Non-QM Lending Pro's and Con's

[Miles Fulton]

Hello All,

As I learn more about Non-QM and the Investor options available from these lenders my curiosity increases for a few reasons. Other forums on here (that I've seen) have not been positive. It seems like a good option and some of the companies that offer it have additional "investor" focused programs (Bank statement and cash flow based mortgage and jumbo loans, solid cash out refi programs). If you have experience with Non-QM, what was the downside/turn-off and what are the advantages? What other methods do you prefer? Any and all info appreciated! 

[Nick Belsky]

@Ned Carey

Non-QM are non-qualified mortgages. Typically, they are loans that act like residential loans but cater to individuals and businesses who are purchasing or refinancing residential properties. DSCR, Asset Depletion, and Bank Statement/1099 loans are the most common loan types. These loans are NOT backed by fannie/freddie although most lenders will follow the guides to an extent. They are more flexible for folks who are self-employed, have high net worth, or are investors.

Cheers!