How Do I Know Which Non-QM Program Is Right for Me?

Not all Non-QM products are right for all, as the diverse programs are designed to meet the unique needs of specific types of borrowers. Determining which Non-QM loans fit your needs requires a deep dive into your goals and finances – best done in consultation with a licensed mortgage loan originator. To help get you started, here are some common borrowing scenarios that may shed light on your situation.

For the Self-Employed

Lots of Americans work for themselves – Pew Research put the number at around 16 million in 2021. Many, if not most, of these folks don’t have pay stubs, W-2s, and other forms of income verification that traditional mortgages often require. And so Non-QM Bank Statement Loans, which consider bank deposits in determining qualification, or similar 1099 Only loans, may be perfect for these borrowers.

For Those With Credit Issues

Credit issues are common. According to Experian, about 16% of Americans have poor credit and 18% have only fair credit. But these credit issues don’t always have to stand in the way of homeownership; many Simple Access® products work for borrowers with credit scores as low as 620. And borrowers with scores as low as 580 may be able to qualify for government backed FHA loans (not a Non-QM mortgage).

For Borrowers With High Net-Worths

A significant number of individuals with high net worths generate income from investments rather than traditional employment with a bi-weekly paycheck. And so they may not have tax returns or W-2 income documentation that properly reflect their credit worthiness. With eligibility based on securities accounts and liquid assets in savings, Asset Qualifier loans – which go as high as $3.5MM – may be right for these borrowers.

For Investors

Simple Access® Non-QM Investor Cash Flow loans are designed with real estate investors in mind, as qualification is based on the income that the property – or multiple properties – will generate when rented. Whether it’s for a primary residence, second home, or investment property, an Investor Cash Flow loan doesn’t consider the borrower’s debt-to-income (DTI) ratio or employment record.

No matter which kind of borrower you are, Luxury Mortgage has the right program for you. Contact us today to talk about your financing needs.