NonQM Loans

What is a NonQM Loan?

Any non-traditional loan product available in the marketplace is generally referred to as a "Non-QM" loan.

These loans include those attached to properties that don't qualify for conventional financing such as non-warrantable condos, homes with excessive acreage or unique features, and condotels.  In addition, Non-QM loans also cover borrowers with unique finances.  Loans using bank statements for income, or for borrowers recovering from recent derogatory credit events like bankruptcy or foreclosure also fall under the Non-QM umbrella.

These loans are a tremendous options for anyone that falls into an "outside the box" scenario that more traditional lending services.

NonQM Mortgage FAQ's

Are NonQM Loans SubPrime Loans?

Non-QM loans don't fit the traditional mortgage box, but when compared to what most people remember as "Subprime loans", the products available in the Non-QM spectrum today are designed to meet unique borrower needs, NOT to lower the standards of a loan approval.

Unlike the subprime loans of the early-mid 2000s, today's non-QM loans avoid layering risk.  For example, if a client has lower FICO scores, they'll often be capped in how much they can borrow.  If they don't have a large down payment or equity in their home, they'll likely need a good credit score to qualify for today's products.

What Makes a Loan "Non-QM"?

A number of factors can make a loan fall under the Non-QM umbrella.  Typically, anything underwritten outside of conventional or standard government (FHA, VA, USDA) guidelines is considered Non-QM.

Loans where a borrower qualifies using bank statements for income are common Non-QM programs.  Loans for unique properties like those with excessive acreage, non-warrantable condos, or condotels are other popular Non-QM loans.

Others include loans to Foreign Nationals, loans for borrowers with recent bankruptcy or foreclosures, and Jumbo loans exceeding conventional loan limits.

How Do I Know If I Qualify For A Non-QM Loan?

Unlike conventional or government loans, there isn't an automated system that can give an approval on a non-QM loan.  To see if you qualify, it's best to talk with your MasonMac loan officer to determine if your scenario meets investor guidelines.

We'll Help You Every Step Of The Way

mason-mcduffie-logo

 

Mason-McDuffie Mortgage

12647 Alcosta Boulevard
Suite 300
San Ramon CA. 94583

Phone: 925-242-4400
Fax: 866-743-0260
Toll-Free: 877-275-6662
info@masonmac.com

Licensing

Licensed by The Department of Financial Protection and Innovation
under the California Residential Mortgage Lending Act. NMLS# 1141
NMLS Consumer Access Site

Not  a  commitment  to  lend. Rates  and  terms  subject  to  change  without  notice. Licensed by The Department of Financial Protection and Innovation under  the  California  Residential  Mortgage Act  No. 4130968; AL  #22653; AR  #32700; Colorado regulated by the Division of Real Estate; DE #019623; FL #MLD819; Georgia Residential Mortgage Licensee #20924; ID #MBL-5861; Kansas Licensed Mortgage Company #MC.0025601; KY: #MC701698; MD: #16927; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the NJ Department of Banking and Insurance; NC: L-152867; NV: #3681; OK: #ML012358; Licensed by the Oregon Division of Financial Regulation #ML-3808; PA: #37008; TN: #112513; Licensed by the Virginia State Corporation Commission #MC-5579, WV: #ML-31523/MB31759, WY: #3964. NMLS #1141. www.nmlsconsumeraccess.org

CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.

ehl