Wholesale Non-QM Loans with NQM Funding

Non-Qualified Mortgage (Non-QM) loans have emerged as a pivotal solution for a diverse range of borrowers. Unlike Qualified Mortgages (QM), which adhere to strict federal guidelines, Non-QM loans offer flexibility and alternative qualification criteria, making them suitable for individuals who might not qualify for traditional mortgages. This adaptability makes Non-QM loans an essential part of any mortgage broker’s or loan officer’s portfolio.

The Distinction Between QM and Non-QM Loans

To fully appreciate the value of Non-QM loans, it’s crucial to understand the differences between QM and Non-QM loans. Qualified Mortgages are defined by the Consumer Financial Protection Bureau and include certain features that ensure borrowers can reasonably afford their loans. These features include limitations on points and fees, no risky loan features (like negative amortization or interest-only loans), and a requirement that a borrower’s debt-to-income (DTI) ratio be no more than 43%.

In contrast, Non-QM loans are not bound by these restrictions. They can accommodate higher DTI ratios, use alternative documentation for income verification (like bank statements or asset depletion loans), and sometimes include interest-only payment periods. These features make them particularly attractive to self-employed individuals, investors, and foreign nationals who might have substantial assets but irregular income streams.

The Importance of Non-QM Loans in the Mortgage Industry

Non-QM loans play a vital role in the mortgage industry, offering solutions where traditional lending falls short. They cater to a significant segment of the population that possesses the means to afford a mortgage but doesn’t fit into the conventional lending criteria. By offering Non-QM loans, mortgage brokers and loan officers can tap into this market, addressing the needs of underserved borrowers and expanding their business scope.

For instance, a self-employed entrepreneur with a fluctuating income might find it challenging to secure a traditional mortgage due to the variability in their earnings. Non-QM loans, with their flexible income verification methods, can provide a viable pathway to homeownership for such individuals. Similarly, investors looking to purchase properties to rent out might benefit from Debt Service Coverage Ratio (DSCR) loans, a type of Non-QM loan that bases the loan qualification on the cash flow of the rental property rather than the individual’s income.

Overview of NQM Funding’s Non-QM Products

NQM Funding stands out in the financial marketplace with its diverse array of wholesale Non-QM loan products. These offerings are designed to meet the unique needs of a wide range of borrowers, particularly those who might not fit into the traditional lending framework. By understanding the specifics of each product, mortgage brokers and loan officers can better serve their clients and expand their business reach.

DSCR (Debt Service Coverage Ratio) Loans

One of the standout products in NQM Funding’s portfolio is the DSCR Loan, tailored for real estate investors. This loan type is ideal for clients looking to purchase or refinance rental properties. The unique feature of the DSCR Loan is that it bases the borrower’s qualification on the cash flow generated by the property, rather than their personal income. This approach makes it an excellent option for investors who own multiple properties or those with significant rental income.

ITIN Loans

NQM Funding’s ITIN Loans cater to a significant and often underserved segment of the market: foreign nationals and residents without Social Security numbers. These loans use Individual Taxpayer Identification Numbers (ITINs) for borrower identification, making them accessible to non-U.S. citizens who are looking to invest in U.S. real estate. ITIN Loans are a crucial tool for mortgage professionals seeking to serve a diverse, international client base.

Bank Statement Loan Program

Recognizing the challenges faced by self-employed individuals and entrepreneurs in proving their income through traditional means, NQM Funding offers the Bank Statement Loan Program. This innovative product allows borrowers to use their personal or business bank statements as proof of income. It’s an ideal solution for those with strong financial profiles but non-traditional income streams.

Tailoring Loan Solutions to Client Needs

Each of these Non-QM loan products is designed with specific borrower scenarios in mind, allowing mortgage professionals to offer tailored financial solutions. By partnering with NQM Funding, brokers and loan officers can access these specialized products, along with expert support and guidance, ensuring they can meet the diverse needs of their clients effectively.

The Advantage of Partnering with a Specialized Lender

For mortgage brokers and loan officers, partnering with a lender that specializes in Non-QM loans, like NQM Funding, is a strategic move. NQM Funding’s expertise in the Non-QM sector translates into a deep understanding of the unique challenges and opportunities these loans present. This partnership can significantly enhance a mortgage professional’s ability to serve a diverse client base effectively.

Benefits of Working with NQM Funding

  1. Access to a Broad Range of Non-QM Products: NQM Funding’s extensive portfolio of Non-QM products, including DSCR Loans, ITIN Loans, and Bank Statement Loan Programs, provides mortgage professionals with solutions to cater to various borrower scenarios. This diversity allows for more tailored financial solutions for clients with unique needs.

  2. Expert Support and Education: NQM Funding offers comprehensive support and educational resources to its partners. This includes training on Non-QM products, updates on industry trends, and guidance on navigating complex borrower situations. Such support is invaluable in ensuring that mortgage brokers and loan officers are well-equipped to advise their clients effectively.

  3. Competitive Edge in the Market: By offering Non-QM loan options, mortgage professionals can differentiate themselves in a competitive market. Partnering with a specialized lender like NQM Funding allows brokers and loan officers to cater to niches that many traditional lenders overlook.

  4. Streamlined Application and Approval Process: NQM Funding’s expertise in Non-QM lending means that they have streamlined application and approval processes for these specific loan types. This efficiency helps in reducing turnaround times and improving the overall client experience.

  5. Marketing and Business Development Support: Mortgage professionals partnering with NQM Funding also benefit from marketing and business development tools. These resources can help in attracting new clients and building a stronger presence in the Non-QM loan market.

For mortgage brokers and loan officers looking to expand their offerings and tap into the growing market of Non-QM loans, partnering with NQM Funding is a strategic step forward. To explore this partnership and learn more about how it can benefit your business, visit NQM Funding’s Contact Page. Here, you can get in touch with their team of experts, who can guide you through the process of becoming a partner and accessing their suite of Non-QM loan products.

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