For home buyers and homeowners
Non-QM Loans in Michigan
Non-Qualified Mortgage (Non-QM) loans are built for borrowers whose files don’t fit conventional lending guidelines, and they usually cost more. Whether you’re self-employed, using asset-based income, or recovering from recent credit events, Non-QM loans offer other ways to document a file.
- No credit pull to talk
- Licensed mortgage broker, NMLS 2041154
Non-QM Loan
Key benefits
Ways to document income
Bank statements, assets converted into income, or for a rental, the property’s own rent.
Shorter waiting periods
Some programs allow a recent bankruptcy, foreclosure or short sale, with shorter waiting periods than the agencies.
Property types the agencies decline
Condotels, mixed-use buildings and unusual builds can be financed with a portfolio loan the lender keeps.
Which non-QM loan fits which situation
Non-QM is not one product. It is the category for files that make sense to a human and not to an automated underwriting system. Find your situation and it points at the right one.
| Where you are | Why conventional says no | What to ask about |
|---|---|---|
| Self-employed, strong business, small taxable income | The return shows the profit after deductions, and that is the only number it reads. | A bank statement loan, qualified on deposits. |
| Buying rentals and already own several | Conventional counts every mortgage against you and caps how many you can hold. | A DSCR loan, qualified on the property's rent. |
| Substantial savings or investments, modest income | There is no monthly paycheck to point at. | An asset-based loan, which converts assets into qualifying income. |
| A bankruptcy, short sale or foreclosure behind you | Mandatory waiting periods apply regardless of how you have behaved since. | Non-QM with shorter seasoning than the agencies allow. |
| Income earned abroad, or no Social Security number | The documentation simply does not fit the form. | Foreign national or ITIN programs. |
| A property the agencies will not take | Condotels, mixed use and unusual builds fall outside the guidelines. | A portfolio loan the lender keeps rather than sells. |
Tell Samantha the situation
Guidelines
Guidelines for this loan
What non-QM lenders usually check. Each program sets its own rules, so treat these as a starting point.
Credit Score
Varies by program; many look for 620 or higher.
Read the guideDown Payment
Larger than conventional, set by each program.
Read the guideIncome
Bank statements, asset depletion, or, for investment property only, the property’s rent (DSCR).
Read the guideDTI
Can exceed traditional limits with compensating factors.
Read the guideOfficial sources
Check the rules at the source
Program guidelines change. These are the official pages we check them against.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
What makes a loan non-QM?
It does not meet the CFPB’s Qualified Mortgage rules. For a home you will live in, the lender still has to verify that you can repay (Regulation Z, 12 CFR 1026.43).
Can I qualify using my assets instead of income?
Often. Asset depletion lets some lenders count liquid assets as income, and each program sets its own formula for how much.
Is there mortgage insurance on a non-QM loan?
Usually not. Non-QM lenders tend to build the risk into the pricing and the down payment instead, so ask how a larger or smaller down payment changes the pricing on your file.
How long after a bankruptcy can I borrow?
Some non-QM programs consider a file one to two years after a bankruptcy, foreclosure or short sale, sooner than the agency waiting periods. Expect to show the discharge or sale papers, a short letter explaining what happened, and on-time payments since.
Do non-QM loans cost more?
Usually, yes. Expect a higher rate and often higher fees than a conventional loan in exchange for the flexibility.
Does Michigan change anything on a non-QM purchase?
The tax line. The year after a Michigan home sells, its taxable value resets to half of the assessor’s market value, so the seller’s tax bill is not your tax bill. If the home is a rental, it is also taxed at the non-homestead rate, which adds school operating millage that a home you live in does not pay. Estimate the tax for an address before you settle on a price.
What our clients say
Working with Samantha and her team was such a breath of fresh air. They are extremely professional and always go above and beyond every expectation. A true pleasure to work with.
Can’t say enough great things about Samantha and her team at Align Lending! Highly recommend
Individual experiences. Results vary.
Ask Samantha whether this loan fits
Bring the part of your file that does not fit the usual rules. Samantha will tell you whether a conventional or government loan can still work before looking at non-QM.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
Samantha works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Start with your question
Build a homebuyer game planAlign Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
