Non-QM loans for borrowers who don't fit the box

Why non-QM exists

Most mortgages follow strict documentation rules built around W-2 income and tax returns. That works for many people, but not for business owners with write-offs, investors with several properties or borrowers with significant assets and little monthly income. Non-QM lenders still review your finances, just with different tools.

Common non-QM loan types

The programs below may be available through some wholesale lenders, subject to guidelines.

• Bank statement loans: Use personal or business deposits instead of tax returns.
• DSCR loans: Qualify investment property on its rental income.
• P&L loans: Use a profit and loss statement from a tax professional.
• 1099 loans: For independent contractors.
• Asset-based loans: Qualify using liquid assets.
• Foreign national programs: Foreign national financing may be available through some wholesale lenders, subject to guidelines, typically for second homes or investment properties with a larger down payment.
• ITIN programs: ITIN loans may be available through some wholesale lenders, subject to guidelines.
• Non-QM home equity: HELOCs and cash-out using alternative documentation.

Who non-QM fits

• Self-employed borrowers and gig workers
• Real estate investors
• Borrowers with significant assets
• People with a recent credit event who are rebuilding
• Buyers of property types that standard loans don't cover well, such as non-warrantable condos

Programs for recent credit events and non-standard property types may be available through some wholesale lenders, subject to guidelines.

Pros and cons

Pros: Flexible documentation; can work when traditional loans can't; may be available for purchase, refinance and cash-out.

Cons: Pricing and terms can differ from standard loans; may require more down payment or reserves; some carry prepayment terms; guidelines vary widely.

Is non-QM risky?

Non-QM loans are underwritten. Lenders review credit and assets, and for a home you'll live in, they must make a good-faith determination of your ability to repay. Read every term carefully, especially prepayment terms and any adjustable features, and ask questions.

Our guides

Read our full guides to DSCR loans and self-employed bank statement loans for more detail.

How Turn Times helps

Turn Times is a licensed mortgage broker, not a lender. Instead of offering one company's products, we compare non-QM options from wholesale lenders and walk you through the differences in plain language. Here's how it usually goes:

1. Tell us your goal. A short conversation about the property, your timeline and what matters most to you.
2. We search pricing across wholesale lenders. We look at which wholesale lenders' guidelines may fit your situation, and a licensed loan officer compares their pricing and terms.
3. You choose. We lay out the trade-offs so you can pick the option that works for you.
4. We manage the loan to closing. Appraisal, title, conditions and updates along the way.

Every loan is subject to the lender's underwriting, and approval isn't guaranteed. We arrange loans for properties in California and Colorado.

Frequently asked questions