A non-qualified mortgage loan is more notably referred to as a Non-QM loan. Within the mortgage industry, a qualified home loan is one that goes with the requirements set forth by the Consumer Financial Protection Bureau (CFPB) and standards set by the federal government.

These include loans sold or insured by entities like as Fannie Mae or Freddie Mac.

You have to understand that not every borrower fits neatly inside a traditional government matrix.

Ones such as investors, foreign nationals and those who are self-employed, as well as borrowers with credit blemishes, such as foreclosures, low credit scores or bankruptcies in the past, may discover that it is a bit har to qualify for a conventional loan.

How A Non-QM Loan Can Help

That’s where a Non-QM loan can be of aid. A Non-QM loan can be the answer to help a borrower have the American dream of home ownership.

Because these are scenarios that do not meet federal standards for qualified or traditional mortgage loans, lenders such as  have developed special loan products to help more Borrowers achieve their goal of home ownership.

A Non-QM loan has different underwriting guidelines than conventional or government-backed loans.

Non-QM loan lending generally guidelines follow regulatory guidelines while considering a borrower’s Ability to Repay (ATR), according to the loan’s terms.

This includes cash flow through personal or business bank accounts.


A majority of the time, we find borrowers are in one of three situations that best fit a Non-QM loan:

  • Self-employed borrowers with a lot of income tax write-offs
  • Borrowers with credit blemishes
  • Investors wishing to purchase rental or vacation home properties.

Self-employed borrowers often face more complexity than traditional wage-earning borrowers.

A Non-QM loan can help qualify these borrowers with alternative documentation, such as bank statements. Recent (2019) research finds nearly 30% of Americans are self-employed.

Two years later, these same Americans will need to provide documentation to qualify for a home loan. We understand, and we’re here for you and your Borrowers.

As an example, a successful business owner lacking pay stubs may benefit from the more flexible credit requirements.

Every individual has a story. Our non-QM loans help more borrowers achieve the dream of home ownership.

I had a very difficult situation with complexities that I will not go into but Wes was patient and stood by us the entire time. He was smart and had a lot of creative ideas. I cannot thank him enough and will be going back to him when I make my next purchase!

Garret W.

Frequently Asked Questions

What is the lowest fico you accept ?

580 credit score

What is the minimum down payment?

10% on Jumbo and 5% for conventional

Do you have programs that don’t require tax returns?

Yes, bank statement and DSCR program and full stated program

Start Your Loan Application

Ready to start your loan application process? Simply fill out this contact form and one of mortgage brokers will be in contact with you in a timely manner.

At The Funding Group we deliver the absolute best lending experience through knowledge, communication and care.

Our mission supports the growth and strength of our communities and provides a pathway to the dream of home ownership.


451 N Canon Dr Suite 1
Beverly Hills California 90210


Copyright © 2024The Funding Group