Non-Qualified Mortgage
When traditional lenders say no, we say yes
Not every great borrower has a W-2, and not every great property fits a conventional box either. If you're self-employed, an investor, retired, your income just doesn't fit a conventional box, or you're financing a unique or non-warrantable property — you still have options. At Team Aronheim, we help people like you find the right loan every day.
- Alternative income documentation (bank statements, 1099s, assets, DSCR)
- Flexible qualification guidelines
- Programs for self-employed borrowers and investors
- Financing for unique and non-warrantable properties
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What we can do for you:
- Bank statement loans, 1099 mortgages, Investor Cash Flow (DSCR), Asset Qualifier loans, and more
- Backed by CrossCountry Mortgage™ — America's #1 Retail Mortgage Lender for three years running
- Loan amounts up to $3M depending on program — up to $5M available on an exception basis — fast pre-qualification, same-day answers often available
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What Is a Non-QM Loan?
A non-QM loan — short for non-qualified mortgage — is a home loan that doesn't meet the income documentation standards set by the CFPB for "qualified mortgages." That doesn't mean it's risky or predatory. It simply means we use a different method to verify your ability to repay.
Conventional loans want W-2s, two years of tax returns, and strict debt-to-income ratios. That's fine if you have all of that. But millions of creditworthy Americans don't earn income that way — and non-QM exists specifically for them.
Non-QM isn't only about unique income — it also opens the door to unique properties. Non-warrantable condos, rural or large-acreage parcels, log homes, mixed-use buildings, and other properties that don't fit conventional guidelines are all things we can finance.
- No W-2 or tax return required — qualify with bank statements, 1099s, or liquid assets
- Loan amounts may exceed $3M depending on the program and your qualifications — up to $5M on an exception basis
- Many non-QM programs do not require traditional mortgage insurance
- Available for primary residences, second homes, and investment properties
- Financing available for unique properties: non-warrantable condos, rural/large-acreage parcels, log homes, and mixed-use buildings
- Multiple qualification paths: income, assets, or rental cash flow (DSCR)
- Solutions available for foreign nationals and ITIN borrowers
Get a personalized non-QM mortgage quote from Team Aronheim at CrossCountry Mortgage. No obligation — just real answers about which program fits your income and what your payment would look like.
Who Qualifies for a Non-QM Loan?
The borrowers I work with most often aren't struggling with bad credit. They're successful people whose income just doesn't translate neatly onto a 1040. If that sounds familiar, keep reading.
Self-Employed Business Owners
You write off expenses. That's smart business — but it makes your taxable income look smaller than what you actually earn. A bank statement loan uses 12–24 months of your actual deposits to calculate qualifying income. We look at your real cash flow, not what the IRS sees.
Freelancers, Contractors & 1099 Workers
Gig workers, consultants, real estate agents, and commission-based earners all face the same problem: W-2s don't tell your story. A 1099 mortgage qualifies income using your 1099 statements — no tax returns required, no averaging of write-down years.
Real Estate Investors
An Investor Cash Flow (DSCR) loan qualifies based on the rental income of the property — not your personal income. If the rent covers the mortgage payment, you can qualify. That's it. No W-2, no tax returns, no personal income documentation.
Retirees & High-Net-Worth Individuals
You have the assets — you just don't have a paycheck. An Asset Qualifier loan uses your liquid assets to qualify. No liquidation required. Your money stays invested.
Foreign Nationals & ITIN Holders
Non-U.S. citizens purchasing U.S. property can access dedicated non-QM programs through DSCR or Asset Qualifier options — no U.S. credit history required for foreign nationals.
Borrowers with Recent Credit Events
Some programs allow financing sooner after a bankruptcy, foreclosure, or short sale than conventional loans. We have exception-friendly underwriting — roughly 50% of what we close for non-QM involves some kind of exception.
Non-QM Loan Rates
Yes, non-QM rates are a bit higher than conventional. That's the trade-off for flexible qualification. But here’s the thing: for most of my clients, the question isn't "what's the rate?" — it's "can I qualify at all?" When the alternative is not getting the loan, a slightly higher rate looks a lot different.
What Affects Your Rate?
- Credit score — the biggest pricing variable (740+ gets the best; tiers down to 620)
- Down payment / LTV — more equity means a lower rate
- Loan type — bank statement and 1099 loans price closer to conventional; DSCR and foreign national carry more margin
- Documentation — 24-month bank statements typically price better than 12-month
- Property type — investment properties price higher than primary residences
- Loan amount — jumbo non-QM (over $2M) may carry additional pricing
The best way to know your rate is to ask me directly. I compare pricing across multiple non-QM lenders to find the most competitive option for your specific program, credit profile, and property type.
