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    Non-QM Loan Programs

    Your Tax Returns Don't Tell the Whole Story. Your Loan Shouldn't Depend on Them.

    Last updated October 10, 2026

    Bank statement, asset depletion, and 1099/P&L income programs for self-employed borrowers, retirees, 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.

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    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.

    What Is a Non-QM Loan?

    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, or a 1099/P&L history - 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, or 1099/P&L income
    • 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
    Local underwriting insight

    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.

    Four Ways to Qualify Without a Traditional Tax Return Package

    Which program fits depends on how your income actually shows up - deposits, assets, 1099s, or rental cash flow.

    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.

    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.

    No-income-documentation loans for primary homes

    We offer a newer non-QM program for owner-occupied primary homes that does not require income documentation. It still looks at your credit, assets and the property. Maximum loan-to-value of 80%. Minimum credit score and other guidelines may apply. Non-QM loans still follow federal ability-to-repay rules, and all loans are subject to underwriting.

    Program guidelines as of October 10, 2026; subject to change.

    Bank Statement vs. Asset Depletion vs. 1099/P&L

    FeatureBank StatementAsset Depletion1099 / P&L
    Qualifies on12-24 months of bank depositsLiquid assets divided over a set term1099s or a CPA-prepared P&L statement
    Core documentsPersonal or business bank statementsInvestment, retirement, and bank statements1099 forms or signed P&L, plus bank statements
    Tax returns requiredNoNoOften no - program dependent
    Typical borrowerSelf-employed with strong deposits, lower taxable incomeRetirees or high-net-worth borrowers with substantial assetsCommission, freelance, or gig-economy earners
    Best forBusiness owners whose write-offs hide their real cash flowBorrowers whose income doesn't reflect their net worthContractors and 1099 workers without two full tax years

    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.

    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

    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

    Yes. ABS Home Mortgage offers a non-QM program for primary homes that does not require income documentation. It is not a loan without qualifying: the program still looks at your credit, assets and the property, maximum loan-to-value of 80%, and minimum credit score and other guidelines may apply. Non-QM loans still follow federal ability-to-repay rules, and all loans are subject to underwriting. Call us at 630-357-1600 to see whether you fit.

    A non-QM (non-qualified mortgage) loan is a mortgage that doesn't follow the strict income-documentation rules Fannie Mae and Freddie Mac require for a standard conventional loan. Instead of a two-year tax return history and a W-2, non-QM programs qualify you using bank statements, liquid assets, 1099s, or a rental property's cash flow. They're built for self-employed borrowers, investors, and anyone whose income doesn't fit neatly into a conventional underwriting box.

    A bank statement loan qualifies you using 12 or 24 months of personal or business bank statement deposits instead of tax returns. The lender averages your deposits, applies an expense factor to estimate your real cash flow, and uses that number in place of a tax-return income figure. It's built for self-employed borrowers whose deductions make their taxable income look smaller than their actual cash flow.

    Asset depletion takes your liquid assets - checking, savings, brokerage, and eligible retirement accounts - and divides them over a set term (commonly 60 to 120 months) to produce a monthly qualifying income figure. It's designed for retirees or high-net-worth borrowers who hold substantial assets but show little or no traditional income on paper.

    This program qualifies you using one year of 1099 forms or a CPA-prepared profit-and-loss statement instead of two years of tax returns. It's aimed at commission-based salespeople, freelancers, and gig-economy workers who may not have two full years of 1099 history or whose tax returns lag behind their current earnings.

    Most non-QM programs start around a 660 FICO, with the strongest pricing at 700+. Some bank statement and asset depletion programs go down to 620 with a larger down payment or additional reserves. We'll tell you plainly where your score lands before you apply.

    Down payments typically run 10-20% depending on the program, credit score, and property type - higher than a conventional loan's minimum, but manageable for most self-employed buyers. Cash-out refinances usually require you to retain more equity than a rate-and-term transaction.

    Generally yes - non-QM rates typically run somewhat above conventional rates because the loan carries more documentation flexibility and, in some cases, more risk to the lender. For many self-employed borrowers, though, a slightly higher rate on a loan they can actually qualify for beats not qualifying at all on a conventional loan they can't document their way into.

    Bank statement, asset depletion, and 1099/P&L programs can all be used on investment properties, but if you're buying or refinancing a rental and want to qualify purely on the property's rent rather than your personal income, our DSCR loan program is usually the better fit - it skips personal income documentation entirely and qualifies you on the property's cash flow. See our DSCR loans page for full details.

    Most bank statement programs ask for either 12 or 24 months, and the choice affects pricing - 24 months of statements generally gets you a better rate than 12, since it gives the lender a longer income history to average. We'll show you the rate difference between the two so you can decide if waiting to gather more statements is worth it.

    It depends on what your tax returns actually show. If your Schedule C write-offs and depreciation keep your taxable income low, a conventional loan may qualify you for far less than you can actually afford - that's exactly the gap non-QM is built to close. We'll run your numbers both ways and tell you honestly which program gets you a better outcome, rather than steering you toward the one that's easier for us to originate.

    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.

    Get My Rate QuoteStart My ApplicationCall 630-357-1600

    Toll Free: 1-866-666-2378 (866-666-BEST)

    Also see: all loan products · DSCR loans for investment properties · get a rate quote · mortgage calculators

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