If you have difficulty qualifying for a conventional mortgage loan, you are not alone. QM guidelines have prevented about 20 percent of prospective homebuyers from entering the market, simply because they do not qualify under these new standards. As a result, these borrowers must consider non-QM loans.
Prior to the financial crisis, high-income borrowers and the self-employed had a multitude of options for attaining a mortgage loan. These options included interest-only loans, as well as loans with minimal documentation. The QM regulatory reforms have eliminated these types of loans; they are no longer offered by banks and conventional lenders.
Non-QM lenders have emerged to cater to the many borrowers who cannot get a QM loan. Non-QM loans are not necessarily high risk. Working with a reputable lender like Athas Capital Group provides a structured and transparent lending program that meets your needs. Non-QM loans often have strong credit attributes, such as borrowers with sizeable income and high credit scores.
The concern surrounding non-QM loans pertains to poor-credit and low-income borrowers. This demographic was targeted by predatory lenders, and this largely contributed to the financial crisis, as many of these borrowers had to default on their loans. No matter your income or credit score, it’s important to choose your non-QM lender wisely. Only work with a non-QM lender that has a positive reputation and demonstrates honesty and integrity.