Non-QM rates are typically higher than conventional mortgage rates, but pricing varies based on credit score, down payment, property type, and loan program.Get Pre-Qualified Today
Investor Cash Flow Loan (DSCR)
This is one of my favorite programs for real estate investors. The DSCR loan — Debt Service Coverage Ratio — qualifies based on the rental income of the property, not your personal income. No W-2. No tax returns. No personal income documentation at all.
Key Features
- No personal income documentation required — qualify entirely on rental income
- Single-family, 2–4 units, condos, short-term rentals (Airbnb/VRBO) — all eligible
- Loan amounts $100K–$3M, max LTV 85%, no max DTI
- Down payment from 20–25%
- LLC vesting accepted
- Closes in a matter of weeks — minimal documentation, fast turn times
Non-QM Loan Types
Non-QM isn't a single product — it's a family of programs, each designed for a specific situation. Here's a breakdown of what's available through Team Aronheim at CrossCountry Mortgage.
Bank Statement Loan
Qualifies self-employed borrowers using 12 or 24 months of bank statements instead of tax returns. We average your monthly deposits to calculate qualifying income — which usually reflects your real earnings far better than a heavily deducted tax return.
- 12-month or 24-month options; personal or business bank statements accepted
- Expense ratio applied to calculate net qualifying income
- Loan amounts $100K–$3M, down payment from 10%, max DTI 50%
1099 Mortgage
Uses your 1099 forms — one or two years — to verify income. We use 90% of gross receipts to qualify. No federal tax returns required. Great for real estate agents, tech workers, and independent contractors.
- 1 or 2 years of 1099s accepted
- No full tax returns required
- Loan amounts $150K–$3M, max DTI 50%
Asset Qualifier
A program where qualification is determined based on your financial assets — not a DTI based on income documentation. No liquidation of assets is required (other than funds needed for closing). Eligible assets include checking, savings, marketable securities, retirement accounts, cryptocurrency, CDs, trusts, and more.
- No employment income required — qualify entirely on liquid assets
- Ideal for retirees, recent business sellers, or those between jobs
- Loan amounts $100K–$3M, max LTV 90%
Profit & Loss (P&L) Loan
Uses a CPA-prepared P&L statement — covering 12 or 24 months — to document qualifying income. Simple path for business owners with clean books but complex tax returns. Must be prepared by a CPA, EA, or CTEC.
- Max LTV 80%, min FICO 680, loan amounts $100K–$2M
WVOE (Written Verification of Employment)
Streamlines income verification by going straight to the employer. If your income is inconsistent or documentation is complex, your employer fills out a written verification — that's it.
- Max LTV 80%, min FICO 680, loan amounts $100K–$2M
Full Doc (Non-QM)
An alternative way to qualify borrowers who can’t meet agency conforming or prime jumbo requirements — because of a recent credit event, high DTI, non-warrantable condo, or other non-standard factor. Traditional documentation, non-standard guidelines.
- Max LTV 90%, min FICO 620, max DTI 55%
Non-QM Loan Requirements
Non-QM requirements vary by program, and because there's no single agency setting the rules, guidelines differ by lender. That's exactly why working with someone who knows these programs inside and out makes a real difference.
Down Payment Requirements
- Bank Statement / 1099 loans: 10% down with strong credit
- Asset Qualifier loans: 20–25% down
- DSCR loans: 20–25% down
- Borrowers with lower credit scores or recent credit events: up to 30% down
Property Requirements
- Primary residences, second homes, and investment properties — all eligible
- Single-family, condos, townhomes, 2–4 unit properties, non-warrantable condos and condotels
- No geographic restrictions; must meet standard appraisal requirements
Debt-to-Income (DTI) Ratio
- Bank Statement / 1099 / Asset Qualifier programs: DTI up to 50–55% in some cases
- DSCR loans: Personal DTI is not calculated — only the DSCR ratio matters
Non-QM vs. Conventional vs. FHA vs. VA vs. USDA
The right mortgage depends on your income documentation, credit profile, property type, and goals. Here's how non-QM stacks up against the most common alternatives.
| Feature | Non-QM Loan | Conventional | FHA Loan | VA | USDA |
|---|---|---|---|---|---|
| Income Verification | Bank statements / assets / P&L / DSCR | W-2 / tax returns | W-2 / tax returns | W-2 / tax returns | W-2 / tax returns |
| Min. Credit Score | 620+ | 620 | 580 | N/A (no minimum) | 640 |
| Min Down Payment | 10–25%+ | 3% | 3,5% | 0% | 0% |
| DTI Requirements | Flexible / waived for DSCR | Up to 50% | Up to 57% | Up to 62% | Up to 41% |
| Mortgage Insurance | Typically none | PMI if <20% down | 1.75% upfront + 0.55%/yr MIP (0.50%/yr if 5%+ down) | No | 0.35%/yr |
| Self-Employed Friendly | Yes — designed for it | Difficult | Difficult | Difficult | Difficult |
| Loan Limits | Up to $3M ($5M on exception) | Varies annually by county | FHA limits vary by county | No limits | County limits |
| Best For | Non-traditional income, unique properties, investors | Strong W-2 borrowers | Lower credit / first-time buyers | Veterans & active military | Rural/suburban buyers |
Real-World Non-QM Scenarios
These are the types of clients I help every week. If any of these sound like you, let's talk.
