Non-QM Loan

Unlocking Opportunities: A Guide to NON-QM Loans with Nexos Invest

May 21, 2025

Best Fix-and-Flip Financing Options in 2025: Fueling Your Florida Real Estate Success

Unlocking Opportunities: Your Comprehensive Guide to NON-QM Loans in Florida with Nexos Invest

The world of mortgage lending is often perceived as a rigid landscape, governed by strict rules and standardized qualification criteria. For many aspiring homeowners and real estate investors in Florida, traditional (Qualified Mortgage or QM) loans can present insurmountable hurdles, especially for those with non-traditional income, unique employment situations, or less-than-perfect credit histories. This is where NON-QM loans, or Non-Qualified Mortgages, step in as a vital and flexible alternative.

At Nexos Invest, we recognize that a one-size-fits-all approach doesn’t work for everyone in Florida’s dynamic and diverse economy. We are committed to providing innovative lending solutions, and NON-QM loans are a cornerstone of this commitment, opening doors for borrowers who might otherwise be locked out of property ownership or investment. This guide will demystify NON-QM loans and illustrate how Nexos Invest can help you navigate this flexible financing path.

What Exactly is a NON-QM Loan?

A Non-Qualified Mortgage (NON-QM) is any home loan that doesn’t meet the strict consumer protection criteria set forth by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages. QM rules were established to create safer loans with stable features. However, these rules can inadvertently exclude perfectly capable borrowers whose financial profiles don’t fit neatly into the conventional box.

NON-QM loans are NOT subprime loans. This is a common misconception. While subprime loans of the past were often characterized by risky features and lax underwriting, today’s NON-QM loans are underwritten responsibly, focusing on a borrower’s ability to repay, albeit through more flexible documentation and qualification methods.

Key characteristics that might classify a loan as NON-QM include:

Alternative Income Verification: Using bank statements, asset depletion, or property cash flow (like DSCR loans) instead of traditional W-2s and tax returns.
Interest-Only Payment Options: Allowing for lower initial payments.
Higher Debt-to-Income (DTI) Ratios: Accommodating borrowers with more existing debt, provided they have strong compensating factors.
Credit Events: Considering borrowers with past credit issues like bankruptcies or foreclosures, provided they have re-established good credit.
Loans for Foreign Nationals or ITIN Borrowers: Catering to individuals without a Social Security Number.

Who Can Benefit from NON-QM Loans in Florida?

Florida’s diverse population and entrepreneurial spirit make it a prime market for NON-QM lending. Here are some common borrower profiles who find NON-QM loans particularly advantageous:

Self-Employed Individuals & Business Owners:
- Often have complex income structures with significant write-offs that reduce taxable income, making it hard to qualify based on traditional tax returns.
- NON-QM Solution: Bank statement loans (using 12 or 24 months of business or personal bank statements to determine income) are a popular NON-QM option.
Real Estate Investors:
- May own multiple properties, making DTI calculations complex for QM loans.
- Want to qualify based on a property’s income potential rather than personal income.
- NON-QM Solution: Debt Service Coverage Ratio (DSCR) loans are ideal. A DSCR loan qualifies the borrower based on whether the rental income from the property will cover the mortgage payment (principal, interest, taxes, and insurance – PITI). A DSCR greater than 1 means the property generates more income than its debt obligation. Nexos Invest offers competitive DSCR loans for Florida investors.
Gig Economy Workers & Freelancers:
- Income can be variable and come from multiple sources, making traditional verification challenging.
- NON-QM Solution: Bank statement loans or asset qualifier programs can be effective.
Individuals with Recent Credit Events:
- May have recovered from a bankruptcy, foreclosure, or short sale but don’t meet the extended waiting periods required for QM loans.
- NON-QM Solution: Some NON-QM programs have shorter waiting periods after significant credit events, provided there’s a strong overall financial profile and a good explanation for the past event.
Foreign Nationals & ITIN Borrowers:
- Non-US citizens or those without a Social Security Number often cannot qualify for QM loans.
- NON-QM Solution: Specific NON-QM programs are designed for foreign nationals investing in U.S. property or for borrowers using an Individual Taxpayer Identification Number (ITIN).
Borrowers Seeking Interest-Only Payments:
- Desire lower initial monthly payments to improve cash flow, especially for investment properties or during the initial years of homeownership.
- NON-QM Solution: Interest-only NON-QM loans allow borrowers to pay only the interest portion of their mortgage for a set period.
Jumbo Loan Borrowers Needing Flexibility:
- Those seeking loan amounts above conventional conforming limits might find NON-QM jumbo loans offer more flexible underwriting than traditional jumbo products.

Advantages of NON-QM Loans with Nexos Invest

Choosing a NON-QM loan opens up possibilities, and partnering with Nexos Invest offers distinct advantages for Florida borrowers:

Tailored Solutions: We don’t believe in forcing square pegs into round holes. Our team takes the time to understand your unique financial picture and goals to find the NON-QM program that best fits your needs.
Local Market Expertise: As a Florida-based lender (Aventura, FL), we have an in-depth understanding of the local real estate market and the diverse financial situations of its residents.
Responsive Service & Fast Closings: While NON-QM underwriting can be detailed, we strive for efficiency. Our recent press release on expanding lending capabilities emphasizes our commitment to “responsive service, transparent terms, and fast closings.”
Wide Range of NON-QM Products: We aim to offer a comprehensive suite of NON-QM options, including:
- Bank Statement Loans
- DSCR Loans for Investors
- Asset Qualifier Programs
- Interest-Only Options
- Solutions for Foreign Nationals (subject to eligibility)
Focus on Ability-to-Repay: Our underwriting process, while flexible, is always grounded in responsibly assessing your ability to manage your mortgage obligations.

Navigating the NON-QM Application Process

While more flexible, applying for a NON-QM loan still requires thorough documentation. The specifics will vary based on the loan type:

For Bank Statement Loans: Be prepared to provide 12-24 months of clear, consistent bank statements.
For DSCR Loans: Property details, lease agreements (if applicable), and market rent analysis will be key.
For Asset Qualifier Loans: Documentation of eligible assets (retirement accounts, stocks, bonds, cash) will be needed.

It’s crucial to work with a knowledgeable loan officer who can guide you through the specific requirements of the NON-QM program you’re applying for.

Is a NON-QM Loan Right for You?

If you’re a Florida resident or investor who has found traditional mortgage avenues closed, a NON-QM loan could be the key to unlocking your property goals. These loans are designed for capable borrowers with unconventional circumstances, offering a pathway to homeownership or real estate investment that acknowledges the diverse ways people earn and manage their finances in the 21st century.

The team at Nexos Invest is passionate about helping Floridians achieve their real estate dreams. We believe in the power of flexible, common-sense lending.

Don’t Let Traditional Lending Barriers Hold You Back in Florida!

Are you self-employed, a real estate investor, or have a unique financial profile? A NON-QM loan from Nexos Invest could be your solution. We offer flexible underwriting and a range of NON-QM programs to fit your specific needs.