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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/28/2019  10:35 PM
Author:  DrTarr Number:  129253 of 129286

Again, only for non-qualified mortgages.


You say non-qualifying mortgage like it is a bad thing :)

This is no way means the borrower does not qualify, i.e. low/no doc, stated income. This just means is doesn't qualify for some federal safe harbors. I am sure you know - but for other readers on the board. Don't let the term non-qualifying mortgage (non QM) leave a bad taste in your mouth - or your pocket book. All it really means is the loan won't be sold to Fannie. So creditors hold it on their own balance sheet. And because they retain the risk, most are actually very well underwritten and have lower default risk.

Yes, there are many creditors who do non QM loans.

The rates are the same as any second or investment so using different source of income in the gig economy, for baby boomers, self employed is becoming more common.

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