Qualified Mortgages vs. Non-Qualified Mortgages (QM vs. non-QM)
Property loans in the US can be divided into two categories: qualified mortgages (QM) and non-qualified mortgages (non-QM). “Qualified mortgages” are the traditional type of mortgages, issued based on a detailed check of the borrower’s US credit rating from the 3 agencies, verified income, residency, assets, etc. “Non-qualified mortgages” is a comprehensive term for any type of mortgage that doesn’t fit into the typical mold of a mortgage loan.
What is a non-QM loan?
Non-QM does not mean the loan is sub standard. It simply means it doesn’t fit into what Fannie Mae considers to be a QM loan, whether because of the type of property or the borrower’s situation. Some non-QM loans are for a 40-year mortgage as opposed to the typical 30-year limit, while others may be for interest-only mortgage for investors interested in quickly selling the property and not concerned with repaying the principal. Anything outside of the typical model of a home loan falls under the category of “non-QM loan.” Loans for non US citizens or US citizens that earn their income abroad would also fall under the category of a non-QM loan.
Non-QM Mortgage Loans from US Homes Asia
And this brings us to the non-QM loans that US Homes Asia specializes in. We provide US real estate loans through the largest dedicated non-QM lender in the US. These loans are ideal for people who are credit-worthy, but do not have sufficient credit with the 3 credit rating agencies in the United States.
The Ideal US Home Loan for Expats, Koreans, and Everyone Abroad
A non-QM mortgage from US Homes Asia allows many people who never dreamed they could get a mortgage to obtain a US property loan in the United States. These loans are ideal for:
- American expats who are considering returning home but do not have credit because of an extended time spent abroad.
- Foreign nationals (non-US citizens) who do not have any credit in the United States but want to invest in US real estate.
- Expat or Non-US citizens who currently own US real estate, but want to refinance to a lower rate and/or extract equity out of their property to invest elsewhere, pay off bills, start a business, etc.
If you or someone you know falls into one of these categories, contact US Homes Asia and we can get the process started right away. Many loans clear within 30 days, so the whole process will likely be done by next month!