NonQM loans offer flexibility for lenders to offer mortgages to people who don’t fit the criteria of QM loans, but lenders still need to do the work of verifying the information provided. Lenders must verify and document anything that supports the borrower’s ability to repay. This includes income sources. Lenders may also want to verify assets or anything else that gives them assurance the borrower can repay the loan.
NonQM loans aren’t insured, guaranteed or backed by the FHA, VA, Fannie Mae or Freddie Mac.