Non-Qualified Mortgages are loans that generally do not meet the standards for the qualification for a mortgage. These types of mortgage loans allow you to qualify based on alternative approaches and use non-traditional methods of income and assets verification to help a borrower get approved for a home loan. These types of loans are for borrowers with unique qualifying situations and normally have a higher interest rate.
Benefits of a Non-QM Mortgage
- Underwriting flexibility
- No income verification program. In some cases, flexible credit scores with compensating factors
- Can potentially qualify with only bank statements or P&L
- In some cases, owner occupied and investors can qualify
When it comes to credit, more information generally means more consumer empowerment. That’s why we’re excited to introduce a new education video series from FICO called Understanding Your Credit.
Credit can be confusing and complex. We’ve created these four initial short videos to help you better understand FICO® Score basics.
Credit reports are the foundation of FICO® Scores, but what are they exactly? Watch this video to find out which information on credit reports does and doesn’t impact FICO® Scores.
Every day, thousands of U.S. lenders use FICO® Scores to make more well-informed, credit-granting decisions. What does that mean? Why is it important to understand how lenders use them? This video takes a look at what a FICO® Score is and why it matters to consumers and lenders alike. Watch it to learn how FICO® Scores streamline the lending process, making it faster and fairer.
Whether applying for a credit card, mortgage, or auto loan, there’s a good chance the lender is using FICO® Scores to help make their approval decision. The good news is, FICO® Scores are ultimately in the individual’s hands — they’re based on credit habits and behaviors. That’s why understanding what goes into FICO® Scores is a vital part of credit health. Watch this video to learn the five key categories that factor into FICO® Scores.