Non-qualified mortgages are for people who don’t meet the regular criteria set by the Consumer Financial Protection Bureau for getting qualified loans, like monthly pay stubs and a good credit score.
Such borrowers have the option of choosing a non-qualified mortgage but may have to pay a higher down payment and/or interest rate. These loans make sense for people with flexible incomes like freelancers or small business owners. Here’s how you can apply for a non-qualified mortgage:
- Check your eligibility: Since non-qualified mortgages don’t follow the usual eligibility criteria, they are more flexible and depend on each lender. Keep all your documents including income and bank statements, pay stubs, tax returns, and other financial information apart from ID verification documents such as address and social security number.
- Shop for lenders: You can look for lenders in non-qualified mortgages either online or locally. Make sure to do a thorough vetting of the lender by reading through other borrower reviews.
- Complete the application: Each lender will have their process, make sure to clarify the steps to apply for a non-qualified mortgage and ensure that all the information you provide is accurate. Also, remember to confirm if the terms of the application meet your specific requirements.
After the application is complete and the loan is granted, make sure to pay back the loans on time every month. Monitor your credit score by following good credit habits not just with your mortgage but with any other debt you may have.
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