What Is a Non-QM Loan, and How Can It Help You Qualify?
Last updated October 13, 2026
Bank statement, asset depletion, 1099/P&L and no-income-documentation programs for self-employed borrowers, retirees, visa holders and gig-economy earners across Illinois, Texas, Florida, and Georgia. If you're buying or refinancing a rental property instead, see our DSCR loan program, which qualifies you on rental income rather than personal income.
No two years of tax returns required on most programs. Over $5B funded since 2002.
Program terms as of September 20, 2026; subject to change. Eligibility and closing timing vary by borrower and file. No closing timeline is guaranteed. This is not a commitment to lend.
How Non-QM Loans Work
A non-QM (non-qualified mortgage) loan is a mortgage that sits outside the standard Fannie Mae / Freddie Mac income-documentation rulebook. Instead of two years of tax returns and a W-2, non-QM programs let us qualify you a different way - through bank deposits, liquid assets, a 1099/P&L history, or, on one program, no income documentation at all - depending on which one actually reflects your real financial picture.
These programs exist because a lot of financially strong borrowers don't look strong on paper. Business owners write off legitimate expenses that shrink their taxable income. Retirees live off assets, not a paycheck. Commission and gig-economy earners don't have a clean two-year W-2 history. Non-QM is built for exactly these situations.
If you're financing a rental property rather than your primary residence or a second home, our DSCR loan program is usually the better fit - it qualifies you on the property's rental income instead of any personal income documentation at all.
Non-QM at a Glance
- No two years of tax returns required on most programs
- Qualify on bank deposits, assets, 1099/P&L income, or credit, equity and reserves alone
- Purchase, rate-and-term, and cash-out refinance available
- Primary, second home, and investment properties
- Loan amounts $100K to $3M+
- Investment property? See our DSCR loan program instead
Non-QM Borrowers Look Different in Every State
Choose your state to see how local self-employment patterns and property considerations shape our approach.
Non-QM for Chicago-Area Business Owners
We work with a lot of self-employed borrowers around Chicago and the collar counties - restaurant and small business owners, consultants, real estate agents - whose tax returns show far less income than their bank deposits do. Condo files get the same close read on HOA financials as any other Illinois file.
Five Ways to Qualify Without a Traditional Tax Return Package
Which program fits depends on how your income actually shows up: deposits, assets, 1099s, rental cash flow, or not at all.
Bank Statement Income
Qualify using 12 or 24 months of personal or business bank statement deposits instead of tax returns - built for self-employed borrowers whose write-offs shrink their taxable income.
No Income Documentation
No tax returns, pay stubs or employment verification. You qualify on your credit, your equity and your reserves. For primary homes and second homes; rates are higher than conventional.
How it works →Asset Depletion / Asset Utilization
Turn liquid assets - savings, investments, retirement accounts - into a qualifying income figure. A strong fit for retirees or high-net-worth borrowers with substantial assets but modest reported income.
1099 / P&L Income
One year of 1099s or a CPA-prepared profit-and-loss statement can qualify commission-based, gig-economy, and freelance borrowers who don't fit a traditional W-2 box.
Investment Property Options
Buying or refinancing a rental? Our DSCR program qualifies you on the property's rent instead of your personal income - see our dedicated DSCR loans page for details.
See DSCR loans →No income documentation loans for primary homes and second homes
Our newest non-QM program doesn't document income or employment at all. No tax returns, W-2s, pay stubs or calls to your employer. Instead, it looks at your credit history, your down payment or equity, and the cash you keep in reserve after closing. Maximum loan-to-value of 80% with strong credit, lower as scores drop. It's for primary residences and second homes, not rental properties, and the rate is higher than a conventional loan's. If your paperwork already supports the income you need, a conventional loan is usually the better deal.
Read the full breakdown: who it fits, the credit tiers, and what we still need from you.
Program guidelines as of October 12, 2026; subject to change. Non-QM loans still follow federal ability-to-repay rules, and all loans are subject to underwriting.
Bank Statement vs. Asset Depletion vs. 1099/P&L vs. No Income Docs
| Feature | Bank Statement | Asset Depletion | 1099 / P&L | No Income Docs |
|---|---|---|---|---|
| Qualifies on | 12-24 months of bank deposits | Liquid assets divided over a set term | 1099s or a CPA-prepared P&L statement | Credit, equity and reserves |
| Core documents | Personal or business bank statements | Investment, retirement, and bank statements | 1099 forms or signed P&L, plus bank statements | ID, credit report, sourced down payment, reserve statements |
| Tax returns required | No | No | Often no - program dependent | No |
| Typical borrower | Self-employed with strong deposits, lower taxable income | Retirees or high-net-worth borrowers with substantial assets | Commission, freelance, or gig-economy earners | Income that's real but hard to document |
| Best for | Business owners whose write-offs hide their real cash flow | Borrowers whose income doesn't reflect their net worth | Contractors and 1099 workers without two full tax years | Borrowers who can't or prefer not to document income or employment |
Buying or refinancing a rental property? Our DSCR loan program qualifies you on the property's rent instead of any of the income types above.
Who qualifies for a non-QM loan?
Most non-QM programs look for a credit score around 660+, with select bank statement and asset depletion programs available down to 620 given a larger down payment or extra reserves. Down payments typically run 10-20% depending on the program and property type.
Self-employed borrowers whose tax returns understate their real cash flow are the most common fit for bank statement loans. Retirees and high-net-worth borrowers with substantial assets but modest reported income often do better on asset depletion. Commission and gig-economy earners without two full years of consistent 1099 history frequently fit the 1099/P&L program instead. Borrowers whose income is real but hard to document at all, including some visa holders and people between jobs, may fit our no income documentation program for a primary home or second home.
If your income actually comes from a rental property rather than your own work, none of the above may be the right fit - our DSCR loans qualify you on the property's rent alone.
21 Days
Our average purchase and refinance closing is about 21 calendar days, even on non-QM files - because we have direct access to underwriting instead of routing through a call center.
Company average, not a guaranteed timeline. Varies by file.
Program at a Glance
Real numbers, not marketing fluff. Actual terms depend on which non-QM program fits, your credit, and the property - we'll price your exact scenario in one call.
- Loan Amounts
- $100,000 - $3M+
- Max LTV - Purchase
- Up to 90%, program dependent
- Max LTV - Cash-Out
- Up to 80%, program dependent
- Minimum FICO
- 660 typical (620 case-by-case)
- Documentation
- 12/24-mo bank statements, assets, or 1099/P&L
- Terms
- 30-yr fixed, 5/6 & 7/6 ARM, Interest-Only available
- Property Types
- Primary, second home, and investment
- Reserves
- 3-6 months PITIA typical
What You'll Provide
- Photo ID and credit authorization
- 12 or 24 months of bank statements (bank statement program)
- Investment, retirement, and asset statements (asset depletion)
- 1099 forms or a CPA-prepared P&L (1099/P&L program)
- Business license or CPA letter confirming self-employment, if applicable
- Property insurance quote
- Credit, sourced down payment and reserve statements only (no-income-documentation program)
You won't need all of these at once - we'll tell you exactly which set applies once we know which program fits your file.
Not sure which non-QM program fits, or whether a conventional loan would work better? Get a free quote and we'll tell you honestly.
Non-QM Loan FAQs
Ready to See Which Non-QM Program Fits?
Get a real quote - rate, program, and down payment - based on how your income actually looks, not just what's on your tax return.
Toll Free: 1-866-666-2378 (866-666-BEST)
Also see: all loan products · DSCR loans for investment properties · no income documentation loans · get a rate quote · mortgage calculators
Non-QM loans by state
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