A NONI loan, short for Non-Owner No-Income, is a business-purpose mortgage for 1–4 unit residential investment properties that requires no income documentation and no owner occupancy. The underwriting skips your tax returns, pay stubs, and debt-to-income ratio entirely. What qualifies you instead is the property’s cash flow, measured through the debt service coverage ratio (DSCR).
These loans are built for a specific borrower profile:
- Real estate investors who own properties through an LLC
- Business borrowers whose reported income doesn’t reflect their actual financial position
- Foreign nationals who lack U.S. income documentation
- Investors scaling a portfolio who can’t or won’t document personal income
NONI loans are business purpose loans for 1–4 unit residential properties, meaning they fall outside the consumer mortgage rules that govern owner-occupied financing. That distinction matters for both underwriting speed and documentation requirements.
What NONI loan options are available in 2026?
Six programs currently serve this market, each targeting a different borrower scenario. The product line from theLender, developed over four years and informed by over $5 billion in non-QM submissions, covers the widest range of DSCR situations.
| Product | Loan Type | Max Loan Amount | Min FICO | Max LTV | DSCR Requirement | Units Allowed | Foreign National | Cash Out |
|---|---|---|---|---|---|---|---|---|
| theNONI | NONI Purchase/Refi | $3.5M | 620 | 85% (purchase) | ≥ 1.0 | 1–4 | Yes | Yes |
| superNONI | NONI Cash Out | $3.5M | 660 | 75% | ≥ 1.0 | 1–4 | Yes | Yes (no seasoning) |
| nearNONI | NONI Sub-1.0 DSCR | $3M | 660 | 75% | 0.75–0.99 | 1–4 | Yes | Yes |
| theBLANKET | Portfolio/Multi-property | Varies | 620 | Varies | ≥ 1.0 | Multiple | Yes | Yes |
| HomeFi | Digital NONI | Not publicly listed | Not publicly listed | Not publicly listed | Not publicly listed | 1–4 | — | — |
| 1st Nationwide Mortgage Corporation | Direct Lender NONI | $3.5M | 620 | 85% | ≥ 1.0 | 1–4 | Yes | Yes |
theNONI is the standard entry point. It requires a DSCR at or above 1.0, accepts FICO scores as low as 620, and goes up to $3.5M. Purchase transactions can reach 85% LTV with a 700+ FICO, and rate/term refinances go to 80% LTV at the same credit threshold.
superNONI targets investors who want cash out without ownership seasoning requirements. It’s the right tier when you’ve recently acquired a property and want to pull equity before a standard seasoning clock expires.
nearNONI is the most flexible tier for properties with cash flow challenges. It accepts DSCRs between 0.75 and 0.99, provided the borrower offsets the lower coverage with compensating factors like reduced LTV or higher reserves. Loans go up to $3M with a 660 minimum FICO.
theBLANKET bundles multiple properties under a single loan structure. For investors managing several rentals, consolidating into one loan simplifies servicing and can free up individual property equity.
HomeFi offers a digital-first application process focused on investment property niches. Specific program terms are not publicly listed on its site, so direct inquiry is required before comparing it against the other tiers.
1st Nationwide Mortgage operates as a direct lender, not a broker, which means your file doesn’t pass through an intermediary. Licensed in 18 states, BBB A+ rated, and founded by Christopher Arco (NMLS #1281), it offers NONI loans up to $3.5M with the same core parameters as theNONI program. For investors who want a single point of contact with direct underwriting authority, this is the strongest fit.
How do you qualify for a NONI loan?
Qualifying centers on the property, not your personal income. Here’s the process in order:
- Confirm business purpose. The property must be a non-owner-occupied 1–4 unit residential investment. Owner occupancy disqualifies the loan.
- Calculate your DSCR. Divide the property’s gross monthly rent by the total monthly debt service (principal, interest, taxes, insurance, and HOA if applicable). A result at or above 1.0 qualifies for theNONI. A result between 0.75 and 0.99 may qualify under nearNONI with compensating factors. Use a DSCR calculator to run this before applying.
- Check your credit score. Minimum 620 FICO for theNONI and theBLANKET; minimum 660 for nearNONI and cash-out transactions.
- Verify LLC eligibility. NONI loans accommodate LLC ownership, which is standard for investors who hold properties in a business entity.
- Confirm foreign national status if applicable. Foreign nationals qualify under the same program terms, making NONI one of the few residential investment loan structures accessible without U.S. citizenship or permanent residency.
- Gather property documentation. You’ll need a lease agreement or market rent appraisal, property insurance, and a title commitment. No tax returns, W-2s, or pay stubs are required.
- Submit and underwrite. Because no income verification is required, underwriting focuses on DSCR, credit, and property value. This typically shortens the approval timeline compared to conventional investment loans.
How does DSCR work in NONI loan underwriting?
DSCR measures whether a property generates enough rent to cover its own debt payments. A DSCR of 1.0 means rent exactly equals the monthly payment. A DSCR of 1.25 means the property earns 25% more than the payment requires.
For NONI loans, the standard threshold is 1.0. That’s a meaningful difference from conventional investment loans, which layer in personal income, DTI ratios, and reserve requirements on top of property cash flow. NONI underwriting strips that out entirely.
