Benefits of Choosing a Non-QM Mortgage in Today’s Market

It feels like everyone's a mortgage expert these days, but when you actually need a loan, all the talk about "conventional" and "qualified" can get pretty confusing, right? It's easy to feel like you're stuck in a rigid system that just doesn't get your situation. Well, I'm here to tell you that it doesn't have to be that way. 

We've seen so many people, especially the hard-working folks in Connecticut, Florida, Massachusetts, and New York, who have an awesome financial story, but their paperwork just doesn't fit the mold. That's why I get so excited about Non-QM mortgages. They're a breath of fresh air.

What is a Non-QM Mortgage, anyway?

So, "Non-QM" is just a fancy way of saying a home loan that's not tied to the usual rules from Fannie Mae and Freddie Mac. Think of it like this: A conventional loan is a one-size-fits-all suit. It might be fine for some, but for others, it's just baggy in all the wrong places. A Non-QM mortgage is more like a custom-tailored suit. 

We can look at your real income in a totally different way, not just your W-2s and tax returns. We might use your bank statements, 1099s, or even the value of your assets. It's a much more personal approach, and that's cool.

The best parts of Non-QM Loans

I mean, the whole point of these loans is flexibility. It's a game-changer for a lot of people.

Flexible Qualification

I’ve had so many people come to us frustrated because their tax returns don't show their real income. Maybe you're a small business owner who writes off a lot of expenses, that's smart! A Non-QM loan lets us use a better method to find out your true earning power.

Perfect for Self-Employed & Investors

This is where Non-QM loans really shine. If you run your own business or you're a real estate investor, you know your income can fluctuate. Our bank-statement loans for business owners or DSCR loans for investors are built exactly for this. We use what a property can earn in rent to qualify you, not your personal income. It's a seriously smart way to get ahead.

Credit Flexibility

We get it. Life has its ups and downs. Maybe you had a tough time with a foreclosure or a short sale a few years back. It seems like the traditional banks hold that against you forever. With a Non-QM loan, we can often be more understanding. We still look at your credit, but we’re a little more human about it.

Specialized Products

We don't just have one or two options here. We've got a whole menu. We offer bank-statement loans, DSCR loans, and even interest-only mortgages for those who want a lower initial payment. We even have loans for people with tons of assets but not much income, like retirees, which we call asset-depletion loans. We can find a solution for almost any situation.

Non-QM vs. Conventional: What's the real difference?

I think the biggest contrast is really about how we look at you. It's about being seen as a person with a unique financial story, not just a number on a W-2.

Conventional loans are pretty black and white. They want to see two years of steady, predictable income from tax returns. You need a solid credit score and very few past issues.

Non-QM loans are more of a conversation. We want to find out your true ability to pay. We use different documents like bank statements or profit-and-loss sheets. The rates might be a little higher because there's a little more risk, but it's often the only way to get a loan for your situation. It's a trade-off many people are more than willing to make.

Who's a good fit for a Non-QM Loan?

You should probably consider a Non-QM loan if you're a:

1. Self-employed person or gig worker whose income isn't easily proved with tax returns.
2. Real estate investor who needs a loan based on the property's income, not your own.
3. Retiree with plenty of savings but not much monthly income.
4. Someone with a recent credit event like a foreclosure.

We've been helping families buy homes since 2003, and we've got the local knowledge to help you in Connecticut, Florida, Massachusetts, and New York.

What kinds of Non-QM loans do we have at Prysma?

We've worked hard to create some awesome products for our customers. Here's a quick peek:

1. Bank-statement loan: This is our most popular one for self-employed people. We just need 12-24 months of your business or personal bank statements.
2. DSCR loan for investors: This is the investor's secret weapon. We use the property's rental income to make sure it covers its own expenses.
3. Asset-depletion loan: For those who are asset rich but have low income, we can actually use your assets to figure out your eligibility.
4. Interest-only mortgage: This is a great choice if you need lower monthly payments at the beginning of your loan.

We can help you find out which one is the perfect fit. Talk to a specialist about these loan programs.

The costs and rates-what's the deal?

