Loan Comparison
Conventional loans follow Fannie Mae and Freddie Mac rules exactly, which is why they are cheap and why they reject good borrowers who fall outside the guidelines. Non-QM loans are underwritten by private investors with their own rules — designed for self-employed borrowers, investors, recent credit events, and complex income.
| Non-QM Loan | Conventional Loan | |
|---|---|---|
| Guidelines | Investor-specific and flexible | Strict Fannie Mae / Freddie Mac rules |
| Income documentation | Bank statements, assets, 1099s, or rental income | Two years of tax returns, W-2s, and paystubs |
| Credit event seasoning | As little as 1–2 years after bankruptcy or foreclosure | 4–7 years typically required |
| Debt-to-income limits | Can exceed 50% | Generally capped near 45–50% |
| Down payment | Typically 10–25% | As low as 3% |
| Rates | Higher, priced to the risk profile | Lowest available pricing |
| Best for | Self-employed, investors, recent credit events, complex income | Documented income that fits agency guidelines |
Always test conventional first — if your file fits, nothing beats agency pricing. When it does not, Non-QM is not a consolation prize, it is a different tool: it gets you into the property now, and refinancing into conventional later is a common two-step plan we map out from day one.
Still Deciding?
We'll price both programs with your actual numbers and show you the payment, cash to close, and long-term cost side by side — no credit pull required.
Questions
They are not the subprime products of 2008. Non-QM loans still require verified ability to repay, meaningful down payments, and reserves. The difference is how income is documented, not whether it is documented.
It depends on your credit, down payment, and documentation type, but expect pricing above conventional. Many borrowers treat it as short-term financing and refinance once they qualify for agency terms.
Some programs allow financing as little as one day out of bankruptcy or foreclosure with sufficient down payment, versus four to seven years of waiting for conventional.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.
Ready When You Are
One application, multiple wholesale lenders, and a licensed loan officer who explains the tradeoffs before you commit.