Flexible programs for complex scenarios
Bank statement loans, DSCR loans, P&L loans, and asset-based lending — for self-employed borrowers and real estate investors who don't fit the standard mold.
What Is a Non-QM Loan?
A Non-QM (non-qualified mortgage) loan is any loan that does not meet the Consumer Financial Protection Bureau's (CFPB) definition of a "qualified mortgage." QM loans require standard income documentation (W-2s, tax returns), strict DTI limits, and other guidelines designed for traditional W-2 employees.
Non-QM loans use alternative documentation methods to verify a borrower's ability to repay. They are not subprime loans — they are designed for creditworthy borrowers whose income structure doesn't fit the standard W-2 mold.
Who Non-QM is designed for
- Self-employed borrowers with significant write-offs on tax returns
- Real estate investors using rental income to qualify
- Business owners who pay themselves via distributions
- High-net-worth borrowers with large assets but irregular income
- Foreign nationals purchasing U.S. property
- Borrowers with recent credit events (bankruptcy, foreclosure) past standard waiting periods
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See if a Non-QM loan fits your scenario.
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Start my mortgage inquiryBank Statement Loans
Bank statement loans may allow self-employed borrowers to document income with personal or business bank statements instead of tax returns, subject to lender requirements. Because many self-employed borrowers show lower taxable income due to legitimate business deductions, their tax returns don't accurately reflect their actual cash flow.
How income is calculated
Personal bank statements
Deposit treatment and documentation periods vary by lender and program.
Business bank statements
Expense treatment, deposit treatment, and documentation periods vary by lender and program.
Program requirements
Self-employment history, credit, reserves, down payment, and documentation requirements vary by lender and program.
DSCR Loans (Debt Service Coverage Ratio)
DSCR loans are qualified mainly on the property's rental income. Lenders compare the rent with the property's monthly payment (principal, interest, taxes, insurance and any HOA dues), and each lender sets its own requirements.
DSCR formula
DSCR = Monthly Rent ÷ Monthly PITIA
PITIA = Principal + Interest + Taxes + Insurance + HOA
DSCR loan requirements depend on property income, the borrower, the property, lender guidelines, and the complete application. Documentation requirements vary by program and lender.
Tony AI
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Tony will walk you through your Non-QM scenario and show estimated options — no commitment, no credit pull.
Start my mortgage inquiryP&L Loans (Profit & Loss)
P&L loans use a CPA-prepared or accountant-prepared profit and loss statement to document income — without requiring full tax returns. This is useful for business owners whose tax returns show significant deductions but whose actual business profitability is strong.
CPA preparation required
Most lenders require the P&L to be prepared and signed by a licensed CPA or tax professional. Self-prepared P&L statements are generally not accepted.
Asset-Based Loans
Asset-based loans (also called asset depletion or asset dissipation loans) allow high-net-worth borrowers to qualify using their liquid assets instead of income. The lender divides the total eligible assets by the loan term to calculate a monthly income equivalent.
Example calculation
Who Qualifies for Non-QM?
Non-QM loans are available to a wide range of borrowers. General requirements vary by program, but common guidelines include:
| Program | Min. Credit | Min. Down | Key Requirement |
|---|---|---|---|
| Bank Statement | Varies by lender | Varies by lender and program | Self-employment documentation |
| Business Bank Statement | Varies by lender | Varies by lender and program | Self-employment documentation |
| DSCR | Varies by lender | Varies by lender and program | Property-income review |
| P&L | Varies by lender | Varies by lender and program | P&L documentation |
| Asset-Based | Varies by lender | Varies by lender and program | Asset documentation |
| Foreign National | Varies by lender | Varies by lender and program | Identity and immigration documentation |
Tony AI
Find out which Non-QM program fits your scenario.
Tony will walk you through your Non-QM scenario and show estimated options — no commitment, no credit pull.
Start my mortgage inquiry