Are you in a situation where you earn an unconventional form of income or perhaps have a substandard credit score, but are interested in owning your own home? If this situation applies to you, you may still be able to qualify for a mortgage with a non-QM loan, or a non-qualified mortgage, which allows a borrower to qualify for a loan by using alternative application methods. If you are curious about buying a home and using a non-QM mortgage to finance the purchase in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today. Our loan specialists can help you get a better understanding of the financing process.
Essential Information About Non-QM Mortgages
A non-QM mortgage helps borrowers who may have unconventional financial circumstances acquire a home loan, and do not meet the specific guidelines set by the Consumer Financial Protection Bureau in order to be classified as a qualified mortgage. Non-QM mortgages offer alternative requirements that are different from conventional loans, and are not based solely on credit score and other typical loan requirements. With qualified mortgages, lenders will document a borrower’s employment status, income, and credit information, and loans cannot be considered qualified if they include riskier payment features. Non-QM mortgages do not have set requirements, however, borrowers who receive them usually have a higher average debt-to-income ratio, a credit score of around 760, and are able to make a down payment of approximately 20%.
The Benefits of a Non-QM Mortgage
Non-qualified mortgages offer several advantages to many different types of borrowers. Self-employed borrowers, both prime and non-prime borrowers, foreign nationals and real estate investors most commonly benefit from non-QM mortgages. These types of loans make it easier for people who are self-employed or who may have untraditional forms of income because they allow borrowers to provide alternative forms of documentation. Additionally, non-QM loans make it possible for borrowers that have past financial issues like bankruptcy and borrowers who may have a less than ideal credit score qualify for a loan because the credit requirements tend to be less stringent with this type of loan. Also, with non-QM mortgages there are several fixed and adjustable rates available.
Get Assistance Understanding Non-Qualified Mortgages
If you are a borrower who has unique financial circumstances and are interested in purchasing a home, but perhaps unable to qualify for a conventional style loan, a non-QM mortgage could help you purchase your ideal property. If you are looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can help. Our loan specialists can work closely with you to find the best home financing option for your situation. Contact our office today for a consultation and learn more about obtaining a non-qualified mortgage.