Non QM Loans

Are you self-employed or 1099/independent contractor and wondering if you qualify for a home loan? Well no need to worry or wonder, Babak has you covered.

B Squared Funding Home Loans understands that everyone has different financial needs. That’s why we offer Non QM Mortgage loans to help people get the home they want, even if they don’t meet the requirements of a conventional loan. Babak is dedicated to finding you the best mortgage and getting your dream home off on the right foot. Babak is here to help!

Advantages of a Non QM Loan

Small businesses and 1099/independent contractors, have exploded in recent years. Documenting consistent income sources can be a challenge. Non QM loans work well for self-employed and 1099/independent contractors because lenders can offer this mortgage product which can have less restrictions.

Borrowers who do not or cannot show a lot of income may opt for Non QM.  Self-employed and 1099/independent contractor borrowers often have this issue.  For example, if you work on a cash basis, you can use your bank accounts to offset your lack of income (how it’s calculated varies).  Most of the time, you don’t need to provide tax returns or pay stubs, and retirement accounts (with restrictions) can even be used.

The Non QM mortgage loan is not bad, it is a way for alternative lenders to compete for funding loans for borrowers not eligible for conventional or government-backed loans. 

How to get approved for a Non QM Loan

  • The FICO credit score range is 620-840
  • A credit score at least 620
  • Have stable income with a minimum 24 month history
  • Good debt-to-income ratios
  • Have sufficient cash reserves

How a Non QM Loan Works

Generally, Non QM loans are given to people who don’t meet the requirements for Fannie Mae and Freddie Mac loans. Typically small business owners and self-employed and 1099/independent contractor borrowers are good candidates for Non QM loans.

Non QM loans have slightly higher interest rates than traditional mortgages, but are more likely to be approved if you don’t qualify for traditional loans.

Are Self Employed/Non QM Loans Right for You?

Here are answers to some of the most frequently asked home buyer questions. As a next step, Babak can assist you in selecting the most affordable home loan.

If you recently completed a budget, Babak would like to see it. There are many resources available online and in print that can help create a realistic household spending plan. Please don’t be shy about sharing details such as the monthly rent or mortgage payment on your existing home, any existing credit card balances, current insurance policies, and other debts.

With this information, Babak can help you assess your buying power and guide you toward the home loan package that is right for you.

 In order to qualify for a Non QM loan, the borrower needs to have a minimum credit score of 620 and a minimum of six months of on-time payments.

The borrower also needs to have a somewhat stable income and good debt-to-income ratios, as well as sufficient cash reserves. If you don’t meet these requirements, Babak will work with you to find the perfect solution for you.

A Non QM mortgage loan is a type of home loan that requires lower documentation and credit score than a conventional mortgage.

For example, in lieu of income or asset documentation, a Non QM loan may require the borrower to show evidence that he or she has an adequate credit score, has steady employment for at least two years, and an acceptable debt-to-income ratio.

Non QM loans are a form of mortgages that are considered to be an alternative to a traditional mortgage.  The US mortgage market has been dominated by either Fannie Mae or Freddie Mac, but this market has opened up to other lenders in the past few years.

Advantages of a Self Employed/Non QM Loan

Get more options on what fits your needs

Higher chances of being approved for a loan

LImited Documentation

Offers a mortgage solution for business owners and independent contractors