Non-QM Loans — Alternative Mortgage Programs
Not every borrower fits the Fannie Mae / Freddie Mac conventional mortgage box. Self-employed business owners, real estate investors, 1099 contractors, high-net-worth borrowers with complex income structures, foreign nationals, and retirees with strong assets but low taxable income all run into the same wall: conventional underwriting is built for W-2 employees with simple tax returns, and that’s not most of our borrowers.
Non-QM loans are the answer. Non-Qualified Mortgage programs use alternative documentation — bank statements, rental income, 1099s, assets, or P&L statements — instead of tax returns to qualify borrowers.
Check Non-QM Loan Options Talk to a Non-QM Specialist — (833) 350-9185What Is a Non-QM Loan?
A Non-QM (Non-Qualified Mortgage) is any mortgage that doesn’t meet the Consumer Financial Protection Bureau’s “Qualified Mortgage” safe-harbor guidelines. QM loans follow strict rules set by Fannie Mae, Freddie Mac, and Ginnie Mae — primarily around debt-to-income (DTI) ratios, points/fees caps, and income documentation methods.
Non-QM loans sit outside those rules and use alternative documentation to qualify borrowers who are clearly capable of repaying but don’t fit the conventional mold. All Non-QM loans are still fully documented — post-Dodd-Frank regulations require every mortgage to include an “ability-to-repay” determination. They’re not “no-doc” loans in the pre-2008 sense.
What Non-QM loans have in common:
- Alternative income documentation (bank statements, rental income, 1099s, assets)
- Flexibility on DTI, self-employment history, and complex income
- Usually higher rates than conforming (0.75-1.50 percentage points above)
- Available for purchase, rate-and-term refinance, and cash-out refinance
- Often allow LLC vesting for investment properties
- No limit on number of financed properties (conventional caps at 10)
Our Non-QM Program Lineup
We offer the full suite of Non-QM products. Pick the one that fits your documentation profile:
Bank Statement Loans
Qualify using 12 or 24 months of bank statements (personal or business). Best for self-employed borrowers whose deposits tell a better story than their tax returns. Used by business owners, 1099 contractors, and anyone whose 1040 understates actual income.
DSCR Loans (Investor)
Qualify on the property’s rental income — no personal income docs at all. Best for real estate investors building portfolios. Works for long-term rentals, short-term rentals (Airbnb), and 1-4 unit multifamily. LLC vesting standard.
→ Full program details · Airbnb / Short-Term Rental DSCR
1099 Mortgages
Qualify using 1099 forms directly. Best for real estate agents, independent consultants, travel healthcare professionals, gig platform workers, and any clean 1099 earner. No bank statements, no tax returns.
NONI Investment Loans
No Income, No Asset verification. Premium tier of DSCR for experienced investors and high-balance properties. Foreign nationals welcome. Up to $3.5M, 85% LTV purchase.
12-Month Bank Statement
Faster-track version of bank statement loans — qualify with just 12 months of deposits instead of 24. Good for borrowers whose older history isn’t relevant (new business, recent pivot, post-life-event).
Mortgage Without Tax Returns Guide
Comprehensive comparison of all five non-tax-return paths (bank statement, DSCR, asset depletion, 1099-only, P&L-only) with a decision matrix showing which fits which borrower profile.
Who Uses Non-QM Loans?
| Borrower Profile | Best-Fit Non-QM Product |
|---|---|
| Self-employed, consistent deposits | Bank Statement |
| Self-employed, lumpy deposits but clean 1099s | 1099 Mortgage |
| Self-employed, multiple entities / complex | Bank Statement (personal) |
| Real estate investor building portfolio | DSCR |
| Investor with 10+ properties (hit conventional cap) | DSCR or NONI |
| Airbnb / STR operator | DSCR (STR-income accepted) |
| High-net-worth with low taxable income | Asset Depletion or NONI |
| Foreign national | NONI (foreign national program) |
| Retiree with large investment accounts | Asset Depletion |
| 1099 contractor / real estate agent | 1099 Mortgage |
Non-QM vs. Conventional — The Key Differences
| Feature | Conventional (QM) | Non-QM |
|---|---|---|
| Income documentation | Tax returns, W-2s, pay stubs | Bank statements, 1099s, rental income, assets |
| DTI limits | Strict (~43% typical) | Flexible, often up to 50%+ |
| Self-employment history | 2 years required, consistent | More flexible |
| LLC vesting (investment) | Not allowed | Allowed |
| Financed property cap | 10 properties | Unlimited |
| Interest rate | Lower baseline | Typically 0.75-1.50 points higher |
| Closing timeline | 30-45 days typical | 21-30 days typical |
| Points/fees caps | Strict QM safe harbor | Flexible |
| Best for | W-2 borrowers, primary home, simple income | Self-employed, investors, complex income |
Why Non-QM Rates Have Come Down
Non-QM lending was rebuilt after 2008 with entirely different underwriting standards than the pre-crisis “stated income” era. Today’s Non-QM loans are:
- Fully documented (just with alternative documentation)
- Ability-to-repay verified (required by Dodd-Frank)
- Originated by licensed lenders (not the pre-crisis broker chaos)
- Backed by established securitization markets with institutional investor capital
That maturity has driven rate spreads down meaningfully. What once cost 2-3 percentage points over conforming now runs 0.75-1.50 — often worth every basis point when the alternative is not qualifying at all.
Non-QM States We Serve
Program availability varies by state:
- Bank Statement loans: Available in 18 states where we hold full-service NMLS broker licensing (AL, AK, AZ, CA, CO, FL, GA, ID, IA, MT, NC, OH, OR, SC, TN, TX, VA, WA)
- DSCR loans: Available in 36 states + D.C. — see full DSCR coverage
- NONI Investment loans: Available in 38+ states including HI and NY (where DSCR isn’t offered)
- 1099 mortgages: Same coverage as bank statement loans
For state-specific information:
- California Non-QM — LA, SF Bay, OC, SD self-employed lending
- Texas Non-QM — DFW, Houston, Austin, SA self-employed lending
- California DSCR — investor financing statewide
- Texas DSCR — investor financing statewide
- Hawaii NONI — investor financing for HI
- New York NONI — investor financing for NY
Frequently Asked Questions
Get Started
Unsure which Non-QM program fits you? Use the Loan Finder for a 30-second guided recommendation, call (833) 350-9185, or check eligibility directly .
See also: Loan Programs Hub · Bank Statement Loans · DSCR Loans · 1099 Mortgages · NONI Investment Loans · Mortgage Without Tax Returns
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