How do Qualified Mortgage Loans differ from Non-Qualified ones in Phoenix? If you’re looking for a home loan but aren’t sure where you should start, you’ll probably hear the terms “qualified mortgage loans” and non-qualified mortgage loans.” So what exactly is the difference between these two types of loans? Here is a quick explanation: Qualified mortgage loans provide lenders with certain legal protections once they can show that you’re financially able to repay your loan. There are stricter guidelines for these types of mortgage loans that were put in place to protect homebuyers and reduce the risk of default. Under their guidelines, interest-only payments or balloon payments aren’t allowed. In addition to the limits placed on upfront fees and points, the guidelines establish how much of the buyer’s income can go towards their mortgage debt. Non-qualified mortgage loans are loans that don’t meet the criteria of qualified loans. These are non-traditional loans that are ideal for home buyers whose income fluctuates, is paid in a lump sum, or who are self-employed as independent: ● actors ● artists ● business owners ● contractors ● entrepreneurs ● hospitality workers ● musicians ● retire While non-qualified mortgage loan borrowers may have sufficient income, they may not qualify for a traditional home loan with their bank account statements, Federal and State income tax returns, pay stubs, or W-2’s. https://www.google.com/maps?cid=6744959272592205627