What it is: Loans that fall outside standard agency rules but still follow Ability-to-Repay — designed for real-world income profiles and investors.
Popular Non-QM programs:
- Bank-Statement Loans: Qualify using 12–24 months of business or personal deposits instead of tax returns.
- DSCR (Debt Service Coverage Ratio): Investors qualify based on rent covering payment (e.g., DSCR ≥ 1.0×).
- Asset-Depletion / Asset-Qualifier: Use liquid assets as the income source.
- Interest-Only: Lower payment option for a period (ideal for investors or high-income profiles).
- Foreign National / ITIN: Options available for non-U.S. borrowers (program-specific).
Who it’s for
Self-employed with write-offs, gig-economy earners, real-estate investors, borrowers with complex income or recent credit events.
Typical terms/features
Fixed or ARM. This may allow higher LTVs than banks on unique profiles; prepayment penalties common on investor/DSCR; larger reserve requirements.
Docs you’ll need
ID/SSN/ITIN, bank statements and/or asset statements, lease/rent schedule for DSCR, business docs where applicable, appraisal.
Do we process this loan type ?
Pros
- Flexible income documentation
- Investor-friendly (DSCR)
- Options when agency or bank says “no”
Get in Touch with Mortzee
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