Call for a FREE Consultation and Report


businesswoman thinking about concept of real estate sales


A non-QM loan, or a non-qualified mortgage, is a type of mortgage that allows a borrower to qualify for a mortgage based on alternative methods, instead of traditional income verification required for Conventional Mortgages or other types of government guaranteed mortgages such as FHA and VA. These mortgages offer more flexible qualification requirements and open up real estate opportunities to a broader group of individuals.

One of the most popular newer programs is geared toward investors. Qualification is based on the rental income that a property will generate and is not based on the employment of the borrowers. This program offers the following:

·         Up to $3 million loan amounts
·         First time investors allowed
·         For borrowers who are experienced real estate investors looking to purchase investments properties or Airbnb/VRBO rentals
·         Income used to qualify based on cash-flows from property owned
·         Unlimited financed properties allowed
·         No tax returns or tax transcripts required
·         No debt ratio calculation required
·         30-year fixed rate and 30-year interest only fixed rate terms available
·         5/6, 7/6, 10/6 ARMS with interest only options

Another popular program is geared to self-employed borrowers who may not have been in business for the required two years or those where the tax returns do not accurately reflect the business income of the borrower. This program allows self-employed individuals to use 12 or 24 months’ personal or business bank statements to support their income in qualifying for a mortgage. Key Features and Benefits:

  • For borrowers who can support their self-employed income with bank statements
  • Income is calculated by averaging deposits shown on bank statements
  • Up to $3 million loan amounts
  • Can have one late mortgage payment over the last 12 months
  • 30-year fixed-rate and 30-year interest-only fixed rate terms available
  • 5/6, 7/6, 10/6 ARMs with interest-only options

In the general the programs are geared toward borrowers who would prefer not to do a conventional mortgage or those who cannot meet the traditional qualification or documentation requirements. The type of borrower who might benefit from a non-QM loan include the following:

  • Retirees
  • Self-employed and Business Owners
  • Real estate investor
  • Foreign national
  • Buyer who lives off investment income, or have high assets and low income
  • Buyer with a high debt-to-income ratio
  • Buyer with less-than-perfect credit


For more information on these programs or other mortgage programs we may be able to offer call Wayne, Kim, or Elizabeth at 303-468-1985.