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A Non-QM loan (also known as a non-qualified mortgage) is a type of home loan designed for those borrowers who can't qualify for traditional mortgages. It is suitable for:

• The self-employed borrowers
• Real estate investors
• Other borrowers with a unique financial situation

Non-QM products offer flexibility. They often come into play and help secure needed financing when Conventional options just don't work.

Non-QM loans come in many types to suit a range of unique cases.

Self-employed people often pick Bank Statement loan first. Lenders look at 12/24 months of bank records to check the borrower's income, instead of W-2s or pay stubs.

Real estate investors find DSCR loans perfect. These home loans focus on how much rent a borrower's property brings in, not their personal earnings.

People who need a bigger loan often go for Jumbo loans. These apply to pricey properties that go beyond the usual Conventional loan caps. People with substantial assets, like savings or investments, can opt for asset-based loans. They can use these assets to qualify instead of providing standard income documentation.

A&D Mortgage offers all these Non-QM loan types, and the choice is always yours to decide which loan type you would prefer.

Typically, specialized non-qualified mortgage lenders like A&D Mortgage offer Non-QM loans. We understand that not everyone has a steady income stream and traditional docs. That's why we offer flexible solutions for different financial situations.

Taxes for Non-QM loans depend on how a borrower uses the loan. If they are buying an investment property, their interest payments might be tax deductible. It is a good idea to consult a tax professional about your specific case.

The process of getting a Non-QM loan is straightforward. Usually, it consists of these 5 steps:

1. Finding a good lender;
2. Getting the documents (bank statements, tax returns, etc.) ready;
3. Submitting an application;
4. Reviewing credit, income, and assets with the lender to make sure all criteria are met;
5. Close the loan and get your funds.

Non-QM loan requirements vary from lender to lender. Here is what A&D Mortgage provides:

Credit score: At least 620

Combined Loan-To-Value (CLTV): up to 90

Proof of income: Bank statements, tax returns, or proof of rental income

Down payment: From 10%

Debt-to-income ratio (DTI): Depends on the type of loan

At A&D Mortgage we created Artificial Intelligence in Mortgage (AIM) to streamline the Non-QM loan process, from submitting the application to closing the loan. AIM is our Partner Portal that helps partners grow their businesses. See the key features and tools of AIM:

• The pipeline to track the progress of every loan and upload the 1003 file
• Non-QM Automated Underwriting System (AUS) to receive real-time loan pre-approval with a preliminary set of conditions
• Self-Disclosure to minimize your turnaround time and create the disclosure package in 1 minute
• Loan Calculator to evaluate your scenario
• ADvantage Loyalty Program to earn rewards and redeem them for valuable gifts
• LEADer CRM to manage your leads and create email campaigns for free

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Looking for the basic steps to apply for a loan? Here they are:

1. Finding a lender

It's a good idea to start by looking for reliable Non-QM lenders, like A&D Mortgage, that understand and work with different financial situations.

2. Gathering documents

Next, it's necessary to prepare documents, such as bank or investment account statements and tax returns, to show financial stability.

3. Submitting the application

Then, a borrower should work on their application with their chosen lender.

4. Getting approved

Once approved, a borrower can move forward confidently and close on their loan.

At A&D Mortgage, we get that everyone has a different story. Not everyone fits into the usual loan criteria. We're all about giving Non-QM borrowers flexibility. Whether they're a self-employed individual, a property investor, or have a unique situation, we can help. We offer good rates, fast approvals, and several Non-QM options to keep things simple.

Of course we do! We run promotions for both non QM and conventional loans on a regular basis. Check out our website to stay updated on our current promotions and special offers.

It is easy – just fill out the broker package. Whenever you are ready, go to Broker Package page and submit the form.

Jumbo loans can be Non-QM if they go over the usual loan limits or do not stick to the regular rules. These kinds of loans are suitable for more expensive homes. They work well for borrowers with good financials who want more flexibility than typical loans offer.

It is possible. If your client wants a better rate, lower monthly payments, or to tap into their home equity, refinancing a Non-QM loan is a smart choice. A&D Mortgage provides such an option. If a borrower's financial situation has improved since the original loan, it's worth checking out.

The transparency in everything is our priority, so let us dive deeper into some of the risks associated with using Non-QM loans:

The risk of financial overextension. Non-QM borrowers may have to spend more funds on interest rates, fees, and down payments.

The risk of losing the home. The borrower may face foreclosure if they cannot keep up with the payments.

Non-QM loans are for people who don't fit into the usual mortgage rules. This includes:

• Self-employed folks with irregular income or no consistent paycheck
• Real estate investors who want to use rental income to get a loan
• Wealthy individuals who can use their assets for financing

Flexibility matters! Borrowers can choose from various payment plans. They can go for fixed rates, adjustable rates, or interest-only payments. We will help borrowers find what works best for their budget.

They are completely different from each other. The most crucial difference is that Conventional loans are governed by Fannie Mae and Freddie Mac guidelines. It means that Non-QM borrowers have to meet all the criteria to qualify. Instead of Conventional loans, Non-QM loans are more flexible and suitable for those who don't follow traditional loan paths, e.g., self-employed or investors.

Here is why Non-QM loans stand out:

1. Higher loan amounts

Non-QM loans include Jumbo options, making it possible to finance larger properties. At A&D Mortgage we have a special program called Prime Jumbo, with loan amounts up to $3.5 million.

2. Flexibility

Multiple options to qualify. Not only can borrowers rely on traditional pay stubs, but they can also use bank statements, rental income, or even assets.

3. Accessibility

Have your clients already applied for a traditional loan but been turned down because they did not meet the requirements? Non-QM loans can be the perfect solution for their scenarios.

As you can see, Non-QM products can accommodate borrowers with specific needs.

If you have equity in your home or investment property, you can use it to get cash. This money can help you:

• Make new investments.
• Refinance your current loan.
• Reach other financial goals.

It depends on the lender. Basically, Non-QM loans don’t have the same protection as other mortgages, like Consumer Financial Protection Bureau (CFPB) for Conventional loans. But Non-QM lenders like A&D Mortgage always keep things clear and fair. We have 20 years of experience with more than 6,000 partners. Before you commit to a loan, it is crucial to fully understand all terms, conditions, and risks. Make sure everything is clear to you.

Yes, you can. Non-QM loans are perfect for buying a second home or an investment property. Options like DSCR loans help real estate investors qualify based on rental income.