The Qualified Mortgage (QM) was introduced in January 2014, and the rise of non-QM loans soon followed. QM loans are required to meet certain Consumer Financial Protection Bureau Standards, which are set forth in the Dodd-Frank Act. For all residential mortgage loans, QM lenders are required to assess the borrower’s ability to prepay and a have strict underwriting process to examine a borrower’s income and debt. These loans were introduced to minimize the risky lending practices that ultimately led to the housing crisis of 2007-2009.
As the result of the introduction of QM loans, some lenders began originating non-QM loans to provide a solution for Americans who cannot qualify a qualified mortgage. Non-QM loans comply with the strict standards required of QM loans to a degree. But, while they don’t follow the rigorous standards of QM lending exactly, non-QM loans can be appropriate for a number of buyers, particularly those who don’t qualify for a QM loan. The strict requirements of QM loans means qualifying for a loan is very difficult for many Americans who don’t have an above average credit score, plentiful collateral, or proof of steady income.
Requesting a non-QM loan can be risky, especially as some lenders are new to the non-QM market. However, there’s nothing to worry about when you work with an experience and reputable non-QM lender like Athas Capital Group who has been providing the non-QM market loans since 2008. Reliable non-QM lenders still follow sensible underwriting procedures and apply similar ability-to-repay guidelines, through their lending programs are more flexible than those provided by QM lenders.
If you’re considering non-QM loan, then contact Athas Capital Group. Athas Capital Group is one of the nation’s leading non-QM lenders and provides clients with transparent, structured lending programs that meet their unique funding needs. A boutique-style direct lending platform, Athas offers borrowers the best non-QM lending programs with quick closing times and no hassle.