One of the significant accomplishments in a person’s life is to own a home. If you are not financially well-off, you can use a mortgage to purchase a home. There are various types of mortgages, and in this context, we will discuss about non-QM loans.
For starters, non-QM loans do not follow the rules and regulations that are set by the government in 2009. Non-QM loans have not been present for quite some time, but they are now making their way back into the market.
What you should know about non-QM loans
About Non-QM Loans
The Customer Finance Protection Bureau (CFPB) came up with a new set of regulations in 2014. These regulations were meant to offer some guidance on what qualified mortgages entail. These laws were also intended to protect mortgage lenders after the issuance of loans that met the threshold that was outlined by the federal government.
After these laws were passed, the non-QM loans did not meet the standards of the Customer Finance Protection Bureau (CFPB). For a person to access a non-QM loan, they must have a high credit score and substantial cash reserves.
Some of the conventional non-QM loans that are present today are such as: