How You Can Benefit from a Non-QM / Non-Agency Loan


As a borrower, suppose you do not meet the necessary qualifications for a traditional loan due to a lower credit score, tax returns that do not accurately represent your income, or you may have a history of bankruptcy or foreclosure. In that case, borrowers may benefit from a Non-QM (Non-Qualified Mortgage) Loan.

Borrowers seek Non-Qualified Mortgage (Non-QM) loans when they are unable to qualify for traditional loan products. The NON-QM Product opens a significant opportunity door to qualify your non-traditional borrowers. Non-QM loans can benefit clients who are real estate investors, entrepreneurs, and more that prefer interest-only payments.

How Does a Non-QM Loan Work?

Because these loans are dependent on collateral, Non-QM loans are often known as leverage loans. Unlike traditional loans, there is more flexibility when underwriting the loan.

Other benefits of Non-QM loans are:

  • A credit score as low as 600 is allowed
  • No personal income calculations are required
  • Job history is (sometimes) not required
  • The required down payment can be as low as 10%
  • In some cases, no reserves are required
  • In some cases, reserve requirements can be met by Cash-Out proceeds

Who Would Benefit from a Leverage/Non-QM Loan?

Borrowers may benefit from a Non-QM loan if they:

  • Are self-employed
  • Are a real estate investor
  • Are a retiree looking at purchasing a vacation home
  • Are an owner of a small to midsize business
  • Are looking for interest-only payments
  • Have experienced bankruptcy, foreclosure, or a short sale

Don’t hesitate to contact one of our lending professionals if you fall into one of these categories to see if you qualify for a Leverage/Non-QM loan.

Prime Choice Funding has a variety of loan products to help borrowers with any situation! If you are planning to purchase a new home or refinance your existing home, we can help with your homeownership goals, call us at (877) 787-7463 or click here to get started.