What Is a Non-QM Loan? Mortgage Options for Self-Employed & Investors
If you’re self-employed, a real estate investor, or someone with unique income sources, you may have run into challenges getting approved for a traditional mortgage. That’s because most loans fall under Qualified Mortgage (QM) guidelines, which have strict requirements around income verification, debt-to-income ratios, and credit history.
But what if your income doesn’t fit into those boxes? That’s where Non-QM loans come in.
What Is a Non-QM Loan?
A Non-Qualified Mortgage (Non-QM) is any home loan that doesn’t meet the standard guidelines set by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages.
That doesn’t mean they’re risky or bad—it simply means lenders use alternative methods to verify income and assess risk.
Non-QM loans are designed for borrowers who are financially strong but don’t meet traditional documentation rules.
Who Are Non-QM Loans Designed For?
Non-QM loans are popular with:
- Self-Employed Borrowers: Instead of W-2s, lenders may use bank statements, 1099s, or profit-and-loss statements to verify income.
- Real Estate Investors: Programs like DSCR loans (Debt Service Coverage Ratio) allow approval based on rental income instead of personal income.
- High-Net-Worth Individuals: Asset depletion loans let you qualify by using your investment or savings accounts.
- Borrowers with Credit Challenges: Some Non-QM lenders work with recent credit events like bankruptcy or foreclosure, provided you show financial stability.
Benefits of a Non-QM Loan
- Flexible Income Verification
Instead of W-2s, you can use alternative documents like bank statements or rental income. - Access to More Loan Programs
DSCR, bank statement, and interest-only loans give borrowers creative options that traditional lenders don’t offer. - Opportunity to Scale Investments
Investors can leverage Non-QM programs to grow rental portfolios without the limitations of conventional underwriting. - Credit Flexibility
You may qualify even if you’ve had a credit event in the recent past.
Things to Consider
While Non-QM loans can be a powerful tool, it’s important to understand the trade-offs:
- Higher Interest Rates: Non-QM loans often come with slightly higher rates than conventional mortgages.
- Larger Down Payments: Some programs may require 10–20% down or more, depending on the loan type.
- Lender Variety: Not all lenders offer Non-QM loans, so working with an experienced mortgage professional matters.
The Las Vegas Factor
In a city like Las Vegas, Non-QM loans are especially valuable. With so many self-employed professionals, entrepreneurs, and real estate investors, these programs allow buyers to qualify who might otherwise be turned away by traditional banks.
Whether you’re an Uber driver with fluctuating income, a casino worker earning tips, or an investor buying a short-term rental property, Non-QM programs can provide the financing you need.
Final Thoughts
Non-QM loans open the door for self-employed buyers, investors, and anyone who doesn’t fit the traditional lending mold. They’re flexible, creative, and designed for real-world borrowers.
If you’re in Las Vegas and want to explore your mortgage options, reach out to The Derek Parent Team. With years of experience in Non-QM lending, we’ll help you find the right program—whether it’s a bank statement loan, DSCR loan, or another Non-QM option.
Reverse Mortgages Explained: A Retirement Strategy for Homeowners 62+
For many homeowners, their house is their biggest asset. But when retirement comes around, savings may not stretch as far as expected, and fixed incomes can feel tight. That’s why more and more seniors are exploring reverse mortgages as a retirement strategy.
If you’re 62 or older, a reverse mortgage can allow you to tap into your home equity without selling your home or making monthly mortgage payments. Here’s how it works—and why it could be the financial solution you’ve been looking for.
What Is a Reverse Mortgage?
A reverse mortgage is a special type of loan available to homeowners 62 and older. Instead of you making payments to the lender, the lender pays you.
You can receive funds as:
- A lump sum
- Monthly payments
- A line of credit you draw from when needed
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is federally insured.
How It Works
With a reverse mortgage:
- You must continue to live in the home as your primary residence.
- You’re still responsible for property taxes, insurance, and maintenance.
- The loan balance grows over time, and is repaid when you sell, move out, or pass away.
