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Home Mortgage Loan Programs

When planning to purchase a home or refinance an existing mortgage, one of the most important decisions is choosing the loan program that best fits your financial situation. In the United States, there are many different mortgage programs available, and the options you qualify for can vary based on factors such as your credit score, income type, down payment, and property type.

 

When applying directly with a mortgage bank, approval is typically based on whether you meet that bank’s specific underwriting guidelines, including income, tax returns, credit score, and other qualifications. However, if you do not meet their requirements or have unique financial circumstances, your loan application may be denied if the bank offers only a limited range of programs. In such cases, you may need to start the process over with another lender, resulting in lost time and potentially multiple credit inquiries.

 

At Loan Factory, we work with over 200 lenders and offer not only traditional QM (Qualified Mortgage) programs but also a wide variety of Non-QM mortgage solutions.

 

We help identify the loan program that best matches your income structure, assets, credit profile, down payment, and property type. We also compare interest rates and fees from multiple lenders offering the same program, allowing you to choose the most competitive financing option available.

🔶 Loan Factory

Access to 200+ Lenders for Comparison
One of America's Top Mortgage Brokerages

🔶 Wide Range of Loan Programs

Offering Various QM and Non-QM Mortgage Solutions

🔶 One Credit Pull

Minimize Credit Inquiries
Reduce the Risk of Multiple Loan Denials

🔶 Free Consultation

Terry Kwon
Mortgage Loan Officer
(631) 624-4480

QM vs. Non-QM Mortgage Loans

In the United States, home mortgage loans generally fall into two main categories: QM (Qualified Mortgage) and Non-QM (Non-Qualified Mortgage).

 

 
QM (Qualified Mortgage)

A QM mortgage is a traditional home loan that is underwritten using standard income documentation such as W-2s, pay stubs, tax returns, and other conventional financial records.

These loans typically follow the guidelines established by government-backed agencies or conform to the requirements of Fannie Mae and Freddie Mac. As a result, QM loans are the most common mortgage products available in the market.

Most QM programs require a minimum down payment of 3%, depending on the loan program and borrower qualifications.

 

 

Non-QM (Non-Qualified Mortgage)

A Non-QM mortgage is designed for borrowers who may not meet traditional QM lending guidelines. These programs offer more flexible underwriting standards and alternative methods of income verification.  Most Non-QM programs require a minimum down payment of 10%, although requirements may vary by lender and loan program.  Because qualification guidelines are more flexible, Non-QM loans can be an excellent solution for:

 

  • Self-employed borrowers
  • 1099 independent contractors and freelancers
  • Real estate investors
  • Business owners with complex income structures
  • Borrowers who recently started a business
  • Individuals with non-traditional income sources

Non-QM programs can be used for:

 

  • Home Purchases
  • Mortgage Refinances
  • Home Equity Financing

 

✅ QM Mortgage

      • Ideal for W-2 employees and borrowers with traditional income documentation
      • Lower interest rates in most cases
      • Minimum down payment as low as 3%
      • Standard underwriting guidelines

✅ Non-QM Mortgage

      • Ideal for self-employed borrowers, freelancers, investors, and borrowers with unique financial situations
      • Flexible qualification requirements
      • Alternative income documentation accepted
      • Typically requires at least 10% down payment
 
Which Program Is Right for You?

The best mortgage program depends on your income structure, credit profile, assets, down payment, and financial goals.

 

💡 QM loans generally offer lower interest rates, while Non-QM loans provide greater flexibility for borrowers who may not qualify under traditional lending guidelines.

Conventional QM Mortgage

Traditional Qualified Mortgage (QM) Home Loan

  • Competitive Low Interest Rates
  • Down Payments Starting as Low as 3%
  • First-Time Homebuyer Programs Available
  • Ideal for borrowers with stable income and strong credit profiles
Read More

FHA Loan

  • Designed for borrowers with lower credit scores or limited down payment funds
  • Backed by the Federal Housing Administration (FHA)
  • Home renovation costs may be included through the FHA 203(k) Program
Read More

VA Loan
Veterans Affairs Mortgage Program

  • No Down Payment Required
  • Flexible Credit Guidelines (Typically 580+ Credit Score)
  • Among the Lowest Mortgage Interest Rates Available
  • Available to Active-Duty Military, Veterans, and Eligible Surviving Spouses
  • Guaranteed by the U.S. Department of Veterans Affairs

USDA Loan
U.S. Department of Agriculture Mortgage Program

  • No Down Payment Required
  • Available in Eligible Rural and Low-Population Areas
  • Primary Residence Only (Not Available for Investment Properties)
  • Offered through the U.S. Department of Agriculture (USDA)
  • Must Meet Income and Property Eligibility Requirements

