Real income. Different paperwork.
Self-employed, investor, recently credit-challenged or asset-rich? Non-QM loans qualify you on how you actually earn and hold money, not on a W-2.
Qualified mortgages are built for W-2 earners. Non-QM is built for everyone else.
Non-Qualified Mortgages sit outside the standard agency rules, which lets lenders look at bank deposits, rental cash flow, liquid assets or 1099 income instead of tax returns. Rates are somewhat higher than conventional, and the path is real.
Who it fits
- Self-employed borrowers whose tax returns understate income
- Real estate investors growing a portfolio
- 1099 contractors and gig workers
- High-net-worth borrowers with assets but low reported income
- Borrowers with recent credit events (bankruptcy, foreclosure, late payments)
- Foreign nationals and ITIN borrowers
Let’s find the right fit.
Apply now or talk through your options with Erick.
Why borrowers choose Non-QM loans.
Bank statement loans
Qualify with 12 or 24 months of personal or business deposits. No tax returns required.
DSCR investor loans
The rental income covers the payment, so your personal income is not the deciding factor. No limit on financed properties with many investors.
Asset depletion
Liquid assets are converted into qualifying income. Ideal for retirees and investors.
1099 and P&L programs
Qualify with 1099 forms or a CPA-prepared profit and loss statement.
Recent credit events
Programs for borrowers one day out of bankruptcy or foreclosure with strong compensating factors.
Interest-only and jumbo
Non-QM programs often include interest-only options and loan amounts well above conforming limits.
Typical requirements
Credit score typically 620 or higher; some programs go lower
Down payment usually 10% to 25% depending on program and credit
12 or 24 months of bank statements, 1099s, or asset statements
For DSCR: a lease or market rent appraisal showing coverage of the payment
Reserves of 3 to 12 months of payments are common
Guidelines vary by lender, program and property. Erick will confirm exact requirements for your file.
How it works
Quick call.
Ten minutes on the phone. You tell Erick the goal, he tells you the realistic options.
Pre-approval.
Send documents through a secure link. Most pre-approvals are issued the same day.
Lock and process.
Rate locked, file submitted, updates in plain English every step.
Close.
Sign with a remote online notary where available, or in person. Keys in hand.
Non-QM loans FAQ
Are Non-QM rates higher?
Usually somewhat higher than conventional, reflecting the flexible documentation. For many borrowers it is the difference between buying now and not buying.
How is bank statement income calculated?
Deposits over 12 or 24 months are averaged, with an expense factor applied for business accounts. Erick runs the calculation before you apply so there are no surprises.
What is a DSCR?
Debt Service Coverage Ratio: monthly rent divided by the monthly payment (principal, interest, taxes, insurance, HOA). A ratio of 1.0 or above means the property pays for itself; some programs accept lower.
Can I refinance a Non-QM loan later?
Yes. Many borrowers refinance into a conventional loan once their tax returns or credit profile support it.
Do Non-QM loans have prepayment penalties?
Owner-occupied Non-QM loans do not. Investor DSCR loans sometimes carry a prepayment penalty in exchange for a lower rate; it is always disclosed upfront.
Ready to talk numbers?
Call, email or send a quick message. Erick answers questions directly and tells you what fits, and what does not.
