How To Decide if a Non-Qualified Mortgage Is Right for You

When it comes to buying a home in Florida, a mortgage is often the best option for most people since it allows them to pay for their home over time instead of all at once. However, there are many types of mortgages available in the market, each with its own set of guidelines and requirements. One such type is a non-qualified mortgage loan.

At Mortgage Queen Florida LLC, we understand that choosing a mortgage type that’s right for you can be overwhelming. That's why, in today’s article, we'll discuss what non-qualified mortgages are and how to decide if one is right for you!

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What Is a Non-Qualified Mortgage?

A non-qualified mortgage (non-QM) is a type of home loan that doesn't fit the standard requirements set by the Consumer Financial Protection Bureau (CFPB) guidelines. These loans are typically designed for borrowers who may not check all the boxes needed to qualify for a traditional mortgage.

Step One: Consider Your Credit Score

Non-qualified mortgage loans tend to be more flexible than conventional mortgages when it comes to credit scores. Since these loans don't adhere to typical guidelines, lenders have more wiggle room when it comes to credit scores. It’s important to note, though, that non-QM lenders sometimes require a higher down payment or cash reserves to balance the risk.

Step Two: Evaluate Your Financial Situation

Before applying for a non-qualified mortgage in Florida, you should have a solid grasp of your financial situation. Generally speaking, these loans are designed for borrowers who have non-traditional or irregular income streams, such as self-employed individuals or small business owners. However, that doesn't mean someone with a traditional job can't apply for a non-QM loan. You'll want to evaluate your current financial situation and your long-term financial outlook to ensure that a non-QM loan is right for you.

analyzing model home with a magnifying glass

Step Three: Assess the Property

When considering a non-qualified mortgage, it's also essential to analyze the property you're interested in purchasing. Due to the exceptional nature of non-QM loans, there may be additional appraisal or inspection requirements for your property. Anticipating these requirements early on can help you prepare for the next steps after applying for a non-qualified mortgage loan.

Choosing the right mortgage type can be a difficult task, but Mortgage Queen Florida LLC is here to help. As the premier non-QM mortgage lender in Florida, we’ve already helped countless individuals afford homes they never thought they’d be able to. We’d love to help you too, so contact us today to get started!

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