Types of Loans

Types of loans

• Non-QM
• FHA
• Conventional
• Bank statement
• HELOC
• Jumbo

Learn More About Non-QM Loans

Loan Officer Yoandra “Yoa” Lopez, with Reliable Mortgage, specializes in non-QM loans (Non-Qualified Mortgage), enabling her to assist a diverse range of clients who may not conform to the traditional profile for qualified mortgages.

Non-QM loans are a category of mortgage loans that do not meet the criteria for Qualified Mortgages (QM) as defined by the Consumer Financial Protection Bureau (CFPB). QM loans generally adhere to certain standards designed to ensure borrowers' ability to repay, and they offer lenders certain legal protections.

Non-QM loans, on the other hand, may have features that make them outside the standard QM criteria. These loans are often considered riskier, and as a result, they may have different underwriting requirements. Some characteristics of non-QM loans include:

1. Alternative Documentation: Non-QM loans may allow alternative forms of documentation for income verification, such as bank statements or asset-based income.
2. Higher Debt-to-Income Ratios: QM loans typically have strict limits on the borrower's debt-to-income ratio. Non-QM loans may allow higher ratios.
3. Interest-Only Payments: Some non-QM loans may allow borrowers to make interest-only payments for a certain period.
4. Non-Traditional Property Types: Non-QM loans may be used for properties that don't conform to traditional mortgage standards, such as investment properties or certain types of commercial real estate.

It's important to note that while non-QM loans provide flexibility for certain borrowers, they also come with increased risk, both for lenders and borrowers.