What Is A Non-QM Home Loan

Real Estate News TV

What is a non QM home loan? That’s the question that we’re posing right now. That is John Lutz. He’s going to let us know what it is and tell us why it’s different and who it’s used best for and why you, John, are very, very good at helping out people like this. But how it’s different. Right. And there’s a huge thing here. It’s really important that people understand. And that’s why I’m begging the agents to kind of tune in here a little different, because you’re going to help business owners 100%. And this should grow your business because it’s a segment you are likely ignoring. And John swims in this in the exact opposite direction of every other mortgage. Right. I mean, so, you know, Mike, you hit on a topic there that’s really, really important with that is that this is definitely going to help people grow their business. You know, we’re still in unchartered waters with what the way the market is right now. And you know what a non QM loan is is basically just not a it’s a non traditional type of home loan. We obviously we do our traditional home loans, our our conventional, our jumbos, our FHA, our VA’s everything and we do those extremely well. But this other this other segment of of home loan that’s out there, I should say, products that are available really need to kind of understand them, get educated on it because it’s a large group of there’s a large amount of people that are that are missing the boat on this. And, you know, as an agent, as a lender, it’s our duty to inform people of loans that they could possibly qualify for. So again, what a non QM loan is a non traditional type of home loan, pretty much. It’s geared towards a self employed business owner. Yes. It allows alternate forms of income to be used to prove what your what you’re making annually. I like that. That sounds really good. Yeah. So the big difference is a traditional loan or conforming loan is going to use full documentation, right? Your traditional two years tax returns, business returns, everything’s signed, sealed, stamped, you know, and this is an alternate way of showing income. So a person like myself as a business owner, what we’re going to do is we’re going to want to take advantage of every opportunity to write off. Yes, all of our expenses. And if you expense stuff, so you have your income that comes in, but they don’t count your top line income. Right. What you’re going to look at in a traditional mortgage is like, okay, how much did you make? And you’re like, Well, no, really, how much you can make. 1090 tax on it. Correct? Yeah. So now my number comes down, comes down, comes down and not necessarily my number, but all business owners are most likely going to do something similar. Then you get down to this bottom number and you’re like, That’s perfect. My whole goal is to maximize the tax code to make sure that I pay as little in taxes as possible and do it legally and correctly. But I’m going to expense my expenses and then I have a lower income and that’s amazing to pay less in taxes. But then the flip side is it hurts. By something big, like the home. So I have a challenge. Yes, but these business owners now most likely have something different, like they have equity or cash. Yes. And they need to qualify for mortgage. They still need a place to live. Correct. So, you know, these programs, Mike, it’s it’s that’s exactly what it’s geared for. Right. You know, as a self-employed business owner, you should be taking advantage of the tax codes. That’s what puts you in a better position to do open other businesses to keep your business thriving. Right? Yeah. And you shouldn’t be penalized for what the bottom line number was on your tax return. If we’re all able to do it, I think we all would. Yeah. So with, with, with a non QM type program, you know, and it’s not the, the crazy subprime stuff from years past. I mean these are truly qualified type deals. So the so one option, Mike, would be we look at bank statements as incom --- Send in a voice message: https://podcasters.spotify.com/pod/show/realestatenewstv/message