Non-QM Loans

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Designed for self-employed or small business owning borrowers that may have non-traditional income documentation. Vice tax returns, lenders may evaluate bank statements to determine income and Ability to Repay.

Non-conforming loans that exceed traditional loan limits set by Fannie Mae and Freddie Mac. These are often used for high-value properties and borrowers who need larger loan amounts. The maximum amount for a conforming loan in 2023 is $726,200 in most counties. 

For a specified period of time, these loans offer payments on the interest-only portion of a loan, usually for 5 or 10 years. During the interest-only period, monthly payments are lower compared to paying both principal and interest. After the interest-only period ends, the loan typically converts into a fully amortizing loan, requiring a larger monthly principal and interest payment. 

Evaluating the income-generating potential of a property being financed, DSCR loans are  popular commercial real estate loans with  investors. One of the requirements is that the DSCR is that the property generates enough income to cover the loan payments. 

Allows for 1099 self-employed and independent contract workers who have a difficult time qualifying for traditional loan programs. Instead of using W-2s, 1099s are used for qualifying.