How Do I Qualify for a Non-QM Mortgage Loan?

What is a Non-QM Loan?

A non-QM (non-qualified) loan doesn’t have the requirement to meet all of the typical standards set forth by the Consumer Financial Protection Bureau. By forgoing the standard requirements, you can take out a non-QM loan with a higher interest rate. You can get a non-QM mortgage for homes exceeding 30-year pay-off limits, interest-only payment loans, or a mortgage with negative amortization. Non-QM mortgage loans are helpful for people who can't meet the expectations of a qualified mortgage loan but want to be able to own a home.

Why Do I Need a Non-QM Loan?

The non-QM loan is an excellent option for those who are self-employed or freelancers. You work hard, but you may not have traditional pay stubs spanning the past two years. So instead of an employer W2, you provide bank statements for this loan requirement, and lenders consider the ebb and flow of your monthly expenditures. Since work can be sporadic month to month, this new home loan option provides flexibility with financial information and puts in “good faith” that you can pay back the mortgage.

Individuals with high debt or poor credit scores are also great candidates for the non-QM mortgage loan. To get approval for the loan, buyers may not need to provide all the information about their credit and debt, so there is less hassle in the application process and a greater opportunity for approval.

What Do I Need to Qualify for a Non-QM Loan?

To qualify for a non-QM mortgage, you will likely need to provide the following documents to your lender:

* Bank statements
* Tax records
* Proof of income
* Other documents show you can pay back your loan

How Cake Can Help with a Non-QM Mortgage Loan

When it comes to figuring out what a non-QM loan is and what you need to qualify for one, Cake can help. We are a mortgage lender who recognizes everyone has a unique story, and we are on your side to help you secure the loan you need for your new house.

Our application and qualification process is as simple as slicing cake. After reviewing your required loan bank statements and documents, our expert consultants work to find the best option for your loan. Once Cake begins working on your qualified loan documents, you can shop for your home and close in a quick time frame. We don't waste time on unnecessary process pieces; we get your loan closed fast. Call today to speak with one of our professionals about your new non-QM mortgage loan.