AI-Powered Automated Mortgage Program

  • Lower Interest Rates: 100 BPS Better Pricing
  • Fast Closing: 20–30 Days
  • Designed for W-2 Income Borrowers
  • Conventional Loans – Fixed Rate & ARM Available
  • Jumbo QM Loans – Fixed Rate & ARM Available
Read More

Non-QM Mortgage Programs

Self-Employed & 1099 Borrowers

  • Designed for self-employed individuals and 1099 freelancers
  • Ideal for borrowers whose tax return income is lower than their actual cash flow
  • Alternative income documentation available

Income Verification Options

Business Bank Statement Loans

  • Income is calculated using the most recent 12 or 24 months of business bank statements

P&L Loans

  • Income is verified using a Profit & Loss Statement (P&L) prepared by a CPA or tax professional
Read More

Investment Property
DSCR Loan

  • No Tax Returns Required
  • Qualification based on rental income rather than personal income
  • Available under an LLC ownership structure
  • Designed exclusively for investment properties
  • Multiple investment properties may be owned and financed
Read More

ITIN Loan
Without a Social Security Number

  • Homeownership is possible even if you are not a U.S. citizen or permanent resident
  • Available to borrowers with an ITIN (Individual Taxpayer Identification Number)
  • Eligible for primary residence purchases
  • Borrowers without an SSN may qualify using an ITIN and proof of income
Read More

Foreign National Mortgage

Home Financing for International Buyers

  • Available to borrowers residing outside the United States
  • U.S. income is not required
  • Qualification based on foreign income and assets
  • Eligible for investment property purchases
  • Eligible for second homes and vacation properties
Read More

Low Credit
Non-QM Mortgage

  • Non-QM mortgage program for borrowers with lower credit scores
  • Minimum credit score starting at 500
  • First-time homebuyers eligible with a minimum 580 credit score
  • Ideal for borrowers with sufficient income but lower credit scores
  • Available for primary residences
  • Eligible for home purchases, refinances, and cash-out refinances
  • Maximum LTV (Loan-to-Value): 60%–65% (program guidelines apply)
  • Maximum DTI (Debt-to-Income Ratio): 45%
  • Eligible property types include single-family homes, condominiums, townhomes, and 2–4 unit multifamily properties

No Income Verification Mortgage

  • No income or employment verification required
  • Available for primary residences and second homes
  • Minimum credit score: 620
  • Up to 55%–80% LTV
  • Purchase, refinance, and cash-out refinance
  • Single-family homes, condos, townhomes, and 2–4 unit properties
  • Available for first mortgages and second-lien home equity loans
  • Second HELOC: Minimum credit score 700
  • Second HELOC: Up to 60% CLTV (Combined Loan-to-Value)

Asset Depletion Mortgage

  • Qualify using your assets instead of income
  • Assets are converted into qualifying monthly income
  • Ideal for borrowers with substantial assets but little or no current income
  • Assets are typically calculated over 48–72 months 

Eligible Assets:

✅ Checking Account

✅ Savings Account

✅ Money Market Account

✅ Certificate of Deposit (CD)

✅ Brokerage Account (Stocks, ETFs, Mutual Funds)

✅ Retirement Accounts (401(k), IRA, etc.)

✅ Trust Accounts (Available with some lenders)

✅ Other liquid assets

Doctor Mortgage Program

  • QM and Non-QM mortgage options for physicians and other medical professionals
  • Up to 100% financing (subject to program guidelines and borrower qualifications)
  • No PMI (Private Mortgage Insurance) required
  • Loan amounts up to $2,000,000 (varies by program)
  • Flexible underwriting for physicians, dentists, veterinarians, and other eligible medical professionals
  • Eligible using an employment contract or future income
  • Available for 1-unit primary residence purchases and rate-and-term refinances

Milestone Point Inc. In partnership with Loan Factory Inc. (NMLS #320841)
Licensed Mortgage Loan Officer: Terry Kwon (NMLS #2620208)

Residential Mortgage Licensed: AL, CA, CO, GA, IL, ME, NJ, NV, OH, PA, TX, VA, WA

Contact: (631) 624-4480
Email: terry@milestonepointinc.com
Milestone Point, Inc: 200 Garden City Plaza, Suite 215, Garden City, NY 11530

Loan Factory: 2195 Tully Road. San Jose, CA 95122

 

Disclaimer:
Loan approval is not guaranteed. Approval is subject to credit, income, assets, and other underwriting criteria.
Rates and terms are subject to change without notice.
Milestone Point Inc. partners with Loan Factory Inc. to provide access to multiple mortgage products.
All mortgage programs are offered through licensed mortgage brokers/loan officers registered with the NMLS.