Let's be real, you're not going to get the same low rate as a W-2 employee with a perfect credit score. The rates on Non-QM loans are tied to the amount of risk involved. Things like how much you put down, your credit, and the type of property will all affect the rate. We are always upfront about the costs and will walk you through every single detail. We're on your side, so you can trust us to find you the best option.

Get a personalized quote from our team and let's figure out the numbers together.

How do you start with Prysma?

The process is surprisingly simple. We've got a system that just makes sense.

1. Quick Assessment: We'll have a brief chat to get the lay of the land.
2. Document Checklist: We'll give you a simple list of what we need for your loan.
3. Pre-Qualification: Once we have your docs, we can get you pre-qualified so you can go house shopping.
4. Property & Appraisal: You find the perfect place, and we'll take care of the rest.
5. Underwriting: Our team reviews everything to make sure it all checks out.
6. Clear to Close: We get you to the finish line and ready to close on your new home.

It really is that easy. Talk to a Non-QM specialist in Connecticut, Florida, Massachusetts, or New York today.

Ready to take the next step with Prysma today?

I feel like the whole mortgage world has been so focused on one type of person for so long. We're trying to change that. Prysma Lending Group is an Equal Housing Lender and our NMLS number is #2250. We've been doing this for over 20 years, so we know our stuff. We can't wait to help you.

Prysma has established itself as a recognized leader in ITIN/Tax ID Loans, serving non-US citizen families across Connecticut, Florida, Massachusetts, New Jersey, New York, Pennsylvania, and Texas. Our experienced loan professionals personally meet with each client to identify optimal rates and financing options for your specific situation.

Don't let uncertainty about current mortgage rates delay your homeownership dreams. Contact Prysma today to schedule a personalized consultation and take your first step toward owning a home with a lender who truly understands your community and goals. 

FAQs

• What credit score is needed for a Non-QM mortgage?

While conventional loans often require a high credit score, Non-QM loans are more flexible. We understand that your credit history might have some bumps in the road. Instead of a single number, we look at your whole financial picture, including things like your down payment, assets, and overall ability to repay. So, even if your score isn't perfect, you shouldn't be discouraged, there's a good chance we can still help you.

• Can I qualify with bank statements instead of tax returns?

Yes! That's a core feature of many Non-QM loans. Our bank-statement loan program is specifically designed for self-employed borrowers, business owners, and gig workers who write off a lot of expenses. We use your business or personal bank statements over a period of time to verify your income, which is a much better way to show your true financial strength.

• How fast can a Non-QM loan close?

Because we're a specialized lender, our process is often more streamlined than a traditional bank's. This means we can usually close Non-QM loans faster. While the exact timeline depends on your specific situation, many of our clients are pleasantly surprised by how quickly we can get things done.

• Do Non-QM loans have prepayment penalties?

Some Non-QM loans might include a prepayment penalty, but this is not always the case. A prepayment penalty is a fee you pay if you pay off your loan early, either by refinancing or selling the property. We'll be completely upfront about the loan terms and make sure you understand if a prepayment penalty is part of your agreement before you sign anything.

• Are Non-QM loans available where I live?

Prysma is licensed to serve borrowers in Connecticut, Florida, Massachusetts, and New York. If you're looking for a Non-QM mortgage in any of these states, we have the local expertise to help you find the right solution.

• Is a Non-QM mortgage the best choice for me if I'm self-employed?

For many self-employed individuals, a Non-QM loan is a great option. It provides a more accurate way to demonstrate your income and get approved for a mortgage. If your tax returns don't reflect your real earnings, a Non-QM loan allows you to use other forms of documentation, like bank statements, to qualify for a home.

• How does DSCR financing work for investment properties?

DSCR (Debt Service Coverage Ratio) financing is a popular Non-QM loan for real estate investors. Instead of looking at your personal income, the loan is approved based on the rental income the property is expected to generate. If the rent is enough to cover the mortgage payment (and a little extra), you can qualify for the loan. It’s a great way for investors to build their portfolios without having to rely on their personal income or debt-to-income ratio.