What is a Non-QM loan?

QM stands for Qualified Mortgage and a Non-QM loan allows borrowers the opportunity of homeownership when they don’t meet the requirements set by the Fannie Mae or Freddie Mac. Non-QM loans allow borrowers to have Debt-to-Income (DTI) ratios above the traditional 43% maximum along with allowing them to utilize alternative income documentation such as: Bank statements, Profit and Loss statements and Assets as well as traditional W2’s, Tax returns and Paycheck stubs to provide an accurate depiction of the borrower’s income. Non-QM mortgages may be an option for borrowers with a less than perfect credit history as well.

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