Non-Qualified Mortgages (Non-QM)We believe there is an underserved market of borrowers who deserve credit but do not fit in the conventional box of traditional mortgages. At IND Mortgage LLC, these borrowers have a partner who is willing to understand the complexities of their needs. We work with several lenders and investors who offer offer financial solutions to meet these challenges. Options are available for both owner occupied and non-owner occupied residential properties. We also have options for for income-producing commercial properties, including multi-family, mixed-use, office and retail buildings.
Borrowers who can benefit
Non-QM loans create lending opportunities for non-traditional borrowers, such as...
- Real estate investors
- Self-employed or "gig" workers
Lenders must be able to determine a borrower's ability to repay. Traditional documentation to determine income includes pay stubs, W-2s and tax returns. Non-QM loans allow for alternative income documentation such as bank statements with regular deposits, P&L statement prepared by a CPA.
Higher Interest Rates
Since Non-QM loans are not backed by the major mortgage agencies (Fannie Mae, Freddie Mac) or by goverment agencies (FHA, USDA, VA), the lender takes on more risk, and commonly assesses higher interest rates.
Common Types of Non-QM Loans
- Bank Statement Loans reviews for deposits. Often 12-24 months are required. Some lenders require as little as 2 months.
- Debt Service Coverage Ratio Loans are for investment properties only. The loan is qualified soley on the rental income of the subject property. Most lenders want the rent to cover the monthly expense 0.75-1.00x. Some lenders do not have a coverage criteria.
- Asset Depletion Loans allow you to use liquid assets as collateral to secure a mortgage without needing to rely on income. Lenders approve the loan under the assumption that they may seixe your assetst to repay the loan.