How Four Exotic Mortgages Can Help Unconventional Borrowers

Orange County (Calif.) Register, Sept. 4, 2025-Jeff Lazerson
If you don’t fit the Fannie Mae/Freddie Mac conventional box, there is an alternative, exotic loan avenue, the so-called non-QM or non-qualified mortgage channel that just might get you home.

Lenders in the exotic mortgage space consider alternative income documentation to tax returns and the like — or even no income. Larger down payments or more equity (than Fannie Mae/Freddie Mac) are standard in a refinance. These loans carry higher interest rates than the mortgage giants due to the increased risk of not knowing for certain what the income is (like tax returns).

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