Non-QM Loans
A mortgage that fits your real financial picture
Non-QM (Non-Qualified Mortgage) loans are mortgage products that fall outside the Consumer Financial Protection Bureau's Qualified Mortgage rule — meaning they use alternative income documentation, accommodate recent credit events, or serve borrowers whose financial profiles don't fit conventional templates. For the right borrower, a non-QM loan is not a last resort — it's the right tool for a legitimate but complex financial situation.
Why choose this loan
Benefits of a Non-QM Loans
Serves real financial complexity
Many high-net-worth individuals, retirees with significant assets but low taxable income, foreign nationals, and recent bankruptcy/foreclosure borrowers are credit-worthy but fall outside conventional guidelines. Non-QM fills that gap.
Asset-depletion income option
Retirees and high-asset borrowers can qualify using asset depletion — dividing liquid assets by a defined term (e.g., 360 months) to create an imputed monthly income figure, without requiring employment or traditional income.
Recent credit event flexibility
Waiting periods after bankruptcy, foreclosure, or short sale are much shorter for non-QM products than conventional — often just 12–24 months instead of 4–7 years, allowing faster return to homeownership.
1099-only and P&L income programs
Independent contractors and freelancers who receive 1099s can qualify using just those documents plus a CPA-prepared profit-and-loss statement — no full tax return analysis required.
Eligibility
Do you qualify?
Typical guidelines for a Non-QM Loans. Final eligibility is determined during underwriting.
- Documentation type varies by program: bank statements, 1099s, asset depletion, P&L, or DSCR
- Minimum credit score of 580–640 depending on program and LTV
- Down payment of 10–30% depending on documentation type and credit profile
- Recent credit events (bankruptcy, foreclosure, short sale) may require 12–24 month seasoning
- Foreign national programs available with ITIN or foreign passport; reserve requirements apply
- Loan amounts from $150,000 to $3 million+ depending on lender guidelines
Sample scenarios
Illustrative Non-QM Loans rates
Asset depletion 30-Year Fixed
7.375%
Illustrative; strong asset tier
1099-only 30-Year Fixed
7.625%
Illustrative; 1099 income docs
Recent credit event (12-mo seasoning)
8.25%
Illustrative; higher LTV risk premium
Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.
How it works
Your path to approval
- 1
Identify the right non-QM program
We review your unique income situation, credit history, and assets to match you with the most appropriate non-QM product — bank statement, asset depletion, 1099, P&L, or credit event recovery.
- 2
Documentation preparation
We'll give you a precise checklist tailored to your program. Our team reviews everything upfront to confirm qualification before moving to full application.
- 3
Appraisal and non-QM underwriting
Non-QM underwriting is more manual and judgment-based than automated conventional underwriting. Having an experienced loan officer in your corner is critical — we present your file compellingly.
- 4
Close and rebuild
Many non-QM borrowers use this product as a bridge — buying or refinancing now, then refinancing into a conventional loan once income documents, credit, or equity improve.
Non-QM vs. Conventional vs. FHA
| Non-QM | Conventional | FHA | |
|---|---|---|---|
| Income documentation | Flexible / alternative | Full (W-2, tax returns) | Full (W-2, tax returns) |
| Credit event waiting period | 12–24 months | 4–7 years | 2–3 years |
| Min. credit score | 580+ (program dependent) | 620 | 580 |
| Rate vs. QM | Typically 1–2% higher | Baseline | Similar to conventional |
| Loan limit | No conforming cap | $832,750 baseline | $541,287–$1,249,125 |
Frequently asked questions
What makes a loan 'non-QM'?
A Qualified Mortgage (QM) under CFPB rules must meet specific requirements including income verification standards, a maximum 3% points-and-fees threshold, and generally a 43% DTI cap. Non-QM loans don't meet one or more of these criteria — typically because they use alternative income documentation or serve borrowers outside the standard QM profile.
Are non-QM loans predatory or risky?
Not when properly structured. Non-QM loans got a bad reputation from the pre-2008 subprime market, but today's non-QM products require higher down payments, meaningful credit standards, and responsible underwriting. They're a legitimate solution for borrowers with complex but genuine income and credit situations.
How soon after bankruptcy can I get a non-QM loan?
Many non-QM programs allow applications just 12–24 months after a bankruptcy discharge or foreclosure, compared to four to seven years for conventional loans. Requirements vary by program — a Chapter 7 bankruptcy typically requires a longer seasoning period than a Chapter 13.
What is asset-depletion income and who qualifies?
Asset depletion converts liquid assets (savings, investment accounts, retirement accounts) into a monthly income figure by dividing the total by a set number of months (typically 360). A borrower with $1.8 million in assets would have an imputed monthly income of $5,000. This works well for retirees and high-net-worth individuals with low W-2 income.
Non-QM Loans
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