How to Choose the Best Non-QM Mortgage Lender in Florida 2022

By February 24, 2022 No Comments

Introduction: Who is The Top Non-QM Mortgage Lender in Florida 2022?

A non-qualified mortgage – or non-QM – is a home loan that is not required to meet agency-standard documentation requirements as outlined by the Consumer Financial Protection Bureau.

Non-QM mortgage lender loans in Florida may encapsulate a wide variety of mortgages, including

  1. Home loans exceeding 30 year terms
  2. Home loans with negative amortization
  3. Home loans with interest only payments

Non-QM loans may also exceed the CFPB’s current price based thresholds:

  1. QM Safe Harbor APR equal or less than APOR + 1.5%
  2. AM Rebuttable Presumption: APR greater than APOR + 1.5%, but equal or less than 2.25%

Avoiding those agency-standard documentation requirements means lenders do not need to make a good faith determination on the borrower’s ability to repay a non-QM loan. In this case, “good faith determination” usually refers to checking W2 forms, pay stubs, bank statements and other documents that verify you make enough money to eventually pay back your home loan.

If you’re thinking that sounds pretty risky, then you would be absolutely right. Homebuyers who use non-qualified mortgages are not protected by the CFPB. But, because non-QM loans are not burdened by those CFPB rules, lenders are able to offer more flexible income requirements while setting higher interest rates to offset the added risk.


The Do’s of Finding a Non-QM Mortgage Lender in Florida

A non-QM mortgage is a type of mortgage loan that does not meet the guidelines of qualified mortgages. It is an alternative to a Fannie Mae or Freddie Mac backed loan. Non-QM loans are also called “jumbo” loans, because they are considered too large for the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC).

Non-QM lenders can offer lower rates and more competitive terms than those available through a Fannie Mae or Freddie Mac backed loan.

Below are some tips on how to find a non-QM mortgage lender in Florida:

1) Do your research: There are many lenders that do not require QMS, so it’s important to do your research before you start contacting lenders. Start by looking for lenders

Why You Should Also Offer Non QM Mortgage Loans in Florida

Are you leaving money on the table by only offering conventional home loans? Non-QM loans have been increasing in demand since their inception in 2015. The Mortgage Bankers Association forecasted Non-QM originations will reach $3.85 trillion in 2021, a new record after 2020’s $3.83 trillion in origination. 2022 shows no signs of slowing down.

Predictions are the Non-QM market will grow to be 10% of the mortgage market in the new year.  This indicates an opportunity for brokers to grow their business by offering a wider selection of loan products.  If you’re unfamiliar with Non-QM, consider this a quick primer.

Non QM Mortgage Lender in Florida Loans Allow You To Work With A Variety of Borrowers

Offering Non-QM loan products allows you to tap into new markets of potentially underserved borrowers. How often do you hear about young professionals finding it difficult to obtain a home loan – or self-employed borrowers who lament their lack of conventional documentation to prove their income? If you’re not working with these borrowers now, offering Non-QM loan products could help you attract these borrowers.  The U.S. Bureau of Labor Statistics cites there are ten million self-employed business owners.  Wouldn’t you like to work with millions of new borrowers?

Because Non-QM loans have more flexible terms than conventional QM loans, they are a great solution for a wider range of buyers.  In contrast to Non-QM loans, conventional QM loans come with very rigid underwriting guidelines; the A-paper underwriting matrix doesn’t allow for much flexibility, when needed, and that’s where Non-QM can help. Non-QM serves borrowers  who may not fit the traditional box when viewed from the Conventional QM perspective. However, these same borrowers may be just as credit worthy as others. This group of borrowers includes self-employed investors who seek to qualify their ability to repay based on their rental income.

To tap into this new group of borrowers, brokers will need to become familiar with Non-QM loan products.  Choose a Non-QM mortgage lender in Florida to partner with a variety of loan products and the expertise to help you match this new borrower base with the right one – Residential Acceptance Corporation is the partner you need.