NQM
Commercial
Empower your investment, reduce risks, and open doors to new opportunities.
Non-QM (Non-Qualified Mortgage) loans for commercial properties are a type of financing that does not meet the strict criteria set forth by the Consumer Financial Protection Bureau (CFPB) for a Qualified Mortgage (QM). They serve the purpose of filling a niche in the real estate market, offering financing solutions for those who might not qualify for traditional mortgage products.
Income Verification: Unlike QM loans, Non-QM loans often allow for alternative methods of income verification. This might include bank statements, asset depletion, or other non-traditional methods.
Flexibility in Terms: Non-QM loans can offer more flexible terms than standard commercial mortgages. This includes different amortization schedules, interest-only periods, and potentially higher loan-to-value (LTV) ratios.
Credit Requirements: These loans may have more lenient credit requirements, making them accessible to borrowers with less-than-perfect credit histories.
Interest Rates and Fees: Generally, Non-QM loans have higher interest rates and fees compared to QM loans, reflecting the increased risk taken on by the lender.
