Lending Place


Here are some key features of non-QM loans:

  1. Flexible underwriting: Unlike conventional loans, non-QM lenders use flexible underwriting criteria that take into account the borrower’s whole financial picture, including assets, income, and credit history.
  2. Non-standard documentation: Non-QM loans may require non-standard documentation, such as bank statements, asset statements, or letters of explanation, to verify income and assets.
  3. Alternative income sources: Non-QM lenders may consider alternative income sources, such as rental income, self-employment income, or investment income, that traditional lenders may not consider.
  4. Higher interest rates: Non-QM loans typically have higher interest rates than conventional loans, as lenders assume more risk by lending to borrowers who don’t meet the strict requirements of GSEs.
  5. Shorter loan terms: Non-QM loans may have shorter loan terms, such as 15 or 20 years, instead of the traditional 30-year term, which can help borrowers pay off their loan faster.

Non-QM loans can be a good option for borrowers who have unique financial situations, such as self-employed individuals or those with fluctuating income. However, they may not be the best option for everyone, as they often come with higher interest rates and stricter terms. It’s important to carefully consider all loan options and work with a trusted lender to find the right loan for your needs.

Articles are brought to you by LendingPlace Mortgage Brokerage located in Los Angeles California. LendingPlace is Licensed in both California and Florida and can help with both Conventional and Non-Conventional Mortgage Loans. Information was obtained by a third party source and deemed reliable, but have not confirmed.