Self-Employed Business Owner
Scenario A
Marcus owns a marketing agency and writes off significant business expenses. His taxable income is $48,000/year — not enough to qualify for a $450,000 conventional loan. His bank statements show $18,000/month in gross deposits. Using a 24-month bank statement loan, his qualifying income reflects actual cash flow — and he closes on his dream home.
Real Estate Investor (DSCR)
Scenario B
Elena is growing her rental portfolio and wants to add a duplex. She already has 6 properties financed and her tax returns are complex. A DSCR loan requires no personal income documentation — only a signed lease showing the rent covers the PITIA. Elena closes without submitting a single tax return.
Retired Professional
Scenario C
Richard retired at 62 with $2.1M in investment accounts. His monthly income looks modest on paper — not enough to qualify conventionally for a $550,000 purchase. Using our Asset Qualifier program, his liquid assets are used to qualify directly — no income required, no liquidation needed. He closes comfortably.
FAQ
What is a non-QM loan?
A non-QM loan (non-qualified mortgage) is a home loan that doesn’t meet the standard income documentation requirements for conventional qualified mortgages. Instead of W-2s and tax returns, non-QM lenders use alternative income verification — bank statements, 1099s, rental income (DSCR), or liquid assets. Non-QM also covers unique properties — non-warrantable condos, rural/large-acreage parcels, log homes, and mixed-use buildings — that don't fit conventional guidelines. These are creditworthy products for creditworthy borrowers and properties.
Who qualifies for a non-QM loan?
Self-employed business owners, freelancers, contractors, real estate investors, retirees with significant assets, foreign nationals, ITIN holders, and borrowers with recent credit events. If your income is real but hard to document conventionally, there's likely a non-QM program that works for you.
What is a bank statement loan?
A bank statement loan qualifies income based on 12 or 24 months of bank deposits rather than tax returns. Especially useful for self-employed borrowers who write off significant expenses, resulting in lower taxable income than actual cash flow.
What is a 1099 mortgage?
A 1099 mortgage qualifies income using recent 1099 forms rather than W-2s or federal tax returns. We use 90% of gross receipts. Ideal for contractors, consultants, commission-based earners, and gig workers.
What is a DSCR loan?
A DSCR (Investor Cash Flow) loan qualifies a real estate investor based on the rental income of the subject property — not personal income. Minimum DSCR is 0.75 (at 70% LTV). A ratio of 1.0 means rent fully covers the payment. No W-2, no tax returns, no personal income docs.
What is an Asset Qualifier loan?
An Asset Qualifier loan allows you to qualify using your liquid assets — checking, savings, marketable securities, retirement accounts, crypto, CDs, and more — without needing to show income. No liquidation required. Ideal for retirees and high-net-worth individuals.
What credit score do I need for a non-QM loan?
Most non-QM programs require a minimum credit score of 620. Credit score tiers start at 740+ (best pricing) and step down through 720, 700, 680, 660, and 620. Below 620 may be possible through exception approval. A higher score directly translates to better rate and terms.
How much down payment is required?
Bank statement and 1099 programs may start at 10% for strong-credit borrowers. DSCR and Asset Qualifier loans typically require 20–25% down. Non-QM loans do not offer 0% down options.
Are non-QM rates higher than conventional?
Yes — generally 0.50%–1.50% higher, depending on the program and borrower profile. But for many non-QM borrowers, the choice is really between qualifying or not qualifying — which makes that comparison less relevant.
Can I use a non-QM loan for an investment property?
Absolutely. Non-QM loans are available for primary residences, second homes, and investment properties. DSCR loans are specifically designed for investment properties. We allow closing in an LLC, trust, or corporation.
What is the maximum loan amount?
Non-QM loans are not bound by conventional loan limits. Most programs go up to $3M, and on an exception basis we can go as high as $5M. This makes non-QM a common choice for high-value purchases in expensive markets.
How do I get started with Team Aronheim?
Reach out for a free consultation. I’ll review your income type, credit profile, and goals to identify the best non-QM program and lender for your situation. Same-day pre-qualification is often available.
Non-QM lending is complex. I've built my practice around knowing these programs better than anyone — and using that knowledge to get deals done that other lenders turn away.
Prefer to talk? Call us: +1 720-200-5464