In our post-pandemic society, many Americans have very different work lives than pre-2020. Many that worked full-time have scaled back to part-time work or contracting. Some left their corporate jobs to pursue entrepreneurship and opened small businesses. While these changes to the workforce have opened lots of doors for more flexible work, they’ve closed some doors for qualifying for traditional or government-backed mortgage loans. So, what’s the solution? Enter: non-QM loans.
Non-QM loans offer many benefits to those whose work situations mirror those outlined above. With many benefits and flexibilities, these loans are great for Americans with non-traditional levels of income. Keep reading to learn if a non-QM loan is right for you.
Many self-employed workers can take advantage of non-QM loans and the ability to qualify with business or personal bank statements instead of a traditional W-2 form. In addition, profit & loss statements prepared by a CPA or PTIN can be submitted to qualify.
Borrowers Without a Social Security Number
For borrowers who live and work in the United States and have an individual tax identification number (ITIN) but no social security number, non-QM loan programs can help them achieve financing. In addition, no Visa is required for this program.
For those who do contract work or work in the larger gig economy, non-QM financing is available! Borrowers can submit traditional documentation like W-2's, paystubs and tax returns, but also have the option to qualify with gig income.
Real Estate Investors
Home investors looking to purchase additional properties can be a good fit for non-QM loans as some programs take rental income into consideration instead of traditional employment income.
Borrowers Facing Financial Woes
Oftentimes, a mistake from the past can prevent access to mortgage financing in the future. For borrowers looking to get into a home again after a credit score has dropped due to bankruptcy, foreclosure or a short sale, non-QM loans can offer the flexibility they need. In addition, no seasoning is required on the credit event!
If you’re interested in talking more about whether a non-QM loan is right for you, reach out to one of our qualified loan originators today.