Non-QM Mortgage Navigator
Owner-Occupied vs Investment Non-QM
Occupancy changes the underwriting framework. An owner-occupied consumer-purpose Non-QM loan is not the same transaction as a business-purpose investment-property loan, even when the same lender offers both.
Owner-occupied
Consumer-purpose loans may require an ability-to-repay analysis and consumer disclosures that do not map directly to business-purpose investment products.
Investment property
Some investment loans may qualify using property cash flow, such as DSCR, rather than the borrower's personal income, subject to the investor's program.
Second homes
Second-home treatment is product-specific and should not be assumed to follow either owner-occupied or investment rules.
Classify the transaction first
Purpose and occupancy should be established before applying a product matrix.
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.