What is a Non-QM Loan?
Non-Qualified Mortgage (Non-QM) loans are typically for borrowers with unique circumstances and for those who don’t fit the normal “qualified-mortgage box”. Often these loans are for borrowers with non-traditional circumstances like fluctuating income, self-employed independent business owners, contractors, entrepreneurs, artists, etc.
Benefits of Non-QM Loan
It is not mandatory for a borrower to meet the minimum waiting period after bankruptcy.
Non-QM loans do not have a waiting period.
When faced with bankruptcy or foreclosure you can still receive a loan.
The customers should know that they can pay interest only on their initial loan and later make a more substantial payment using the principle.
Qualification methods vary from the standard process and product terms may also vary including but not limited to Interest Only loans.