A qualified mortgage is a long-term loan for a home that meets all the consumer protection requirements outlined in the Dodd-Frank Act. For a loan to be qualified, it must not have risky features, high upfront costs, or loan terms exceeding 30 years. Additionally, lenders must adhere to "ability to repay rules" and limit the debt-to-income ratio to 43%. This type of mortgage is the underwriting standard for the mortgage industry.

Home Equity Line of Credit (HELOC) allows you to borrow against the equity of your home, which is the difference between its value and mortgage balance.

Nonqualified mortgages (NonQM loans) are for applicants who don't meet the criteria for a qualified mortgage under the Dodd-Frank Act. This could be due to a high DTI or erratic income. Lenders may offer nonQM loans but may have higher interest rates due to the borrower's higher risk. These loans are beneficial for a wide range of individuals, including the self-employed, business owners, those with high levels of debt or low credit scores, real estate investors, and freelance or gig economy workers with fluctuating income.

A bridge loan is a short-term loan secured by your current home and designed to provide financing during a transitionary period, such as moving from one house to another. Homeowners faced with sudden transitions, such as having to relocate for work, might prefer a bridge loan to help with the cost of buying a new home. However, bridge loans are not a substitute for a mortgage and are designed to be repaid within six months to three years.

A bank statement loan works a bit differently than a traditional mortgage. A bank statement loan requires one to two years of bank statements to show income instead of tax returns or pay stubs. A borrower may need to provide personal and business statements and additional documentation. A larger down payment, up to 20% or more, may be required for those with low credit scores.

A DSCR (debt service coverage) loan, is a type of mortgage that individuals can use to purchase investment properties. While traditional mortgage lenders consider the borrower's income to determine eligibility, DSCR lenders evaluate the investment property's cash flow.

ITIN (individual taxpayer identification number) loans are mortgages for non-US citizens who want to buy a home in the US without a Social Security number. This includes both residents and non-residents, as well as their spouses. These are NonQM loans.