Dallas Non-Qualified Mortgage

Standard loans impose stringent requirements. Accessing a loan can be tricky since it would be impossible to tick all the loan requirements. An alternative solution for individuals needing mortgage financing is to take a Non-qualified mortgage or non-QM.

Capital Home Mortgage offers non-QM loans to interested applicants in Dallas with unique sources of income or low credit scores. We’ll work with you to find the best loan deal that benefits both parties. Learn more about non-QM loans or contact our home loan specialists today for greater detail.

What is a Non-QM Loan?

A non-QM loan is a mortgage program that doesn’t comply with the standard requirements of a qualified loan. The Feds set minimum requirements for all loans, such as the required credit score and down payment. In a non-QM, borrowers can submit an alternative requirement to replace the minimum requirement.

At Capital Home Mortgage, we still use the minimum requirements set by the Feds, but we give more leeway and flexibility to the borrower. Hence, you’ll need to submit all requirements you can produce, and we’ll review them carefully.

Qualification Requirements for Non-QM Loans

The requirements are similar to standard loans. The only difference is that we might accept an alternative form of documentation for a home loan. We still operate within legal and administrative requirements. We might ask you to provide documents such as W-2 statements, pay stubs, and tax returns. If you’re receiving remittances or alimony, we’ll need to see strong evidence of these sources of income.

Your credit score is much of a factor for non-QM loans. However, credit scores don’t immediately dictate the outcome of the application. We must examine other requirements and exhaust all options before denying the application.

What to Watch Out for in Non-QM Loans

In non-QM loans, there are unique features that you might encounter. First, there are interest-only payments. This kind of feature doesn’t amortize the principal amount of the mortgage. You only pay the interest that accrues and eventually settle the principal amount at maturity. Non-QM loans might also have longer loan terms than usual. It can be 40 or 50 years compared to conventional loans’ most extended 30-year term. Lastly, there might be balloon payments. Under this feature, you’ll pay a more significant amount after the end of an agreed-upon period.

With non-QM loans, expect the lender to impose high-interest rates and upfront fees to compensate for the risk of lending. You can reduce this by providing strong evidence of income source or good credit history.

Apply for a Non-QM Loan in Dallas

Just because you don’t qualify for traditional mortgages doesn’t mean you can’t access home financing when needed. Talk to our mortgage specialists about your non-QM loan in Dallas today. Give us a call at (214) 372-0015 to get started.