Loan Programs
Non-QM Loans
When your income doesn't fit the traditional box, Non-QM loans open doors. Bank statements, DSCR, asset-based, ITIN programs, real solutions for real situations.
What Is a Non-QM Loan?
Non-QM stands for Non-Qualified Mortgage. These are loans that don't meet the Consumer Financial Protection Bureau's definition of a "qualified mortgage", not because they're risky or predatory, but because they use alternative methods to verify a borrower's ability to repay. They exist for the millions of creditworthy people whose income documentation doesn't fit neatly into traditional guidelines.
Think about it: if you're self-employed, your tax returns probably understate your actual income due to write-offs. If you're a real estate investor, your cash flow from rentals doesn't show up on a W-2. If you're a 1099 contractor, your income looks different from a salaried employee. Non-QM programs solve this by looking at bank statement deposits, rental income (DSCR), liquid assets, or other alternative documentation.
Common Non-QM programs include bank statement loans (12-24 months of personal or business bank statements), DSCR loans for investors (qualification based on property rental income vs. expenses), asset-based loans (using liquid assets to calculate income), 1099-only loans, and ITIN loans for borrowers who qualify with an Individual Taxpayer Identification Number. Each has its own requirements, and as a broker, I have access to multiple Non-QM lenders with different overlays, so I can find the best fit for your situation.
Program Types
Bank Statement Loans
Use 12-24 months of personal or business bank statements to prove income instead of tax returns. Perfect for self-employed borrowers whose write-offs reduce their taxable income on paper.
DSCR Loans
Debt Service Coverage Ratio loans qualify based on the rental property's income vs. its expenses, not your personal income. Buy investment properties without providing tax returns, pay stubs, or employment verification.
Asset-Based Loans
If you have significant liquid assets (retirement accounts, investment portfolios, savings), these programs calculate qualifying income based on your total asset base, no employment or traditional income required.
1099 Income Loans
For independent contractors and gig workers who receive 1099s instead of W-2s. Qualify using your 1099 forms directly, no tax returns needed, and your gross 1099 income is used for qualification.
ITIN Loans
For borrowers who qualify with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Documentation and eligibility rules vary by lender; I shop Non-QM investors who work with ITIN borrowers for primary homes and other allowed scenarios.
Other
Do you need to mix and match amongst multiple non-QM products in order to create a loan that's right for you? We can do this.
General Requirements
- ✓ Credit Score: Typically 660-700+ depending on the program. DSCR loans may go lower with larger down payments.
- ✓ Down Payment: 10-25% depending on program, credit score, and loan amount. Lower for primary residences, higher for investment properties.
- ✓ Documentation: Varies by program: bank statements, 1099s, asset statements, property rental analysis (DSCR), or ITIN-based file packages when applicable.
- ✓ Reserves: 6-12 months typically required. Varies by lender and loan amount.
- ✓ Rates: Generally 1-3% higher than conventional. The tradeoff for flexible documentation.
Who Is This For?
Non-QM loans fill the gap for borrowers whose real financial strength doesn't show up on traditional documentation:
- → Self-employed business owners with significant tax write-offs
- → Real estate investors building or expanding a rental portfolio
- → 1099 contractors and gig economy workers
- → High-net-worth individuals with significant assets but non-traditional income
- → Foreign nationals or borrowers with ITIN numbers
Frequently Asked Questions
Income doesn't fit the box?
Let's figure out which Non-QM program makes the most sense for your situation.