Because no monthly mortgage payments are required, it frees up cash flow during retirement.
Benefits of a Reverse Mortgage
- Supplement Retirement Income
Use your home equity to cover living expenses, medical costs, or even travel. - Stay in Your Home
You don’t need to sell or downsize to access your equity—you can stay right where you are. - Flexibility
Choose how you receive the funds—lump sum, line of credit, or monthly income. - Non-Recourse Protection
You or your heirs will never owe more than the home’s value, even if the loan balance grows larger. - No Monthly Mortgage Payments
This can dramatically reduce financial stress in retirement.
Things to Consider
A reverse mortgage isn’t the right fit for everyone. Here are a few important considerations:
- Home Equity Requirements: The more equity you have, the more you can access.
- Costs & Fees: Like any loan, reverse mortgages have upfront costs.
- Impact on Inheritance: Since the loan is repaid when the home is sold, heirs may receive less.
- Staying in the Home: If you plan to move soon, a reverse mortgage may not make sense.
Who Can Benefit Most?
Reverse mortgages work best for:
- Seniors on fixed incomes who want extra financial flexibility
- Homeowners who plan to stay in their home long-term
- Retirees who want to eliminate existing mortgage payments
- Families who want to preserve other retirement assets by leveraging home equity first
Reverse Mortgage in Las Vegas
In Las Vegas, where home values have appreciated significantly, many retirees have built up substantial equity. Instead of selling, a reverse mortgage lets you enjoy the lifestyle you’ve worked hard for—whether that means helping family, traveling, or simply covering monthly expenses comfortably.
Final Thoughts
A reverse mortgage can be a powerful retirement strategy for homeowners 62 and older. It allows you to convert home equity into usable income while staying in your home and eliminating monthly mortgage payments.
Like any financial decision, it’s important to weigh the pros and cons and talk with a trusted advisor.
If you’d like to explore whether a reverse mortgage is right for you, connect with The Derek Parent Team. We’ll walk you through your options and help you decide if this strategy fits your retirement goals.
First-Time Homebuyer Guide: Buying a Home in Las Vegas
Buying your first home is one of the biggest milestones of your life, and in a city like Las Vegas—where the real estate market moves quickly, neighborhoods each offer a unique lifestyle, and financing options can feel overwhelming—it’s important to have the right guidance.
This guide will walk you through everything you need to know as a first-time homebuyer in Las Vegas. From preparing your finances to choosing the right neighborhood, you’ll see the steps that make your purchase smoother and more successful.
Why Las Vegas is a Great Place for First-Time Buyers
Las Vegas isn’t just the “Entertainment Capital of the World.” Over the last decade, it has grown into a thriving city with family-friendly communities, expanding job opportunities, and a strong real estate market. Here’s why first-time buyers are drawn to Vegas:
- Affordability Compared to Other Major Cities: Prices have risen, but Las Vegas is still more affordable than many coastal markets like Los Angeles or San Francisco.
- No State Income Tax: Nevada has one of the most tax-friendly environments, so homeowners keep more of their income.
- Variety of Communities: You can choose a modern condo on the Strip, a new build in Summerlin, or a quiet neighborhood in Henderson—because the city has something for everyone.
- Strong Job Market: With tourism, technology, and logistics industries growing, the local economy provides stability for homeownership.
Step 1: Prepare Your Finances
Before you start shopping for homes, it’s important to take an honest look at your finances, because being prepared will make the process less stressful.
Check Your Credit Score
Your credit score plays a big role in determining what kind of mortgage you qualify for and the interest rate you’ll receive. Aim for a score of 620 or higher, but some loan programs can work with lower scores.
Save for a Down Payment
Traditionally, buyers put down 20%, but in today’s market, first-time homebuyers have more flexible options:
- FHA loans can require as little as 3.5% down.
- VA loans (for veterans and military families) often require no down payment.
- Conventional loans may allow for 3–5% down.
Get Pre-Approved for a Mortgage
Pre-approval not only shows sellers you’re serious, but it also gives you a clear picture of your budget. A local lender like The Derek Parent Team can walk you through the process and help you choose the right loan for your situation.
