Non-Qualified Mortgage Loans Bellingham Washington

A non-qualified mortgage, often known as a non-QM, is a home loan that is exempt from the Consumer Financial Protection Bureau’s (CFPB) agency-standard paperwork requirements. Home loans with maturities longer than 30 years may fall under non-QM loans. It is intended to assist homeowners needing help to satisfy the stringent requirements of a qualifying mortgage.

When applying for a non-qualified mortgage, borrowers can utilize non-traditional methods of verifying their income, which can help them get approved for a home loan. These types of loans are available to borrowers whose income-qualifying circumstances are particularly unusual.

A Non-QM loan may be utilized for new home purchases, refinances, investment properties, or second homes.

Who Can Take Advantage of a Non-QM Loan?

A non-QM loan can make homeownership possible for borrowers who can afford a mortgage but have a unique financial circumstance that makes obtaining a qualifying mortgage challenging.

Non-QM loans fill the gap for self-employed people who have low typical income or have had trouble getting a qualified mortgage loan because of credit problems. Non-QM loans have guidelines for underwriting that let the lender see the “bigger picture” of your financial history. This enables the lender to determine a borrower’s ability to pay back the loan from a slightly different perspective than usual.

A non-qm is advantageous for the following individuals:

• Self-employed people;
• Foreign nationals;
• Real Estate Investors;
• Borrowers with substantial assets;
• Borrowers with limited credit.

Advantages of a Non-QM Loan

• Help borrowers obtain a mortgage if they would not otherwise qualify;
• Provide more flexible terms;
• Use alternate evidence of income, such as bank statements.

Disadvantages of a Non-QM Loan

• Higher interest rate;
• Requires a substantial down payment;
• Limited availability.

Non-QM loans are more expensive upfront and throughout the life of the loan than conventional mortgages. Due to the extra cost of points and fees that frequently accompany a non-QM mortgage, you will likely incur higher closing expenses and have a much higher interest rate than with a conventional mortgage.

Apply For an Auburn Washington Non-QM Loan

A Capital Home Mortgage loan officer can assist you in determining which of our non-QM mortgage options may be optimal for your specific financial circumstances by assisting you in identifying your goals. Call (360) 474-5656 to get started now.