Non-QM Loans
Traditional mortgage guidelines don’t fit every borrower. HomeSpring Mortgage offers non-QM loan programs throughout South Carolina, including the Charleston metro area, with alternative qualification options for borrowers who don’t meet conventional requirements.
Bank Statement Loans
Bank statement loans are sometimes referred to as “self-employment mortgages.” They allow someone to borrow money without the documentation required by traditional lenders, like tax returns and W2s.
Foreign national loans
Foreign national mortgage programs are designed for eligible borrowers who are not U.S. citizens or permanent residents and want to purchase property in the United States. Qualification requirements vary by program.
Interest only
loans
When you take out a traditional loan, the monthly payments that you make go toward both your loan balance and interest costs. If you keep up with interest charges, you will gradually pay down the debt you owe.
Asset based
loans
An asset-based loan is a business loan that is based on a company's assets, usually inventory and accounts receivable, being used as collateral. You use your current financial revenue as leverage for borrowing.
Recent credit event loans
If you have a recent event that has damaged your credit score, it can be difficult to secure a loan. And even if you can borrow, the interest rate will typically be much higher due to the event.
Medical Professional Loans
Becoming a physician is a tough road that takes a lot of sacrifices. Not only does it require a large amount of your time and effort; it is monetarily draining. If you are left with a lot of student loan debt weighing you down, you do have options to help.
Unfortunately, not all potential homebuyers have the type of credit rating or history necessary to qualify for a loan. Non-QM lenders offer them a solution to their mortgage issues. Non-QM lenders don’t have the same rigorous standards and regulations that traditional lenders do. Top non-QM lenders can typically find solutions where other mortgage lenders see roadblocks. They offer a variety of loans based on different measures like your assets and your ability to repay, instead of the traditional standards used.
Often, top non-QM lenders can find a mortgage loan to suit your needs quickly, because they don’t require the standard documents. For instance, a bank statement loan only takes your bank statements to qualify. Yes, it really can be that easy! At HomeSpring Mortgage, we offer the best non-traditional loans in the industry. Our mission is to get you approved and into the home of your dreams!
Not everyone has the luxury of a great credit rating or stellar credit history, but that does not mean that you can’t get a mortgage. Non-QM loans are available for people who don’t have the credentials necessary to qualify for traditional loans. What is a non-QM loan? It is a loan based on non-traditional factors like bank statements and assets instead of W-2 forms. Non-QM loans can also be quickly obtained as opposed to traditional ones!
Are you asking, “What is a non-QM loan, and can I qualify for one?” There is a good chance that you absolutely can. Non-QM loans don’t make you jump through hoops or dig through the extensive amount of documentation that is required for traditional loans. At HomeSpring Mortgage, we can find a loan for you, regardless of your credit rating or history. Contact us today!
Here are some things that a Non-QM loan is not
- A Non-QM loan is not a qualified mortgage and does not meet the standards set by the Consumer Financial Protection Bureau.
- Non-QM loans are not necessarily interest-only, although they may offer interest-only repayment terms.
- It is not a subprime mortgage – a subprime mortgage is a mortgage for borrowers with well-below-average credit scores.
- It is not a “stated-income” loan – stated-income loans did not require proof of the income amount that was stated on the loan application.
- Non-QM loans are not always the best choice for every borrower, and borrowers should carefully consider the terms and requirements of a non-QM loan before deciding whether to apply.
- Non-QM loans are not backed by government agencies such as Fannie Mae, Freddie Mac, the Department of Veterans Affairs, the U.S. Department of Agriculture, or the Federal Housing Administration.
What Is a Non-QM Loan?
A non-QM loan is a mortgage that doesn’t meet qualified mortgage standards. These programs can use alternative ways to evaluate a borrower’s ability to repay, including eligible bank statements, assets, or other financial information, depending on the loan.
| A Non - QM Loan Is | A Non - QM Loan Is Not |
|---|---|
| A mortgage that doesn't meet qualified mortgage standards | A Qualified Mortgage |
| A loan that may use alternative income or asset documentation | A loan with no qualification or documentation requirements |
| Available with certain interest-only programs | Automatically an interest-only mortgage |
| An alternative to conventional mortgage financing | The same thing as a subprime mortgage |
| Available for borrowers with different financial profiles | Automatically the right option for every borrower |
| A mortgage with its own underwriting requirements | A stated-income loan with no verification of income |
| Separate from government-backed mortgage programs | An FHA, VA, or USDA loan |
South Carolina's Top Non-QM Mortgage Lenders
Whether you’re buying a home in Charleston, investing in South Carolina real estate, or looking for an alternative to conventional mortgage qualification elsewhere in the state, the right loan program depends on your individual financial profile.
Our local non-QM mortgage company can help you review available non-QM options and determine which programs may fit your circumstances.
Frequently Asked Questions
Non-QM mortgages can help borrowers whose income, assets, credit history, or other financial circumstances don’t fit conventional mortgage guidelines. This can include self-employed borrowers, real estate investors, medical professionals, and borrowers recovering from a recent credit event.
Yes. Certain non-QM programs are designed for independent contractors and may use alternative income documentation, such as eligible bank statements, instead of relying solely on traditional tax returns and W-2s.
Some non-QM programs are available to borrowers with recent credit events. Eligibility depends on the type and timing of the event, along with the specific loan program requirements.
Some non-QM mortgage programs can be used for investment properties. The available options and qualification requirements depend on the property, borrower, and financing.
Potentially. Non-QM programs can offer alternative ways to document income for borrowers whose earnings fluctuate. The appropriate documentation depends on the loan program and the borrower’s financial situation.
Credit requirements vary by non-QM program and lender. Your credit history is one factor considered when determining eligibility, along with income, assets, the property, and other loan-specific requirements.
Down payment requirements vary by loan program and borrower. The amount can depend on factors such as the property, loan type, credit profile, and other qualification criteria.
Yes, certain non-QM programs can be used for refinancing. Whether a particular option is available depends on your financial situation, property, existing mortgage, and the loan program requirements.
Start by discussing your financial situation and mortgage goals with a non-QM lender. HomeSpring Mortgage can review your circumstances, explain available programs, and help you determine what documentation and qualifications apply.