Line Q
Non-QM
For income that is real but does not fit a box. Judged on documentation the agencies will not read, at a price that reflects it.
- Means
- Outside the Qualified Mortgage definition
- Documents income by
- Bank statements, assets, or property rent
- Still requires
- A proper ability to repay assessment
What the program actually says
Non-QM does not mean unregulated. It means the loan does not meet the Consumer Financial Protection Bureau definition of a Qualified Mortgage, which is a safe harbour for lenders, not a licence requirement for borrowers.
The Ability to Repay rule in Regulation Z still applies. A lender must still make a reasonable, good faith determination that you can repay. Any product sold as no checks is not this.
The usual documentation routes are bank statement programs for the self employed, asset depletion for borrowers with capital but little income on paper, and DSCR for investment property judged on the rent it produces.
Because the loan is held or sold privately, pricing and terms are lender specific and typically carry a premium over agency programs.
See what the payment does
Illustrative figures only. What that means.
Principal and interest, worked from numbers you choose. It carries no program specific mortgage insurance, fee or premium, because those depend on your file rather than on arithmetic.
10.0% of the price
A worked number, not a quote or an offer.
Principal and interest, monthly
$0
Property tax, homeowners insurance, any mortgage insurance and any HOA dues sit on top of this figure. They vary far too much by address for a national number to mean anything.
- Loan amount
- $0
- Loan to value
- 0%
- Total interest over the term
- $0
- Total of payments
- $0
Below 20% down, a conventional loan normally carries private mortgage insurance until you reach 20% equity. It is not in the figure above.