Non-QM Loan Guide
Mortgages for Self-Employed, Investors, and Borrowers Outside the Conforming Box
Non-QM loans qualify you on what banks IGNORE: bank deposits instead of tax returns, rental income instead of W-2s, asset balances instead of paystubs. If a conventional lender said no, Non-QM probably says yes — at competitive rates close to standard mortgage pricing.
Today's Non-QM Rate
6.00%
/ 6.1% APR
No Tax ReturnsBank Statement Option
Rent QualifiesDSCR for Investors
ITIN OKNo SSN Required
In this guide
Why Non-QM Exists (and Why It's NOT Subprime)
Non-QM ("non-qualified mortgage") loans are for borrowers who don't fit the Fannie Mae / Freddie Mac conforming box — not because their credit is bad, but because their income, structure, or assets don't fit the conventional documentation rules. This is the fastest-growing segment of the mortgage market for a reason: real borrowers with real assets get squeezed out by tax-return-only underwriting.
Alternative Documentation
Qualify on 12-24 months of bank statements, P&L statements from your CPA, 1099 history, asset balances, or rental income. Tax returns aren't required.
Designed for Real Borrowers
Self-employed write-offs that crush qualifying income. Real estate investors with multiple properties. Foreign nationals. Recent credit events. ITIN borrowers. Non-QM serves them all.
Not Subprime
Non-QM is NOT the loose 2005-2007 lending that caused the crisis. It's documented underwriting with verified income and assets — just using categories conventional ignores. Default rates track conventional, not subprime.
Competitive Rates
Non-QM rates typically run 0.25-0.75% higher than conventional — not the 2-3% premium people expect. On a $500K loan that's about $75-$220/month more.
Higher LTV Allowed
Many Non-QM products allow up to 90% LTV on primary, 80-85% on investment. No cap on the number of financed properties (vs. Fannie's 10-property limit).
Fast Underwriting
Non-QM lenders specialize in alternative documentation, which means fast turn times: 21-35 days typical close vs. 30-45 days for hard-to-fit conventional files.
The 6 Most Common Non-QM Loan Types
Each Non-QM program qualifies you on a different income source. We match your file to the right program before applying.
Bank Statement Loans
Qualify on 12 or 24 months of personal or business bank statement deposits. No tax returns needed. Perfect for self-employed business owners whose tax returns show low income due to write-offs.
DSCR Loans
Debt Service Coverage Ratio — qualifies the property's rental income against the mortgage payment, NOT your personal income. No tax returns, no employment verification.
ITIN Loans
For borrowers with an Individual Taxpayer Identification Number instead of a Social Security Number. Same standards as conventional, just different ID. Common for immigrants and foreign workers.
Asset Depletion / Utilization
For retirees or high-net-worth borrowers with large investment accounts but low documented income. Qualify on your asset balances divided over the loan term.
1099 / P&L Only Loans
Qualify on 1099 income (gig workers, independent contractors) or CPA-prepared profit-and-loss statements. No 2 years of tax returns required.
Recent Credit Event Loans
Reduced waiting periods after bankruptcy, foreclosure, or short sale. Where conventional makes you wait 4-7 years, Non-QM lenders close as soon as 12 months post-event.
Who Non-QM Is For
If you've been turned down by a conventional lender or told "we can't use your tax returns," one of these scenarios is probably you.
Self-Employed with Write-Offs
You earn $200K but your tax returns show $60K after legitimate deductions. Bank statement loans use your actual deposits, not your taxable income.
Real Estate Investor
Want to buy your 5th, 8th, or 15th rental property? Fannie caps you at 10. DSCR qualifies on rent vs. payment with no property limit.
Recent Bankruptcy or Foreclosure
Don't want to wait 4-7 years to re-enter the market? Non-QM lenders work with you 12-24 months post-event with documentation.
Gig / 1099 Worker
Conventional needs 2 years of tax returns to use 1099 income. Non-QM uses 1099 history directly — perfect for newer contractors.
Foreign National / ITIN Borrower
No Social Security Number but want to buy U.S. real estate? ITIN loans work for permanent residents, immigrants, and foreign nationals.
Retiree with Assets, Low Income
Large brokerage account, low taxable income? Asset depletion loans qualify you based on what you OWN, not what you earn.
Today's Non-QM Rate vs. Standard Conventional
Non-QM rates are competitive — typically 0.25-0.75% above conventional. The flexibility usually wins the math.
| Loan Type | Rate | APR | Best For |
|---|---|---|---|
| 30-Yr Non-QM (Bank Statement / DSCR / ITIN) | 6.00% | 6.1% | Self-employed, investors, ITIN |
| 30-Yr Conventional (reference) | 5.99% | 6.1% | Standard W-2 borrowers |
Free · 24-Hour Turnaround
Get Your Non-QM Quote
A licensed Non-QM specialist will call within 24 hours, ask the 3-4 right questions to match you to the right program, and provide pricing. No credit pull on the first call.
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A licensed Non-QM specialist will call you with the right program match and pricing.
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☎ (877) 870-0007The Non-QM Process
Faster than people expect. Non-QM lenders specialize in alternative documentation, so back-and-forth is minimal.
1
15-Min Call
We match you to the right program (Bank Statement, DSCR, ITIN, etc.) before applying.
2
Doc Submission
For Bank Statement: 12-24 mo bank statements. DSCR: rent + appraisal. ITIN: tax ID + standard income.
3
Underwriting
Non-QM lenders review faster because they're built for alternative docs. Usually 7-14 days.
4
Clear to Close
Final approval. We review your Closing Disclosure 3 days before signing.
5
Closing
Mobile notary at your home, kitchen table, or our office. 30-45 minutes to sign.
Non-QM Pros & Cons
Non-QM is the right answer when conventional says no. Here's the balanced view.
