What is a Non QM Loan?
Non-QM (Non-Qualified Mortgage) loans are designed for borrowers whose situations don’t fit traditional mortgage guidelines—but who are still strong, responsible buyers. These programs can be a good fit for self-employed clients, real estate investors, or borrowers with alternative income or documentation types.
Rather than relying only on standard W-2s and tax returns, Non-QM options may allow more flexible ways to document your ability to repay, such as:
Bank statement loans
Use personal or business bank statements to help document income instead of traditional W-2s or full tax returns.1099 income qualification
For independent contractors and gig-economy workers whose earnings may not show clearly on a standard pay stub.Alternative income and documentation options
Certain programs may allow qualification based on bank statements, assets, or the property’s cash flow rather than traditional income documentation—especially for investment properties. (Not all programs are available for primary residences; guidelines vary by lender.)Investor-focused financing
Popular with real estate investors and self-employed borrowers, including options that may rely primarily on rental income or projected cash flow from the subject property.Borrowers without a Social Security Number
Some programs are available for ITIN borrowers, E-2 visa holders, and other eligible visa types, subject to specific program guidelines.Title in an LLC or corporation
For qualifying investment properties, some lenders may allow closing in the name of an LLC or corporation, subject to their approval and requirements.
