NON-QUALIFIED LOANS

A relatively newer type of product to the market, the Non-QM loan most closely resembles the Alt-A or Sub-Prime loan of the past.  Not nearly as aggressive as the loans that led us to the Great Recession of 2008, Non-QM do however have their place.  Borrowers must still prove their Ability to Repay (ATR) the loan, but the lenders offering this type of product will accept "alternative" documentation such as 12-24 months bank statements showing cash-flow; lots of assets to prove ability to repay with depleting those assets monthly; etc.

​Resembles the Alt-A or Sub-Prime loans of the past

​Based on borrower’s ability to repay the loan

​Alternative documentation allowed