Pros
- No tax returns required for self-employed (Bank Statement)
- Qualify investors on rent vs. payment (DSCR), unlimited financed properties
- ITIN borrowers qualify without an SSN
- Reduced waiting periods after bankruptcy or foreclosure (12-24 months)
- Asset depletion qualifies retirees with portfolios but low income
- 1099-only and P&L-only programs for newer self-employed borrowers
- Higher LTV than expected (up to 90% on primary)
- Rates only 0.25-0.75% above conventional, not the 2-3% premium people assume
- Fast 21-35 day closings — lenders specialize in alternative docs
Cons
- Slightly higher rate than conventional (0.25-0.75%)
- Slightly higher closing costs (extra lender fees on some programs)
- Higher down payment on some programs (DSCR investment = 20-25% down)
- Smaller lender pool than conventional — broker matters more
- Fewer servicers handle Non-QM long-term — your loan may transfer
- Bank Statement loans require 12-24 mo of orderly deposits (large random transfers cause issues)
- Not eligible for FHA/VA streamline refi later — need full refi to switch to conventional
Non-QM FAQ
The most common questions from self-employed borrowers and investors.
Is Non-QM the same as subprime?
No. Subprime loans of 2005-2007 had little or no documentation and accepted very weak credit. Non-QM still requires documented income (just from non-traditional sources), verified assets, and credit scores typically 620+. Default rates on Non-QM track conventional loans, not subprime. The "non-qualified" name means it doesn't fit the federal QM (Qualified Mortgage) rule's strict ability-to-repay box — not that it's reckless.
How much higher are Non-QM rates vs. conventional?
Typically 0.25% to 0.75% higher than the same-day conventional rate. On a $500K loan, that's $75-$220/month extra. Much less than the 2-3% premium people expect. For self-employed borrowers whose tax returns can't qualify them conventional, the rate difference is almost always worth it.
How do Bank Statement loans actually work?
The lender averages 12 or 24 months of deposits from your business or personal bank statements. They apply an "expense factor" (often 50% for service businesses, 75-85% for higher-margin businesses) to estimate your net income. That net income is what they use to qualify you. No tax returns. No write-offs penalize you.
What's DSCR and how does it work?
Debt Service Coverage Ratio. Lender compares the property's monthly rent to its full PITIA (Principal + Interest + Taxes + Insurance + Association dues). DSCR of 1.0 means rent equals payment; 1.25 means rent is 25% above payment. Most lenders want 1.0+, some accept down to 0.75 ("No-Ratio DSCR") at higher rates. Use our DSCR calculator on the homepage to model your scenario.
Can I get an ITIN loan without a Social Security Number?
Yes. ITIN (Individual Taxpayer Identification Number) is issued by the IRS to non-citizens who need to file U.S. taxes. ITIN loans use the same credit, income, and asset standards as conventional loans — just substitute the ITIN for SSN. Common for permanent residents, immigrants, and certain visa holders. Available in all 9 of our licensed states.
How long after a bankruptcy can I get a Non-QM loan?
Standard Non-QM lenders go as short as 12 months post-Chapter 7 discharge with extenuating circumstances; 24 months without. Compare to conventional's 4-year waiting period or FHA's 2 years. The trade-off is a slightly higher rate, but it gets you back into homeownership 2-3 years sooner.
What's the max LTV on Non-QM?
Varies by program. Bank Statement primary residence: up to 90% LTV. Investment DSCR: typically 80% LTV (20% down). ITIN: 80% LTV. Asset depletion: 75-80%. Foreign national: 70-75%. We model your max upfront so you know exactly how much cash you need.
Can I refinance a Non-QM loan into a conventional loan later?
Yes — and many of our borrowers do this. Once your business shows 2 years of strong tax returns, or your credit recovers post-bankruptcy waiting period, refinancing into conventional drops your rate by 0.25-0.75%. Standard refi process, no rate-lock issues, no penalty (most Non-QM loans have no prepayment penalty after year 3).
Are there prepayment penalties on Non-QM loans?
Some Non-QM products have prepayment penalties (PPP) on investment properties — typically 1-3 years, with declining penalty (e.g., 3-2-1 structure). Owner-occupied Non-QM loans rarely have PPPs. We always disclose this upfront so there's no surprise.
How fast can OnPoint close a Non-QM loan?
21-35 days typical. DSCR (no income verification) often closes faster, 18-25 days. Bank Statement loans 25-35 days due to deposit averaging. We work with 20+ Non-QM lender partners and match each file to the lender most likely to underwrite cleanly.
Get a Non-QM Quote in 24 Hours
Free analysis. No credit pull on the first call. We'll match your scenario to the right Non-QM program from 20+ wholesale lender partners and tell you straight which path costs you the least over 5 years.
☎ (877) 870-0007Mon-Fri 8am-7pm PT · Sat 9am-3pm PT · Licensed in 9 states · NMLS #2134550
Terms & Conditions: Non-QM (Non-Qualified Mortgage) loan rates and pricing shown are illustrative based on 720 FICO, primary residence Bank Statement scenario, 80% LTV, 30-year fixed. Actual rate depends on program (Bank Statement, DSCR, ITIN, Asset Depletion, 1099, P&L, Recent Credit Event, Foreign National), credit profile, LTV, property type, occupancy, loan amount, and current market conditions at lock time. Investment property DSCR, ITIN, and Foreign National programs have higher rates and stricter LTV limits. APR includes estimated closing costs. Some Non-QM products on investment properties include prepayment penalties; owner-occupied programs rarely do. Non-QM loans are NOT government-insured. Subject to credit and program approval. OnPoint Mortgage Pro is a licensed mortgage broker; NMLS #2134550. Equal Housing Lender.