These days, perhaps more than ever before, people are getting their income from entrepreneurship, investments, and a variety of other sources. The downside is that it can be difficult for those with a different financial picture to secure a home loan.
At Homeowners, we’re here to ease that difficulty with a suite of non-QM mortgage programs designed to accommodate the modern borrower.
What is a non-QM loan?
QM stands for “qualified mortgage.” When you add “non” to it, you might come away with the impression that you won’t be able to qualify for a mortgage. “Qualified” simply means the loan meets the Consumer Financial Protection Bureau’s “ability to repay” rule, which involves an analysis of your finances.
In some cases, your income can’t be verified by traditional means (like a tax form from your employer) or some other aspect of your financial situation makes it harder for lenders to determine your ability to repay a loan. If this sounds like you, the good news is you may still be able to get a mortgage!
These non-QM home loan programs could be the ticket for unconventional income situations:
- Self-employed borrowers and those with other types of unconventional income: our Bank Statement loans let you qualify with your bank statements instead of W-2 forms.
- Are you retired or between jobs? You don’t have to pay cash for your home. With our Asset Qualifier loans, you can get a mortgage based on your liquid assets.
- If you’re a business owner, our 12-Month P&L loans let you qualify for a personal mortgage with your business’ most recent profit-and-loss statement.
- Property investors: our Debt Service Coverage Ratio (DSCR) loans let you grow your real estate portfolio and finance properties based on your rental income, not your personal income.
These non-QM home loan programs are designed for those with other borrowing needs and financial challenges:
- Pay less at the beginning of your loan and ease into homeownership with our Interest Only loans that allow you to delay the principal portion of your monthly payment.
- Looking for the most affordable mortgage? With our 40-Year Amortization loans, you can take more time to pay off your home and pay less each month for principal and interest.
- If you have a recent foreclosure or bankruptcy, you may be able to get a home loan again – and sooner than you think – with our Credit Seasoning loans.
- Are you buying a non-warrantable condo? Our dedicated condo team may have the right loan products for established projects, new projects, condo conversions, and condotels.
Remember: if you need a mortgage, you should never pass on applying because you think you won’t be able to qualify. Always talk to a Homeowners Licensed Mortgage Professional first. Whatever your personal situation is, if there’s a financing solution that can possibly help you get a home loan, we will do our best to find it!
Program requirements may vary. Additional restrictions and qualifying criteria may apply. Products may be available from an entity with whom Homeowners Financial Group has a contractual relationship.