Step 2: Understand the Las Vegas Market
The Las Vegas housing market can be competitive, and prices vary depending on location, amenities, and demand.
- Entry-Level Homes: Many first-time buyers start with townhomes or smaller single-family houses.
- New Construction: Builders in Summerlin, North Las Vegas, and Henderson often offer incentives like closing cost assistance, so these can be a great option.
- High-Rise Condos: If you love city living, high-rises near the Strip offer luxury amenities but often come with HOA fees.
Because the market changes quickly, it’s smart to work with a professional who can help you set realistic expectations. You might face multiple-offer situations, so being prepared will give you an advantage.
Step 3: Choose the Right Neighborhood
Las Vegas is made up of diverse communities, and each has its own lifestyle. Here are a few popular areas for first-time buyers:
- Summerlin: Known for its master-planned communities, great schools, and parks. It’s perfect for families and professionals.
- Henderson: Offers a suburban feel with access to Lake Mead, shopping, and family-friendly neighborhoods.
- North Las Vegas: More affordable options with newer builds and expanding amenities, so it’s ideal if you’re looking for value.
- Southwest Las Vegas: Up-and-coming with plenty of new construction and easy access to the Strip.
Think about your lifestyle and priorities. Do you want to be close to work, or do you prefer quiet streets? Do you need great schools, or are amenities more important? Your answers will help narrow your search.
Step 4: Work with the Right Real Estate and Mortgage Professionals
Buying your first home can feel overwhelming, but you don’t have to do it alone. Having a trusted team by your side makes all the difference.
- Realtor: Helps you find properties, negotiate offers, and guide you through closing.
- Mortgage Lender: Assists with financing options, pre-approvals, and making sure your loan closes smoothly.
- Home Inspector: Ensures your home is in good condition before you buy.
At The Derek Parent Team, we specialize in helping first-time buyers navigate financing options in the Las Vegas market. Because we’ve been in the industry for decades, we know how to make the process simple and stress-free.
Step 5: Make an Offer
Once you’ve found the right home, it’s time to make an offer—and strategy is everything.
- Be Competitive: In a hot market, lowball offers often get rejected.
- Include a Strong Pre-Approval Letter: This reassures the seller you’re financially ready.
- Consider Seller Incentives: Builders and sellers sometimes offer credits toward closing costs, so ask your agent to negotiate these for you.
Step 6: Closing the Deal
The closing process typically takes 30–45 days. During this time, you’ll:
- Finalize your mortgage paperwork
- Complete inspections and appraisals
- Sign your closing documents
It can feel like a lot, but once you’re done, you’ll officially get the keys to your new home.
Tips for First-Time Homebuyers in Las Vegas
- Don’t Skip the Inspection: Even if the home looks perfect, inspections can reveal costly issues.
- Know Your Budget Beyond the Mortgage: Property taxes, HOA fees, and utilities all add up, so plan ahead.
- Think Long-Term: Buy a home you can grow into, not just one that works for right now.
- Stay Flexible: The right home might not check every single box, but it should meet your most important needs.
- Leverage First-Time Buyer Programs: Nevada offers down payment assistance and other incentives, so take advantage if you qualify.
Final Thoughts
Buying your first home in Las Vegas is an exciting step, and with the right preparation, it doesn’t have to feel overwhelming. The city has a strong economy, a wide range of neighborhoods, and flexible financing options—so there’s truly something for every type of buyer.
The key is preparation: understanding your finances, working with trusted professionals, and knowing what to expect in the market.
If you’re ready to take the next step, connect with The Derek Parent Team. We’ll guide you through the process, answer your questions, and help you secure the right loan for your first home in Las Vegas.
Gifting a Home
Are you planning on gifting a home to someone this holiday season? For most people, a gift this generous is probably out of the question. But maybe you had a good year financially, and a family member needs the help. Whatever the case is, here are some guidelines when it comes to giving the gift of real estate.
