Non-Qualified Mortgage In Lubbock

A non-qualified mortgage, also known as a Non-QM, is a loan that does not meet the qualifications of a qualified mortgage and relies on non-traditional means of income verification to enable a borrower to obtain a home mortgage. These loans are designed for borrowers who have atypical income eligibility circumstances.

Qualified vs. Non-Qualified Mortgage

Non-QM loans are mortgages that do not meet the Consumer Financial Protection Bureau’s (CFPB) standards for qualifying mortgages. A qualifying mortgage meets the CFPB’s “ability to repay” requirement, which requires lenders to analyze your financial condition and set loan terms that you are likely to be able to repay.

Benefits of Non-Qualified Mortgage

A non-qualified mortgage loan, often known as a “non-QM” loan, is beneficial for several reasons. People who are self-employed, run their own enterprises, or have non-traditional occupations are subject to fewer constraints regarding the documentation of their income compared to those traditional companies employ. In addition, the application process for a non-qualified mortgage is nearly the same for a conventional loan.

Borrowers who have problems qualifying for a conventional loan due to credit worries can bridge the gap with non-QM loans. Some examples are self-employed borrowers, borrowers with non-traditional income sources, and borrowers with unconventional revenue sources. Non-QM loans have underwriting standards that enable the lender to examine your “bigger picture” financial history. This allows the lender to evaluate a borrower’s potential to repay the loan based on a somewhat different set of criteria.

Suppose you cannot qualify for a conventional mortgage but have enough income to make payments on time and regularly. In that case, you may be eligible for a non-qualifying mortgage.

People in these unusual income scenarios may find Non-QM loans a practical option.

• Self-Employed;
• Prime borrowers with high debt-to-income ratios;
• Borrowers with marginal credit but have sufficient income;
• Borrowers with substantial assets;
• Real estate investors;
• Foreign National buyers

Apply for a Non-Qualified Mortgage in Lubbock

If you are concerned about the security of non-qualified mortgages (non-QMs), it is crucial to understand that they are not the same as subprime mortgages. Because we are a direct lender, Capital Home Mortgage manages the entire process, from the application to the final closing. Simply call us at (806) 589-3428 and ask to speak with one of our Mortgage Professionals about the steps you need to do to qualify for a Non-Qualified mortgage.