It can be hard to qualify for a traditional loan these days, especially if you don't lead a traditional life. If you don'€™t have a perfect credit score or possess an irregular income but still wish to purchase a home, non-QM mortgages could work for you. 

What is a non-qm mortgage and how is it different from a traditional mortgage?

There are many reasons an individual may be unable to qualify for a traditional loan. It is important for borrowers to be able to provide lenders with detailed documentation of their income, employment status, and credit history in order to prove that they are able to repay their mortgage. Not everyone has all of this documentation, or at least documentation that can convince a lender that they can afford the loan they'€™re applying for. That'€™s when non-qualified mortgages come into play. Non-qualified mortgages allow for loans that don'€™t have the same requirements as the typical mortgage loan. Various interest-only mortgages and long-term loans are available. 

Is a non-qualifying mortgage right for you?

Knowing whether or not a non-qualifying mortgage is the right choice for you requires some research and consideration. It is important that you exercise extreme caution. Although they'€™re riskier than traditional loans, they'€™re a viable alternative if you don'€™t qualify for other options. Again, be careful and do your research.  If you have a lot of debt, imperfect credit, or a variable income, a non-qualifying mortgage can be a great option. You might like it because of the lack of documentation required, such as not having to provide copies of your W2 tax returns or W2s like qualifying mortgages will. Another benefit is that they are usually closed in a month at most. However, it'€™s important to note the risk of these loans. They do tend to have a higher interest rate than qualified mortgages. One major risk is that you may have difficulty paying off your mortgage loan down the road. While these loans can be a great alternative if they'€™re something you'€™re able to afford, it is always important to assess the risk involved in making a decision.