Buying a new home outright
Instead of buying a new home outright, it may be wise to gift the cash for the home, NOT the home itself. Everyone has their own preferences when it comes to what they want in a home, so allowing the recipient of your generous gift to choose their home is probably a much safer idea.
We highly recommend running this by your accountant, as you may also need to file a gift tax return.
Gifting the down payment
Gifting money for a down payment works in pretty much the same way—except when it comes to the mortgage. If there’s even the slightest hint that the money is a loan rather than a gift, it can hinder the recipient’s ability to get a mortgage.
You’ll want to work closely with the recipient’s lender to file the appropriate paperwork, which will include a verified gift letter certifying the funds are a gift, not a loan. The lender will also likely need to examine your finances to determine if you’re able to gift. And remember, most lenders won’t permit gifts from nonfamily members.
Gifting an existing home
Would your children love to own the home they grew up in? Unfortunately this is a poor option, especially if both parents are still living.
One of the tricky struggles with gifting a home you own is the differential between the cost basis (what you first paid for the house) and the current fair market value—which could be hundreds of thousands of dollars, depending on how long you’ve owned it and the appreciation in the area.
This might not matter if your children plan to live in the home forever: The gift will be subject to your gift tax limit, and they’ll only pay capital gains tax if they sell. But if (and, likely, when) they sell, they’ll be stuck paying taxes on the difference.
If you’re determined to gift someone a home this holiday season, remember to keep these guidelines in mind. It IS possible, but of course it’s extremely important to consult your accountant and/or financial advisors to ensure it’s done in the right way.
Debt vs. Income: What You Need to Know
Income is a crucial component lenders consider when granting you a mortgage. However, income is not all that a lender will consider when determining how much you qualify for. They will also look at your debt to income ratio, in addition to other financial indicators.
If you make a lot of money but also have a lot of debt, this could be a red flag to lenders and reduce your borrowing capacity.
How debt & income affect your mortgage
Income and debt are yin and yang, opposites of each other. Debt is a liability, whereas the more income you have, the more power you have to make those liabilities go away. Having more income also gives more control of the following.
- It allows you to prepay your mortgage faster.
- It allows you to qualify for more when buying a home.
- It allows you to move into a shorter and more aggressive debt pay-down structure such as a 15-year fixed-rate mortgage.
- It allows you to pay off your credit cards in full every month, rather than paying unnecessary and pricey interest (assuming you’re making smart financial choices).
- It allows you to consume smart debt, such as purchasing a rental property that can generate even more income.
- It allows you to make investments, generating more income.
- It allows you to save and plan for the future.
Having this control over these and other financial choices is precisely why it is CRUCIAL to carry a debt-to-income ratio no bigger than 36% of your gross monthly income. The goal when borrowing mortgage money is to put yourself in a position where you can have a life beyond paying it off, while still saving and contributing to your retirement savings.
What you need to consider before you buy
Always remember it takes $2 of income to offset every $1 of debt for a 2:1 ratio for mortgage qualifying purposes.
If you want that fancy Mercedes at an $800 per month car payment, then you’ll need $19,200 a year in extra income or you’ll need to cut a current debt payment of $800 to balance your debt-to-income ratio.
If you want the dream house at $3,500 month, then aim your debt-to-income ratio at 36%—meaning you would ideally want income at $117,000 a year without carrying other consumer obligations in order to afford this mortgage.
When you are thinking about buying a home, also remember to consider what the future holds for your finances. For example, if your monthly expenses will likely increase in the future due to expenses like childcare costs or college tuition, this is something important to keep in mind. By keeping your debt to income ratio below 36% of your gross monthly income, you’ll put yourself in a position to enjoy your new home but also be able to continue saving for your future.
Why The Holidays are a Great Time to Refinance Your Mortgage
If you're a homeowner in Las Vegas and you want to lower your mortgage payment and/or consolidate your debt, then refinancing might be the right option for you!
So how does it Work?
Well, its not always that simple. There are many factors that determine if refinancing is right for you, such as interest rates and your current equity in your home. It also depends on what your current needs are. Do you want to lower your monthly payments and interest rate? Or do you want to cash out to consolidate your debt in time for the holiday season? There are different types of refinancing options to choose from.
