Non-qualified mortgages or non-QM

About non-QM loans

The Bank Statement Mortgage Loans are the most popular, but the runner up is the Investor Cash Flow (ICF) or Debt Service Coverage Ratio (DSCR). This allows someone to buy an investment property by putting at least 20% down on a residential property without verifying the income or debts of the buyer. So we use the income of the property, instead of the income of the owner. Just like a commercial mortgage.

Why consider a non-QM loan?

Non-QM loans allow you to use assets or money in investments without touching those funds. We have a calculation that gives us an income amount based on the amount you have invested, and you don’t have to have a job or other steady source of income. The key for all of these is the Ability to Repay (ATR). Foreign National Mortgage Loans also fall under Non-QM. There are many other variations too. Bad credit, one day out of bankruptcy, one day out of foreclosure, and more.