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What’s the Difference between a QM and Non-QM Loan Program for Real Estate Investors? | Think Realty

What’s the Difference between a QM and Non-QM Loan Program for Real Estate Investors? | Think Realty
Written by Publishing Team

Great question! QM stands for Qualified Mortgage. Eligible home loans tend to be both conventional government-backed loans and conventional loans (primarily conventional government-backed loans).

Quality management loans are usually processed through a bank on owner occupied property while non quality management loans are a more desirable solution for real estate investors in investment properties.

NON-QM stands for Non-Qualified Mortgage. Non-QM loans are typically portfolio loans to private investors that do not comply with strict government guidelines or traditional mortgage guidelines.

Why should real estate investors choose non-quality management loans over conventional or conventional loans?

Mortgage lenders using quality management loans must first qualify the mortgage borrower’s income, obligations, and monthly debt payments to determine if the borrower can successfully repay the loan in the future. To successfully qualify for a quality management loan, real estate investors must meet stringent requirements set by the Consumer Financial Protection Bureau. This approval process requires borrowers to submit extensive documentation regarding their credit history, income, assets and monthly debt payments, which usually take more than a month to complete.

If you have an investment property that needs a quick turnaround without strict guidelines, QMS-non-conforming loans may be better for you – QMS-non-conforming loans do not need to adhere to these strict guidelines! This means that non-QM lenders like Stratton Equities can do just that Provide faster service and approval for more types of real estate investment opportunities.

Non-QM lenders understand that life can happen and that for a traditional lender (such as a bank) some genuine investors may not offer as good a qualified loan candidate. This restriction may be due to employment status, income, credit history and liquid asset requirements – but with non-qualified mortgages, private lenders focus on; High credit score, investment experience and liquid assets.

Unlike traditional investment property loans that have a maximum limit of 70% LTV, a non-QM mortgage program has a maximum limit of 85% LTV and no PMI. This allows the borrower to put less money on his purchase.

As a result, the permissive restrictions of non-quality management loans make them ideal for these types of real estate investors:

Self-Employed Investors: Especially in light of the unprecedented year, with COVID-19, we fully understand how difficult it is to find a steady income. Fortunately, we here at Stratton Equities specialize in non-quality management and asset-based loans. This means that you do not need to show us your income! We base our loans on the value of the property itself or the credit score of the borrower and liquid assets.

Foreign nationals: Government-backed loans usually require proof of a US Social Security number or W2 (which is a US tax form). Since non-QMS compliant loans do not have such requirements, they are ideal for foreign nationals who are in the United States on a visa and looking to invest.

Why should real estate investors work with Stratton stock?

Stratton Stock is Driving Hard Money and Non-QM Mortgage Lender For real estate investors in the United States. With the largest library of quality non-management mortgage loan programs under one roof, we here at Stratton Equities pride ourselves on designing the perfect mortgage loan options for every client’s needs nationwide.

We also understand how important your time is – unlike banks that mediate your loan application to other banks to waste time, our loan officers can get back to you with your pre-approval for a loan within 24 hours.

As a straightforward hard money lender, Stratton Equities and our team of expert loan officers will help guide you through the expedited loan approval process, which finishes weeks ahead of our traditional competitors. There are no scrap fees! No upfront fee! No tax returns!

At Stratton Equities, we work directly with real estate investors and help them achieve their entrepreneurial goals in real estate. Whether you are an experienced borrower or a first-time investor, we understand how difficult and complex it can be to try to enter this competitive field. But do not worry! All we really ask of our clients is determination and commitment to their projects. No experience is needed. Welcome to your one-stop shop for all your real estate investment loan needs!

If you would like to learn more about our library of mortgage loan programs, click here to explore our website. Are you considering a property and would like to get pre-qualified? Place your order now and we’ll get back to you within 24 hours.

Contact Stratton Equities, the leading provider of hard money, non-lender funds, to speak with one of our talented and experienced loan officers at 800-962-6613, Email usOr, apply for a prequalification loan today!

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