The traditional refinance option allows you to get a new mortgage with a different interest rate and terms. This could help you lower your monthly payment and start saving! Interest rates fluctuate, meaning they go up and down. So, there's a chance that you can get a lower rate on your mortgage and start saving money every month! Note that when you refinance your mortgage you are starting from the beginning of the set terms. For example, if you are 5 years into a 30 year mortgage and you choose to refinance to get a lower rate or payment, you will start at the beginning of the term of the new loan. So, your total finance charges may be higher over the life of the loan.
The other option is a cash-out refinance - This is where you refinance your mortgage for more than you currently owe, then pocket the difference. Sounds great, right? Well, there are many factors that go into the process of cash-out refinancing. For example, you will need to apply and submit various documents, get an appraisal on your home, and have a good standing with your current mortgage for the past 12 months. However, if you qualify, cashing out is a great way to consolidate your debt and put more money in your pocket during the holiday season! Please note that when you do a cash out refinance, you are not eliminating your debt. You are consolidating it through your mortgage and will pay it off through your monthly loan payment.
The good news is that the Las Vegas real estate market is booming! Interest rates are competitive, and home values are increasing. That means that the majority of home owners have equity in their homes. You could take advantage of the our refinance options and lower your monthly payments, in addition to "cashing out" the difference.
If you are a homeowner in Las Vegas and you would like to take advantage of our refinance opportunities this holiday season, give us a call at 702-331-8185!
Unexpected Homebuying Roadblocks
Your offer has been accepted on your dream home and you have a down payment, good credit, and little debt. So the escrow process should be a breeze, right? WRONG! There are some surprising deal breakers that can quickly cause the transaction to go south. Here are a few of the most common ones.
Closing Lines of Credit
Maybe you’ve realized you have a few more credit cards than you’d like your lender to see. Time to shut ’em down before they check your credit, right? Not so fast. Closing down multiple accounts could actually ding your credit. Credit is composed of a few key components, the age of an opened account being one biggie. Shutting down multiple accounts will also lower your credit utilization rates, which can be yet another credit killer. Research the impact of any change to your credit before taking action.
Not Calculating the True Cost of your Mortgage Payment
The cost of homeownership goes far beyond a monthly mortgage check. There are HOA fees, maintenance costs, PMI, etc. Make sure you’ve calculated — and recalculated — whether the cumulative costs will be feasible. You don’t want a nasty surprise when you finally crunch your numbers and realize they don’t fit within your current financial circumstances.
Forgetting Maintenance Costs
Remember that you’ll have to spend much more time and money on the dream house with a pool in the backyard. If you simply don’t have the budget for a home with a pool, communicate this to your agent before you start looking at houses. The last thing you want is to end up falling in love with a home you simply can’t afford to maintain.
Assuming Fixtures are Part of the Deal
Make sure you and the seller agree on exactly what will be included — and what the seller will be taking to their new home sweet home. Things such as light fixtures are often assumed to be a part of the package, but if it’s an heirloom chandelier from the seller’s grandma, chances are they’ll consider it fair game to take when they go. Set out clear expectations of what’s staying and what’s going to avoid any confusion or upset.
Buying a home can be stressful, but with a little preparation (and the right lender and real estate agent) things can go relatively smoothly. No matter what happens, remember to stay flexible. Some things may arise that are out of your control. How you respond can ultimately sway the outcome — and hopefully get you the house of your dreams!
Why it is Good to Buy Now in Las Vegas
Are you wondering if now is the right time to buy in Las Vegas? Still on the fence or a bit unsure? Want
some more information before diving in? Here is some information to know before moving forward.
If you want to get in on the fun, now is a better time than ever. With today's shift towards a buyer's
market, buyers have more options to choose from and negotiate leverage. Because of this, you can find
your dream home without paying over market value, even less! Compared to previous situations of
bidding wars and over-asking, the moment is now to get in. Not to mention the constant increases in
value, you can find yourself making a substantial profit in the coming years.
