Flexible mortgage solutions when traditional rules don’t fit.
What Is a Non-QM Loan?
A Non-Qualified Mortgage (Non-QM) loan is designed for borrowers who don’t meet the strict documentation requirements of Conventional or FHA Loans.
“Non-qualified” does not mean risky — it simply means the loan uses alternative documentation to verify your ability to repay.
Non-QM loans are ideal for:
- Self-employed borrowers
- Business owners
- 1099/contract workers
- Gig-economy earners
- Real estate investors
- High-asset borrowers with low taxable income
- People with recent credit events (BK, foreclosure, short sale)
If your tax returns don’t reflect your true income, Non-QM gives you access to real mortgage options.
⭐ Key Non-QM Features & Benefits
- Bank Statement Qualification
Qualify using 12–24 months of business or personal bank statements. - Asset-Based Loans
Use verified assets instead of income — ideal for retirees or business owners. - 1099 Income Programs
Qualify using your 1099 forms rather than tax returns. - DSCR Investor Loans
Approval based on property cash flow, not personal income. - Recent Credit Event Flexibility
Bankruptcy or foreclosure in recent years? You may still qualify. - Interest-Only Options
Lower initial monthly payments — excellent for cash-flow management.
🚀 See If You Qualify for a Non-QM Loan
Perfect for self-employed borrowers, business owners, and unique situations.
👉 Get Pre-Qualified for a Non-QM Loan »
(No hard credit pull)
Who Non-QM Loans Are Best For
Non-QM works extremely well if you:
- Are self-employed with strong bank deposits
- Report less taxable income due to business deductions
- Have high net worth but inconsistent income
- Need to close fast with flexible documentation
- Want to qualify using rental income or DSCR
- Have strong cash flow but imperfect credit history
If you’re an investor, compare with our DSCR Loan Programs — they often require even less documentation.
Common Non-QM Loan Types
| Loan Type | Description | Best For |
|---|---|---|
| Bank Statement Loan | Uses 12–24 months of bank deposits | Self-employed borrowers |
| Asset Depletion Loan | Converts assets into qualifying income | High-net-worth borrowers |
| 1099 Income Loan | Uses 1099 forms instead of tax returns | Contractors, freelancers |
| DSCR Loan | Approves based on rental income | Real estate investors |
| Interest-Only Mortgage | Pay interest first, then principal | Cash-flow strategy buyers |
| Recent Credit Event Loan | Flexible after bankruptcy/foreclosure | Borrowers rebuilding credit |
Non-QM Loan Example
| Description | Amount |
|---|---|
| Purchase Price | $600,000 |
| Down Payment (15%) | $90,000 |
| Loan Amount | $510,000 |
| Income Documentation | 12 months bank statements |
| Approx. Payment | ~$3,900/mo |
Use our Payment Calculator to estimate your numbers.
How Non-QM Compares to Other Loan Types
| Feature | Non-QM | Conventional | FHA |
|---|---|---|---|
| Documentation | Flexible | Strict | Moderate |
| Down Payment | 10%–20% | 3%–20% | 3.5% |
| Credit Score | Flexible | 620+ | 580+ |
| Best For | Self-employed, investors, complex income | Strong income/W-2 | Limited savings/lower credit |
If you are self-employed, comparing Non-QM with Conventional Loans can show which offers the better total cost.
Why Work With AskMortgageAuthority.com
We understand complex income. You get:
- Access to flexible Non-QM lenders
- Help analyzing bank statements & deposits
- Fast pre-qualification for self-employed borrowers
- Clear guidance on DSCR, 1099, bank statement, and asset-based loans
- No judgment. No nonsense. Just real mortgage options that reflect your actual financial picture.
Start Exploring Your Options
You built your financial success differently — your mortgage should match.
👉 Get Pre-Qualified for a Non-QM Loan »
Non-QM Loan FAQs
Do I need tax returns for a Non-QM loan?
No. Many Non-QM programs do not require tax returns if you qualify through bank statements, assets, or DSCR.
What credit score is needed?
Many programs accept 580–620+, depending on documentation type.
Are Non-QM loans safe?
Yes — they follow ATR (Ability to Repay) guidelines but allow alternative documentation.
Do Non-QM loans have higher interest rates?
Rates are usually slightly higher than Conventional loans, but often competitive given the flexibility offered.
Can I get a Non-QM loan after bankruptcy or foreclosure?
Yes. Many programs allow qualification 1–2 years after a major credit event.