Why a ‘liar loan’ is one easy option for self-employed homebuyers

Today I want to give you a flavor of the exotic mortgage world otherwise known as non-QM or non-qualified mortgages.

These are purchase and refinance loans for borrowers — be it owner-occupied, second homes or investment properties — who don’t fit the conventional mortgage box from the likes of Fannie Mae and Freddie Mac.

Let’s start with the simple profit-and-loss mortgage. Industry parlance calls these liar’s loans.

Also see: California house investors target most-affordable counties

I kid you not...