What "non-QM" means
A Qualified Mortgage (QM) meets federal Ability-to-Repay and QM rules set by the Consumer Financial Protection Bureau, and most FHA, VA, USDA and conventional loans fall into that group. A non-QM loan still requires the lender to make a reasonable, good-faith determination that you can repay, but it can document income or qualify a loan in ways that fall outside the standard QM rules.
Who non-QM is for
- Self-employed borrowers and business owners whose tax returns don't show their full income
- 1099 contractors and gig workers
- Real estate investors who want to qualify on a property's rent
- Borrowers with larger loan amounts or unique properties
- People with a recent credit event or who were turned down elsewhere
QM vs. non-QM at a glance
- Documentation: QM usually relies on tax returns and W-2s. Non-QM may use bank statements, 1099s, assets or rental income.
- Guidelines: QM follows agency rules. Non-QM guidelines are set by each lender, so they vary widely.
- Cost and terms: non-QM terms are often different from QM loans. I'll show you both side by side when you qualify for both.
Non-QM programs I help with
Other programs that may be available
Depending on the lender and your situation, programs that may be available include asset-based (asset depletion) loans, loans for foreign nationals, ITIN loans and interest-only options. Availability and guidelines change, so ask and I'll check what fits.
Why a mortgage broker? How lender choice helps →
Every loan is subject to credit approval, property eligibility and the lender's guidelines. Programs and terms change; I'll confirm what's available for your situation.
David J. Hutchison II, NMLS #63021 · NEXA Mortgage, LLC dba NEXA Lending, Company NMLS #1660690 · Equal Housing Opportunity. All loans subject to credit approval, property eligibility and lender guidelines. Not affiliated with VA, HUD/FHA, USDA, the Department of Defense or any government agency.