Ready to Move Up to Your Next Home? These Non-QM Loan Options Could Be the Key
Are you a current homeowner who’s ready to level up — more space, better neighborhood, dream home — but the traditional mortgage process is standing in your way?
Whether the obstacle is your income type, your immigration status, the timing of your current home’s sale, or simply today’s interest rates, there are flexible loan programs designed specifically for move-up buyers like you. They’re called non-QM loans, and they’re more accessible and more powerful than ever.
Here’s what you need to know — and which program might be the right fit for your situation.
What Is a Move-Up Buyer?
A move-up buyer is someone who already owns a home and is looking to purchase a larger or higher-priced property. You’ve built equity, your life has changed, and your current home no longer fits your needs. The challenge? Moving up often comes with complications that conventional mortgages aren’t built to handle.
Maybe you’re self-employed, a foreign national, or an ITIN holder. Maybe you need to buy your next home before your current one sells. Maybe today’s rates are making your new monthly payment feel out of reach. Non-QM loans address all of these scenarios — with flexible underwriting that looks at your full financial picture instead of a checklist.
Bridge Loans: Buy Your Next Home Before Selling Your Current One
This is one of the most common — and most stressful — challenges move-up buyers face. You’ve found the perfect home, but you haven’t sold your current one yet. In today’s market, sellers are increasingly rejecting offers that are contingent on another home’s sale.
A bridge loan solves that problem. It’s a short-term financing tool that uses the equity in your current home to fund the down payment on your next one — so you can make a strong, non-contingent offer without waiting for your sale to close.
Failure to pay on your Bridge Loan could damage your credit standing and result in the loss of your home through foreclosure.
Bridge loans are a strong fit if you:
- Have significant equity in your current home
- Need to close on a new home quickly without a sale contingency
- Want to move in, stage your old home properly, and sell on your timeline
- Don’t want to move twice or scramble for temporary housing
What to expect:
- Short-term loan — typically repaid when your current home sells
- Requires solid credit and documented equity in your departing home
- May allow you to make a stronger, non-contingent offer
The bottom line: a bridge loan gives you the freedom to move on your terms, not the market’s.
Rate Buydowns: Make Your New Payment More Manageable
If today’s interest rates are making your move-up purchase feel financially tight, a rate buydown might be exactly the breathing room you need.
A buydown is a strategy where someone — a seller, a builder, or you — pays an upfront cost at closing to temporarily or permanently lower your interest rate. The most popular option right now is the 2-1 buydown, where your rate is reduced by 2% in year one and 1% in year two before settling at the full rate from year three onward.
Here’s why this matters for move-up buyers right now: with more sellers than buyers in today’s market, sellers are increasingly willing to offer buydowns as a concession to close the deal. That means you may be able to negotiate a lower rate — without paying for it yourself.
A 2-1 buydown in practice:
- On a $500,000 loan at a 6.5% note rate — Year 1 payment reflects a 4.5% rate, Year 2 reflects a 5.5% rate, and Year 3+ is the full 6.5%
- Builders are also offering buydowns as incentives on new construction — another reason to consider that route
If you plan to refinance when rates drop, a temporary buydown keeps your payments low in the short term while you wait for the right moment.
Rate and APR are fixed for the entire 30-year term, but the initial payments are reduced based on the buydown benefit. The buydown benefit discount for Year 1 is 2%, Year 2 is 1%, and Years 3–30 will no longer be discounted. Example provided for illustrative purposes only. Actual loan terms and payments will vary based on borrower qualifications and loan program.
ITIN Loans: Homeownership Without a Social Security Number
If you live and work in the U.S. but don’t have a Social Security number, you may have assumed homeownership was out of reach. It’s not.
An ITIN loan allows eligible borrowers to qualify for a mortgage using an Individual Taxpayer Identification Number instead of an SSN. These are non-QM loans, which means they use flexible underwriting that looks at bank statements, alternative credit history, and documented income rather than the standard conventional requirements.
ITIN loans are a strong fit if you:
- Hold an ITIN and file U.S. taxes but don’t have an SSN
- Are a visa holder, nonresident alien, or foreign national living in the U.S.
- Have a stable income and documented financial history
- Are ready to move into a larger home and have built some savings for a down payment
What to expect:
- Down payments typically starting around 10–20%
- Alternative credit documentation accepted in many cases
- U.S. law does not restrict property ownership to citizens — you have every right to buy
Foreign National Loans: Invest in U.S. Property From Abroad
If you live outside the United States but want to purchase a home or investment property here — whether as a vacation home, a base for business travel, or a long-term asset — a foreign national loan makes it possible.
These are non-QM loans specifically designed for non-residents who don’t have a U.S. credit history, Social Security number, or domestic tax returns. Lenders underwrite based on international bank statements, global assets, and the property’s value rather than traditional U.S. documentation.
Foreign national loans are a strong fit if you:
- Live abroad and want to purchase U.S. real estate
- Have international income and assets but no U.S. credit file
- Are looking to buy a vacation home, second home, or investment property
- Hold a valid passport from a non-sanctioned country
What to expect:
- Down payments typically starting at 25–30%
- International bank statements and reserve documentation required
- Loan amounts up to $2 million, depending on program guidelines and borrower qualifications
- Rates are slightly higher than conventional loans, reflecting the more flexible underwriting
Which Non-QM Program Is Right for Your Move-Up Journey?
Here’s a quick reference to match your situation to the right loan:
| Your Situation | Best Non-QM Option |
|---|---|
| Need to buy before your home sells | Bridge Loan |
| Rates feel too high for your budget | Rate Buydown |
| You have an ITIN, not an SSN | ITIN Loan |
| You live outside the U.S. | Foreign National Loan |
The right program depends on your specific financial profile, timeline, and goals — and the best way to figure that out is to have a real conversation with a loan officer who specializes in non-QM lending.
Your Next Home Is Closer Than You Think
Move-up buyers have more financing options available to them today than at almost any other point in recent history. The non-QM market has expanded significantly, and whether your challenge is timing, income type, documentation, or citizenship status, there’s likely a program built for your situation.
Don’t let the assumptions of the traditional mortgage system hold you back from the home you’re ready for.
This content is for informational purposes only and does not constitute a commitment to lend. Loan programs, rates, and terms are subject to change. Not all borrowers will qualify. Contact us to discuss your specific situation.
Jay Tolisano is Divisional SVP of Production for CrossCountry Mortgage, NMLS # 109296.
The opinions expressed within this article may not reflect the opinions or views of CrossCountry Mortgage, LLC or its affiliates. Example provided for illustration purposes only and is not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard.