Are you interested in purchasing a home, but perhaps concerned that you may be unable to qualify for a loan because you have an untraditional source of income? Non-QM loans are intended to help people that have unique financial circumstances qualify for a mortgage based on alternative criteria for eligibility. If you are located in the areas of Palm Beach, Tri-County, or Broward County, Florida, and want to learn more about buying a property with a non-QM loan, CTC Mortgage can help. Read on to learn more about obtaining a home with a non-QM loan for self employed borrowers.

What Are Non-QM Loans For The Self Employed?

A non-QM loan helps a borrower who may have uncommon financial circumstances and who may not be able to meet the typical requirements needed to qualify for a traditional loan acquire a property. Traditional mortgages generally involve a lender evaluating factors such as a borrower’s income, employment status, credit history, etc. to determine if they are eligible for a home loan. This can often be problematic because it makes it much more difficult for self- employed individuals to get approved for funding with traditional loan options. Non-QM loans follow different guidelines than traditional loans to determine eligibility in that lending is not based solely on standard loan requirements like income and credit. Alternatively, non-QM loans, take other indicators into account in order to get an overall picture of a borrower’s financial situation for potential homebuyers that may have an atypical form of income. Even though non-QM loans do not have set eligibility requirements, they do typically require a down payment of twenty percent, a credit score of 760 or higher, and a debt-to-income ratio, (DTI), of 37 percent.

What Are The Benefits Of A Non-QM Mortgage?

Non-QM loans can offer several advantages for potential homeowners, including:

• They offer a variety of both adjustable and fixed rate options to help in making home ownership a possibility.
• They make it much easier for self-employed workers and people with non-traditional forms of income to qualify for a mortgage by allowing them to provide alternative forms of documentation to verify eligibility.
• Non-QM loans can benefit many different types of borrowers, including self-employed workers, real estate investors, both non-prime and prime borrowers, and foreign nationals.
• They have less restrictive credit requirements, making it more manageable for borrowers that have experienced past financial issues like foreclosure or bankruptcy to buy a home.

Becoming A Homeowner With A Non-QM Loan

If you are a self-employed individual or someone with a unconventional form of income and interested in purchasing a property with a non-QM loan in Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage today for a consultation.

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