A Non-Qualified Mortgage Loan does not qualify under traditional underwriting guidelines, but may help secure financing for a less traditional borrower. Great for self employed entrepreneurs or real estate investors.
Non-Qualified Mortgage (Non-QM) loans are typically for borrowers with unique circumstances and for those who don’t fit the normal “qualified-mortgage box”. Often these loans are for borrowers with non-traditional circumstances like fluctuating income, self-employed independent business owners, contractors, entrepreneurs, artists, etc.
Qualification methods vary from the standard process and product terms may also vary including but not limited to Interest Only loans.