When should I consider a Non-QM Lender in California?

If your income history is messy or you’ve had issues with your credit score in the past, you’ll have a more challenging time getting approved for a mortgage in California. In that situation, getting a non-qualified mortgage, or non-QM loan for short, might be the best option. Here, we’ll break down how a non-QM loan works, how you can qualify for a non-QM loan, and show you when to consider getting one.

What is a Non-QM Loan?

First of all, what is a non-QM loan? The primary purpose of non-QM loans is to help home buyers who can’t meet the strict requirements of qualifying mortgages. For example, if you are self-employed or don’t meet the income verification requirements, getting a non-QM loan by Nuline Funding might be the best choice. 

You’ll better understand how non-QM loans work by looking at a qualifying loan’s criteria. The requirements to qualify for a traditional mortgage are listed below:

  • Your DTI must be 43% or less

  • Your income must be verifiable

  • The loan can’t have risky features such as, balloon payment, interest-only payment, or a negative amortization

  • Points and fees on your loan are less than or equal to 3%

  • Your loan term must be 30 years or less

If you can’t meet all the requirements mentioned, you should consider getting a non-QM loan in Woodland Hills, CA

What are the Benefits of non-QM Loans?

One of the major benefits of getting a non-QM loan is that they give borrowers who can’t qualify for traditional loans an opportunity to own a home.

This kind of loan may also require less formal documentation than other loans. Non-QM lenders usually won’t need things like an employment verification letter, W-2s, or tax returns on these loans. They also offer more flexible terms, like 40-year loans and balloon payment options, which aren’t available in traditional loans. 

Should I Get a Non-QM Loan in California?

A non-QM loan is a great choice when you have the money to pay monthly loan payments on time but can’t get a qualifying mortgage. Non-QM loans are an excellent option for self-employed borrowers, property investors, or others with poor credit scores or nontraditional incomes.

If you’ve decided that a non-QM loan is a suitable choice, get in touch with us at Nuline Funding, your mortgage advisor in Woodland Hills, CA, to help you get started.

 


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.