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Are you a self-employed borrower? Do you own your own business, and have maybe struggled to obtain financing? If you’ve experienced difficulty trying to do so, it might be best to try and benefit from a non-qualifying mortgage (non-QM) loan.

What is a non-QM loan?

A non-QM loan is any home loan that doesn’t meet the regular standards of a qualified mortgage. But, keep in mind that not every lender will offer this. NJ Lenders Corp. is, in fact, a non-QM lender, and they have more flexibility in the underwriting process to work with any borrower that other lenders might label as risky.

Who exactly can benefit from a non-QM loan?

  • Self-employed borrowers
  • Real estate investors
  • Foreign nationals
  • Prime borrowers
  • Near or non-prime borrowers
  • Borrowers with significant assets

The non-QM loan program will target credit-worthy borrowers who are self-employed, have non-traditional incomes, have assets and no income, or have had difficulty qualifying for a traditional mortgage. It can be used for rate-and-term refinances, cash-out refinances, or a new home purchase for owner-occupied, second homes, or investment homes.

Expected growth for non-QM loans in 2019

One of the bright spots for the mortgage industry in 2019 is the expected increase of non-QM loans. According to the Origination Solutions Survey from Altisource Portfolio Solutions, non-QM lending could see a surge of 400% in 2019, and was deemed one of the most promising market opportunities by more than 200 “decision makers” in the mortgage origination business.

The program is designed to help show alternate methods of income verification, and borrowers will be able to do so by providing full documentation, one-year tax return program, bank state program (6 or 12 months), and asset depletion/asset qualification.

Interested in a non-QM loan?

Not every mortgage business out there will offer this programs to their borrowers, but NJ Lenders Corp. does. If you’re self-employed and have struggled to obtain financing, please feel free to reach out to one of our loan officers, and they’d be happy to go over all your options to move forward with a non-QM loan.