Non-QM loan

Who Is a Good Fit for a Non-QM Mortgage?

Non-QM loans are especially helpful for:

• Self-employed borrowers with fluctuating income
• Individuals with credit challenges or recent financial setbacks
• Homebuyers with high DTI ratios who can still demonstrate ability to repay
• Investors or foreign nationals
• Borrowers using non-traditional income documentation (e.g., bank statements)

Every lender’s criteria may vary, but these loans are designed to help people outside the traditional lending box.

Key Benefits of a Non-QM Loan

• Flexible income documentation (e.g., bank statements instead of tax returns)
• Alternative approval paths for those denied traditional mortgages
• Lower down payment options (compared to hard money loans)
• Opportunity to invest or buy sooner, even with financial irregularities

This loan type can be a game-changer for self-employed professionals, entrepreneurs, or anyone with non-traditional income sources.

What are the requirements for obtaining a Non-QM Loan?

Non-QM loans vary based on the individual requirements of the lender, but there are certain factors that are common across most non-qualified mortgage issuance. Borrowers will need to provide documentation verifying their income, employment history, and credit score. Non-QM loans also often carry higher interest rates and fees than traditional mortgage loans, as they are considered riskier by lenders.

Borrowers should also expect a thorough underwriting process, as lenders will want to be sure that they can afford to repay the loan.

Depending on the type of documentation, Non-QM loans may require a significant down payment when it comes to financing the loan. While the exact percentage may vary, borrowers should expect to pay up to 15 to 20% of the home's purchase price as a down payment.