Growing number of lenders offer mortgages with more flexible terms

October 6, 2014

The Los Angeles Times shares good news for mortgage seekers who “don’t fit the mold.” A new segment in the mortgage market has begun taking shape for Non-Qualified Mortgages.


Non-QM mortgages don’t adhere to the Qualified Mortgage rules designed to foster safe lending, such as negative amortization and interest-only payments, a 43 percent ceiling for debt-to income ratios, and a limit of 3 percent on total loan fees. One example of a provider of non-QM loans is Impac Mortgage Corp., a public company in Irvine, Calif., that has already made $30 million non-QM loans nationwide in the past couple of months.


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