Non-QM

Non QM simply stands for "Non Qualified Mortgage". They're loans backed by other large investment companies. Non QM Loans fill niches to help self employed borrowers, or someone who recently had a bankruptcy/foreclosure, or a borrower who can show proof of Assets but not Income. Non QM Loans are good alternatives when Conventional or Government Loans are not available.

These loans are very popular for self employed borrowers. We utilize the most recent 12-24 months of business or personal bank statements instead of using the borrowers tax returns.

Debt-Service Credit Ratio Loans are beneficial for investors purchasing or re-financing long term rental properties.  The debt-service coverage ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. 

These loans come in handy for a borrower who cannot document enough income to prove their ability to repay. Instead of income we use documented assets. In general the borrower must show enough assets to cover the loan amount, monthly debt for 24 months, and 12 months reserves .