A Non-QM (Non-Qualified Mortgage) is a home loan that doesn't meet the standard requirements for a Qualified Mortgage, making it suitable for borrowers with unique financial situations, such as self-employed individuals or those with high debt-to-income ratios. 

A Non-QM (Non-Qualified Mortgage) differs from a traditional mortgage primarily in its underwriting standards and eligibility criteria. Traditional mortgages, also known as Qualified Mortgages (QM), adhere to strict guidelines set by regulatory agencies, such as debt-to-income (DTI) ratios and proof of consistent income. In contrast, Non-QM mortgages offer more flexible requirements, allowing for alternative income documentation, higher DTI ratios, and varied credit profiles. This flexibility makes Non-QM loans ideal for borrowers who might not fit the conventional criteria, such as self-employed individuals or those with irregular income streams.

The benefits of a Non-QM (Non-Qualified Mortgage) include:

1. Flexible Qualification Criteria: Non-QM mortgages cater to borrowers who may not meet the strict requirements of traditional loans, such as self-employed individuals, those with fluctuating or non-traditional income, and those with lower credit scores.
2. Alternative Documentation: These loans often allow for alternative forms of income verification, such as bank statements or asset-based qualifications, rather than relying solely on W-2s or tax returns.
3. Diverse Loan Options: Non-QM loans provide a variety of terms and structures, including interest-only payments and longer loan terms, giving borrowers more options to tailor their mortgage to their specific financial needs.
4. Potential for Larger Loan Amounts: Non-QM loans can accommodate larger loan sizes than conventional mortgages, which can be beneficial for investors or individuals purchasing high-value properties.

To apply for a Non-QM mortgage with Creare Capital Lending, begin by connecting with our team of specialists who are experts in Non-QM financing. We'll guide you through gathering the necessary alternative documentation, such as bank statements or profit and loss statements, to verify your income and assets. Submit your application, and we'll assess your eligibility based on our flexible guidelines. Once approved, we'll help you review the loan terms and move smoothly through the closing process to secure your mortgage.

To qualify for a DSCR loan, your property’s rental income must be sufficient to cover the monthly loan payments. We typically look for a DSCR ratio of at least 1.0, meaning the property generates enough income to cover its debt obligations. Additional factors like credit score and property type may also be considered.

Eligibility is assessed based on alternative documentation methods. For instance, self-employed borrowers may use bank statements to verify income, while real estate investors can qualify based on the cash flow from rental properties. Our experienced underwriters evaluate each application on a case-by-case basis, allowing for more personalized assessments.

Hard money loans are non-QM (non-qualified mortgage) loans. Unlike conventional mortgages, which must meet strict underwriting requirements set by Fannie Mae and Freddie Mac; these high-risk loans don't have any such restrictions—and this means they can give you access to capital when other options aren't available.

Hard money loans provide quick access to funds, allowing investors to act fast in competitive markets. They are also less strict on credit requirements, making them ideal for those looking to finance properties that may not qualify for traditional loans.

Applying is easy! You can start the process by contacting one of our loan officers directly. We’ll help you gather the necessary documentation and guide you through the application process.