Non-QM Home Loans Bridge the Gap

Almost everyone (94%) agrees that owning a home is part of the idealized American Dream. That said, almost half of Americans (51%) who don’t already own a home think that they’ll never be able to afford one.

If you’re among that statistic, then you may be facing non-traditional financial situations that are preventing you from getting the home of your dreams. Many Americans require funding, but traditional lenders usually want buyers to fit into specific financial boxes. Traditional lenders usually want buyers with:

• Good credit scores
• Significant down payments
• A steady, provable income
• A reputable employer
• A low debt-to-income ratio
• Provable citizenship

Some traditional lenders will work outside of these bounds, but for the most part, lenders will want you to fit into these boxes in order to get a reasonable rate on your home loan.

Thankfully, there are lenders who offer alternative solutions. Alternative income documentation loans, for instance, can help lenders get funding even if they don’t have traditional income streams or documentation. These types of loans are almost always backed up by the property’s underlying collateral. About half of these loans are classified as non-qualified, or non-QM, loans.

Non-QM Home Loans in 2024 and Beyond

The average person seeking to become a homeowner in 2024 isn’t a cookie cutter borrower. They don’t have outstanding credit, and many have non-traditional sources of income. Now, more than ever, Americans are having to work two jobs, get a side-hustle, or make ends meet in non-traditional ways. As a result, their access to traditional lenders is limited.

Thankfully, non-QM lenders can step in to fill the gap and help you obtain your homeownership dreams despite having a non-traditional situation. Non-QM lenders will work with you even if you’re facing the following types of situations:

• Foreign national
• Self-employed
• A lower credit score than traditional lenders like to see
• Retired
• You’re unable to meet the income documentation requirements for a qualified mortgage
• You’re attempting to invest in multiple units
• You want an interest-only payment option

Since these lenders offer more flexible terms and qualifications and take on more risk, you can expect to have to pay a little more for the loan. Interest rates may be slightly higher than with a traditional loan.

Here at Non-QM Home Loans, we can handle all your Alt-A and non-QM mortgage needs. We will help provide the financing you need to reach your goals of homeownership through multiple loan offerings, which includes loans specific to borrowers with a stated income, who are self-employed, who haven’t obtained citizenship yet, or with little to no documentation. We also offer Non-QM loans that are designed to focus on investment property, hard money situations, or HOA-litigation issues.

Once you get in touch with our agents, we’ll help you decide how much you can afford based on your financial situation and help you pre-qualify for your loan. Next, we’ll walk you through the application process and help your funding come through.

Check out our interactive home loan map to learn more about our loan requirements and your options based on your circumstances.