Loan Program
Non-QM and Self-Employed Loans
Non-QM loans are mortgages underwritten outside standard agency guidelines, using alternatives like bank statements, assets or rental income to document repayment ability. They help self-employed Downriver business owners, contractors and landlords whose tax returns understate real cash flow.
What it is
- Bank statement loans that use deposits instead of tax returns.
- Asset depletion programs that qualify from liquid reserves.
- Investor programs qualified from the property's rental income.
Who it's for
- Self-employed borrowers with significant write-offs.
- Real estate investors expanding a rental portfolio.
- Borrowers with recent credit events who have re-established stability.
Typical requirements
- Usually a larger down payment than agency loans.
- Documentation appropriate to the chosen program, such as 12 or 24 months of bank statements.
- Reserves after closing on most programs.
Guidelines vary by lender and change over time. Meeting these items does not guarantee approval, and all loans are subject to credit and property approval.
Advantages
- Qualification paths that reflect real business cash flow.
- Available for primary homes and investment property.
- Flexible structures across a wide investor set.
Trade-offs
- Rates and fees are generally higher than agency loans.
- Down payment and reserve requirements are larger.
- Guidelines vary considerably between investors.
FAQ
Non-QM and Self-Employed Loans: common questions
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