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Non-QM programs may help borrowers whose income, assets or property cash flow do not fit standard agency documentation. They are not no-document loans, and every option requires underwriting.
Qualifying self-employed borrowers may use eligible personal or business bank deposits to document income. The statement period, deposit treatment and business-expense analysis depend on the program.
Independent contractors may be able to qualify using eligible 1099 income with employer or payer confirmation, without a standard expense-ratio calculation in qualifying scenarios.
Some self-employed business owners may qualify using a 12-month profit-and-loss statement prepared by an eligible tax or accounting professional, without supplying bank statements under that program.
A streamlined option may use employer-verified W-2 earnings without a year-to-date paystub in eligible scenarios. Employment, income continuity, credit, assets and the rest of the file still require review.
Eligible borrowers may use a completed written verification of employment as the principal income record under program-specific rules, including limits on eligible income and debt-to-income calculations.
Borrowers with substantial eligible liquid assets may qualify through an asset-qualifier or asset-depletion calculation rather than traditional recurring income.
Investment-property programs may use eligible property cash flow instead of personal income calculations and may accommodate LLC vesting, first-time investors and qualifying short-term-rental income.
A specialized interest-only option may qualify primarily from property equity rather than income or debt-to-income calculations. This is short-term financing and should be compared carefully with longer-term alternatives and exit plans.
Eligible income sources may sometimes be combined. A 7th Level Mortgage professional can compare documentation paths and request the current wholesale-partner guidelines for the complete borrower and property scenario.
Program features, loan amounts, loan-to-value limits, credit standards, reserves, interest-only availability and property eligibility are subject to change without notice. All loans are subject to complete application, underwriting, borrower qualification and current participating-lender guidelines.
Frequently asked questions
No. Non-QM programs still require underwriting and documentation; they may use different methods to evaluate income, assets or property cash flow.
No. They are often used by self-employed borrowers, investors and others whose documentation does not fit standard agency methods.
General information is useful. A mortgage professional can help you evaluate the facts that apply to you.
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