR)
- Key Benefits: Expand your portfolio for borrowers without an SSN, loan amounts up to $1.5 million.
1Y + 2Y P&L Loans
- Min. FICO: 660
- CLTV: Up to 80%
- Key Benefits: Alternative solution for self-employed borrowers, no bank statements required up to 70% LTV, loan amounts up to $2.5 million.
Check out 1Y + 2Y P&L Loan program
1Y or 2Y Full Doc Non-QM Loans
- Min. FICO: 620
- CLTV: Up to 90%
- Key Benefits: Flexible solution for Full Doc borrowers, loan amounts up to $4 million, DTI up to 55% on owner-occupied properties, 3 months of reserves required.
Check out 1Y or 2Y Full Doc Non-QM Loan program
1099 Loans
- Min. FICO: 620
- CLTV: Up to 85%
- Key Benefits: Perfect for sole proprietors or contract individuals, requires only 1 year of 1099s and history with the same employer, gift funds allowed.
WVOE Loans
- Min. FICO: 620
- CLTV: Up to 80%
- Key Benefits: No tax returns required, 3 months of reserves, suitable for salaried borrowers with no tax returns.
Asset Utilization Loans
- Min. FICO: 620
- CLTV: Up to 80%
- Key Benefits: Ideal for borrowers with liquid assets (retirees, investors, self-employed), qualifying assets/60 months, loan amounts up to $4 million.
Asset Utilization:
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- Minimum FICO 599
- Up to 80% CLTV
- Checking, savings, stocks, bonds
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See Program DetailsForeign Nationals DSCR Loans
- No Score or Min. FICO: 660
- CLTV: Up to 70%
- Key Benefits: Minimal documentation and fast closings, loan amounts up to $3 million, cash-out allowed, DSCR < 1 requires min FICO 680 or no FICO.
Check out Foreign Nationals DSCR Loan program
Foreign Nationals Full Doc Loans
- No Score or Min. FICO: 660
- CLTV: Up to 75%
- Key Benefits: Suitable for Foreign National borrowers with overseas income, loan amounts up to $3 million, overseas assets allowed, RON permitted.
Check out Foreign Nationals Full Doc Loan program
To Sum Up
As you can see, there are many advantages to Non-QM mortgages as of August 2024. If you’re looking for a loan that is tailored to your needs, a Non-QM mortgage may be the right choice for you.
Fortunately, A&D Mortgage has been offering Non-QM loans since the mid-2000s, so we have the experience and knowledge to help you navigate this type of loan. If you’re interested in learning more about Non-QM loans or our other loan programs, contact your account executive today. We’re here to help you find the right loan for your needs.
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As a mortgage broker, your clients rely on your expertise to find them the best deals. Our Quick Pricer tool can be an invaluable asset in your quest to secure the most advantageous mortgage rates. Be sure to explore our Programs section for additional resources tailored to your needs. If you have specific scenarios in mind, don’t hesitate to request them; we’re here to assist you. And if you’re interested in joining forces to provide even more value to your clients, consider signing a Broker Package. Together, we can empower individuals and families to achieve their dreams of homeownership.
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