non-qm
Non-QM Loans
Flexible-documentation financing for self-employed borrowers, investors, and others whose income doesn't fit standard guidelines.
Eligibility
- Qualify with bank statements, 1099s, assets, or rental cash flow instead of tax returns
- Programs for self-employed borrowers, investors, retirees, foreign nationals, and ITIN holders
- Requirements vary by program; ability to repay is always verified
Key benefits
- Income flexibility: bank statement, P&L, 1099, and asset-based qualification
- DSCR loans qualify investment properties on the property's own cash flow
- Interest-only payment options on select programs
- Loan amounts from conforming through jumbo
What are Non-QM loans?
Non-QM stands for non-qualified mortgage. These are programs built for creditworthy borrowers whose finances don't fit the documentation mold that standard agency loans require. The most common reason is income that tax returns don't fully capture: business owners with heavy write-offs, investors whose wealth is in property, retirees living on assets rather than paychecks. Non-QM lending evaluates your ability to repay using documentation that matches how you actually earn.
Who it's for
Self-employed borrowers and business owners, real estate investors, 1099 contractors and commission earners, retirees and other asset-rich borrowers, and foreign nationals or ITIN holders purchasing U.S. property. If a lender has told you "your tax returns don't show enough income" while your bank account says otherwise, this page is for you.
The programs
Bank statement loans. Qualify on 12 or 24 months of personal or business bank statements. Income is calculated from deposits, not tax returns, which suits business owners with significant write-offs.
DSCR loans. For investment properties. The property's rental cash flow qualifies the loan; personal income verification is often not required. A property that covers its own payment is the core test.
Asset utilization. Liquid assets (checking, savings, investment, and retirement accounts) are converted into qualifying income using a lender-approved calculation. Built for retirees and high-net-worth borrowers who live from investments.
P&L and 1099 programs. Qualify with a CPA-prepared profit-and-loss statement, or with one to two years of 1099s. Simplified documentation for contractors, consultants, and commission-based professionals.
Foreign national and ITIN loans. Financing for non-U.S. citizens and borrowers without a Social Security number, using foreign income documentation or an Individual Taxpayer Identification Number with alternative credit references.
Interest-only and jumbo options. Select programs offer an initial interest-only payment period for cash-flow flexibility, and Non-QM underwriting extends above conforming limits for higher-priced properties.
Short-term bridge financing for buying before you sell is also available; see our commercial lending page for bridge and construction programs.
What to consider
Non-QM flexibility comes with tradeoffs, and we'd rather you hear them from us up front. Rates generally run higher than agency-conforming loans. Down payment and reserve requirements are often larger. Credit requirements vary by program. And every program still verifies your ability to repay; flexible documentation is not no documentation. When an agency loan fits your file, it's usually the better deal, and we'll tell you so.
Which program fits?
That depends on how you earn and what you're financing, and it's usually obvious within one conversation. Tell us your situation and we'll map it to the right program with real numbers.
Frequently asked
- What is a Non-QM loan?
- A Non-QM (non-qualified mortgage) loan is a program for creditworthy borrowers who don't fit standard agency guidelines, often because of how their income is documented rather than how much they earn. Lenders verify the ability to repay using alternatives like bank statements, 1099s, assets, or rental cash flow instead of tax returns.
- Who are Non-QM loans for?
- Common fits include self-employed business owners with significant write-offs, real estate investors, commission-based and gig workers, retirees living on assets, and foreign nationals or ITIN holders buying U.S. property. If tax returns understate what you can actually afford, a Non-QM program may fit.
- What is a DSCR loan?
- A DSCR (debt service coverage ratio) loan qualifies an investment property on its own rental cash flow rather than your personal income. If the property's income covers its payment, personal tax returns and employment verification are often not required.
- Are Non-QM rates higher?
- Generally, yes. Rates run somewhat higher than agency-conforming loans, and down payment and reserve requirements may be larger. In exchange you get qualification paths that agency loans simply don't offer. We'll show you the tradeoffs side by side for your situation.