Non-QM Mortgage Navigator
Non-QM Investor Rules vs Lender Overlays
Private mortgage programs are especially vulnerable to the phrase 'Non-QM doesn't allow that.' In many cases, the actual restriction belongs to one investor, one lender or one product matrix.
Investor guideline
The investor defines the product's core eligibility and underwriting matrix.
Lender overlay
A lender may choose to be more restrictive than the investor's published eligibility.
Operational limitation
A lender may also decline a scenario because it does not offer that investor or cannot operationally support the transaction.
Ask the better question
Is this prohibited by law, prohibited by the investor, restricted by this lender, or simply outside this lender's available products?
MortgageDadOf3 guardrail: Non-QM is not one universal guideline. Exact credit, LTV, DTI, reserves, documentation, property, pricing and state eligibility can vary by lender, investor and product. Consumer-purpose loans also remain subject to applicable federal and state law.