Hard Money and Non-QM Lending Products

Hard Money refers to lending products that require little up-front verifications. Often these programs have limited credit and income requirements, and in some cases do not require any specific credit score at all. These programs are generally best suited for well-versed investors and those looking to enter the field of real estate investing. Fees and costs tend to be high, so these products will generally ask for a 20-25% down payment for purchase transactions.

Non-QM refers to mortgage products that fall outside of the "QM" (Qualified Mortgage) requirements. Meaning that the underwriting guidelines will allow for more flexibility than a standard Conventional, FHA, or VA home loan. Lower credit score requirements, limited documentation requirements, and extra underwriting flexibility can make these programs attractive in certain situations. However as with Hard Money products, these Non-QM programs will generally have higher closing costs and interest rates than standard home loan products.