When a property falls below 1.0 DSCR, nearNONI provides a path forward. The program accepts DSCRs as low as 0.75, provided the borrower applies compensating factors. The two most common are a lower LTV (more equity in the deal) and higher cash reserves held after closing. Experienced investors use this tier strategically for high-appreciation properties with temporarily low cash flow, accepting tighter LTV terms to get the deal funded.
- A property with a 0.85 DSCR and 35% equity may qualify under nearNONI where theNONI would decline it.
- Cash-out proceeds can count as reserves under nearNONI, which creates flexibility when structuring the deal.
Pro Tip: If your target property has a DSCR just below 1.0, run the numbers on a larger down payment before assuming the deal won’t work. Dropping from 75% to 65% LTV often satisfies the compensating factor requirement for nearNONI approval.
What are the specific loan limits, FICO floors, and LTV caps?
The credit and LTV structure varies by transaction type. For purchase transactions, theNONI goes to 85% LTV with a 700+ FICO and to 75% LTV with a 660+ FICO. Rate/term refinances follow a similar pattern: 80% LTV at 700+ and 75% LTV at 660+. Cash-out refinances are capped at 75% LTV with a 700 minimum and 70% LTV with a 660+ FICO.
Loan amounts reach $3.5M for theNONI and 1st Nationwide Mortgage’s program, and $3M for nearNONI. There are no LTV restrictions on 2–4 unit properties under theNONI, and recently listed properties are allowed with a minimum one-year prepayment requirement.
What program features set NONI loans apart?
Several features distinguish NONI from both conventional and standard non-QM investment loans:
- No reserves required on standard theNONI transactions (nearNONI may require reserves as a compensating factor)
- Gift funds allowed for down payment and closing costs
- TRID exempt status: Business purpose loans like NONI are generally exempt from TRID disclosure requirements, which simplifies the closing process
- No ownership seasoning on cash-out transactions under theNONI and superNONI
- LLC ownership accepted without requiring personal guarantee structures that conventional lenders impose
- Unlimited cash out available under theNONI program
These features collectively reduce friction at every stage, from application through closing, making whole life insurance a strategic complement in your investment portfolio as explained in Whole Life Insurance in Your Real Estate Portfolio.
What do interest rates and fees typically look like?
NONI loans carry higher rates than conventional investment loans because they are non-QM products with no income documentation. Specific rate quotes depend on FICO score, LTV, DSCR, loan amount, and current market conditions. No publicly listed rate sheet applies universally across programs.
Origination fees typically range from low single-digit points, consistent with non-QM lending generally. Prepayment penalties are common and often structured on a step-down schedule over several years. Recently listed properties under theNONI require a minimum one-year prepayment period.
What payment terms and amortization options apply?
Most NONI loans are structured as 30-year amortizing loans, though interest-only periods are available on select programs. A 30-year fixed rate structure provides the lowest monthly payment, which directly improves DSCR calculations and can make the difference between qualifying and not qualifying at a given loan amount.
Adjustable-rate options exist but are less common in the NONI space, where investors generally prefer payment predictability for cash flow modeling.
What does a NONI loan cost to close?
Closing costs on NONI loans typically include lender origination fees (1–2 points), title insurance, appraisal, and standard third-party fees. Because NONI loans are business purpose and generally TRID exempt, some standard consumer disclosure fees don’t apply, which can modestly reduce the cost stack.
Prepayment penalties are a real cost to model. If you plan to sell or refinance within three years, factor the step-down penalty into your exit analysis. On a high-value loan with a first-year penalty, the payoff cost can be significant.
What should you ask a NONI lender before committing?
- Are you a direct lender or a broker? A direct lender controls underwriting decisions; a broker adds a layer between you and the decision-maker.
- Which states are you licensed in? NONI programs are not available in every state.
- What is your minimum DSCR, and do you offer a sub-1.0 tier?
- What are your prepayment penalty terms?
- Do you allow LLC vesting and foreign national borrowers?
- What is your typical time from application to clear-to-close?
1st Nationwide Mortgage offers direct NONI lending with no intermediary
For investors who want direct underwriting access on NONI investment loans up to $3.5M, 1st Nationwide Mortgage operates as a mortgage banker, not a broker. Christopher Arco (NMLS #1281) founded and runs the company, which holds a BBB A+ rating and is licensed in 18 states. The loan programs cover NONI, DSCR, and bank statement loans for self-employed borrowers, all under one roof.
You can use the mortgage calculators on the 1st Nationwide Mortgage site to model DSCR and payment scenarios before you apply. State-specific programs are available for markets including New York and Hawaii. If your scenario involves a foreign national, the foreign national NONI guide walks through the underwriting specifics in detail.
Key Takeaways
NONI loans qualify investors on property cash flow, not personal income, making them one of the most accessible non-traditional loan structures for residential investment properties in the U.S.
| Point | Details |
|---|---|
| No income docs required | NONI loans use DSCR, not tax returns or pay stubs, to qualify borrowers. |
| DSCR thresholds vary by tier | Standard theNONI requires DSCR ≥ 1.0; nearNONI accepts 0.75–0.99 with compensating factors. |
| Loan amounts reach $3.5M | theNONI and 1st Nationwide Mortgage both lend up to $3.5M with FICO as low as 620. |
| LLCs and foreign nationals qualify | NONI loans accept LLC ownership and foreign national borrowers under standard program terms. |
| 1st Nationwide Mortgage is a direct lender | Licensed in 18 states, BBB A+ rated, with NONI loans up to $3.5M and no broker intermediary. |