For example, agency loans usually look at a borrower’s tax return to verify income, but for entrepreneurs, this isn’t the most accurate reflection of their income stream. It permits those previously locked out of the market to enter. The primary benefit of non-QM loans is allowing for more types of income verification. Whereas non-QM loans move at the speed of the market.”

Caliber EVP David Schroeder highlights the differences between agency and non-QM loans saying, “Agency loans are government loans. Non-QM loans don’t conform to federal standards and restrictions and are not government-backed, so they can have greater flexibility. In response, non-QM loans were developed to allow everyone to have access to the American dream of homeownership. These standards prohibit some strong borrowers from obtaining loans due to their income sources or other limitations. While intended to provide consumer protection, the Act also introduced more rigid requirements for income verification. With the Dodd-Frank Act of 2010 came a new standard for qualifying mortgages.

We will also dispel some misconceptions about non-QM loans, so you can move forward with greater knowledge and confidence. We’ll help you understand the value non-QM loans can bring your clients. They appeal to entrepreneurs, those heavily invested in stock, and real estate investors who have been locked out of the market due to the nature of their income streams. These loans are especially suited to the current market. Notable within the new line of products is the array of non-qualified mortgage, or non-QM, loans. combine platforms, a wider range of loan products is now available to Caliber partners. Non-QM gives credit access to self-employed borrowers who may have been locked out of the market before.Īs industry giants Newrez and Caliber Home Loans, Inc. Non-QM gives you new opportunities to help you better serve your buyers and build your business.

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