Unlike renting, mortgage inflation doesn't go up, rent goes up, and the rent gets competitive. So, with less
competition than ever, you have a prime opportunity in your hands. The only question left is, to buy or
not to buy?
Derek Parent Q&A: High Rise Life
- Can you tell us a little bit about your background and how you got involved in the mortgage industry? I stepped into the mortgage industry in 1999 after running into an old friend at a boat show in Rhode Island. It had been a little while since I had seen him last, and there was just something about him that seemed different. We got to talking, and I found out that he was doing quite well for himself as a loan officer in the mortgage industry. I was so inspired, that every day for the following four weeks, I called into his office asking for an interview. I got the job, and just about a year later, I won a trip to Las Vegas based on my efforts. I was stunned. I went back home, grabbed my stuff, bought a one-way ticket back to Vegas and never looked back.
- What do you think has contributed to your success as an expert high-rise lender? Honestly, one of the reasons I became so intrigued with the high rise market was because of my own experience. When I purchased a condo for myself on the Las Vegas strip, I realized just how difficult it was to finance the high rise units. It was a nightmare, so when I closed, I made it my mission to solve the problem. It should not have been that difficult, and I wanted to make sure that I used every resource at my disposal to ensure that no one else had to go through the same thing.
- What do you love most about what you do? The one thing--beyond anything else--that has motivated me to be great at what I do is the satisfaction I get from helping my clients purchase their homes. Yes, there are other rewards in this business, but there is nothing that affects the way I sleep like knowing that I have a small hand in such a large part of my clients’ lives.
- What are some of the core values that the Parent Team carries? No business is sustainable without a strong foundation, and our core values are insanely important to the way we run our business and the way we treat our people. Specifically, we the core values that we live by: honesty, integrity, communication, client-focus and consistency. These qualities are what keep us motivated and grounded as we deal with our success and our frustrations, and they are the reason we have been able to maintain our quality of business over the years.
- You have a growing list of over 125 condo projects available for financing. Can you elaborate on this? The reason that growing list is so important is because our definition of ‘approval’ is so much deeper than most other sources. We do our due diligence in advance rather than during the transaction, which negates a lot of frustration and fall out with the client. One measure that we really look at is having a completed questionnaire and analysis of the condo project before we list it as ‘approved’. In the lending world, the condo questionnaire is a vital piece to knowing whether or not a condo can be financed, and because we do it in advance, the client is able to have full confidence in their purchase.
- What are some of the great promotional offers you currently have for those looking to purchase a high-rise condominium? The most important thing we have right now is that the buyer does not have to pay for their condo questionnaire, which is anywhere from about $200 to $500. Generally, it’s a cost that lenders require the buyer to pay for just to obtain information about the project for the lender. If for some reason the questionnaire details information that does not allow the lender to lend on the property, the buyer loses that money. We take that responsibility off of the buyer because we have already obtained the information from the condo project. Another great offer is that we allow buyers to purchase with only 5% down payment for their principal residence, and for second homes, we only require 10% down. We also provide an option for 10% down payment on jumbo loans.
- What are some essential points homebuyers should address when shopping for a loan? In the high-rise market, the number one thing that buyers should be aware of is if the lender requires them to pay for a condo questionnaire. If the lender is not confident enough to pay for it, there is a large possibility that they cannot finance the condo, and again, if that’s the case, the client will not be refunded and absorbs the cost. Other than that, I would say communication from your loan officer is the second most important factor. It not only makes the process easy, but it ensures your ability to get an offer accepted on the home you want because it gives the real estate agents confidence that the transaction will be smooth and close on time.
- Any exciting new developments with the Parent Team that you would like to share with us? For us, it really starts with our people; we bring on team members that not only bring a lot of value but also add amazing energy. Just recently, we brought on a business development specialist who is dedicated to growing our footprint and building new professional relationships, and we are extremely excited to see what it does for our growth. It has the potential to really extend our reach and allow us the opportunity to help more people accomplish the goal of home ownership.