Many times our Non-QM borrowers have a strong balance sheet but their income is too complex for most lenders, in many cases the PFS can reveal additional income or financial strength that isn't always on the tax return. Other examples of Non-QM borrowers is where they've experienced a negative credit event.
Clients that have recently sold a company and they are currently unemployed but have exceptional assets, high levels of liquidity and other investments. Many times Clients are considered Non-QM simply because they're self-employed and their tax returns are reflective of low net income.
Other examples of Non-QM: Foreign National Applicants, Irrevocable Trust Vesting Applicants, Blind Trust Applicants, Clients that want to purchase prior to selling their current (departing) residence. We have a Cross-Collateral product that is unparalleled that will allow as little as 10% down up to 5.0M purchase price.