If you’re self-employed, receive 1099 income, or rely on rental or investment earnings, qualifying for a traditional mortgage can be tough. Non-QM (Non-Qualified Mortgage) loans offer a smart solution — with flexible documentation and custom underwriting that aligns with your real income. Perfect for high-credit borrowers who fall outside conventional guidelines. 

Hard money loans are short-term, asset-backed loans often used for real estate investments, including home purchases, especially when conventional financing isn't feasible. Unlike traditional mortgages, hard money lenders primarily consider the value and equity of the property itself.

Here's how they typically work for home purchases:

• Speed and Flexibility: 

  1. Hard money loans can close much faster than conventional loans, sometimes in a matter of days. 

• Interest Rates and Fees: 

  1. Due to the higher risk, hard money loans come with significantly higher origination fees (points).

• Lower Loan-to-Value (LTV): 

  1. Lenders typically offer a lower LTV, meaning you'll need a larger down payment (e.g., 10-25%+ is common).

• Short Repayment Terms: 

  1. Usually 1 to 3 years. Usually they require a clear exit strategy (e.g., refinancing with a traditional loan or selling the property).

• Use Cases: 

  1. Often used by investors buying fixer-uppers, foreclosures, or properties at auction. Consider it a bridge loan to acquire the property before a long-term solution.

I'll be honest when I say that it's primarily a tool for experienced real estate investors.