Self-employed? Real estate investor? Foreign national? Get approved without traditional income documentation. Our most popular programs include the Houston bank statement loan program, DSCR loans, and investment property loans. They also fit gig and 1099 workers and buyers rebuilding after a bankruptcy. Brandon serves buyers across Houston and its northwest suburbs, including Cypress, Tomball, and Spring.
Not sure which program fits? Find your program in two questions.
A non-QM loan is a Houston mortgage that qualifies you on alternative documentation instead of the standard agency rules, usually because your income is real but your tax returns don't show it. The main programs are bank statement, DSCR, 1099-only, asset depletion, ITIN, foreign national, and recent credit event. Every one is still underwritten to a real ability to repay, so this is not a subprime product.
Alternative mortgage products designed for borrowers who do not fit traditional lending guidelines.
Qualify using 12-24 months of bank deposits instead of tax returns. Built for self-employed borrowers.
Qualify based on the property rental income, not your personal income. No W-2s or tax returns.
Financing for rental properties, fix and flips, and portfolio expansion in Houston.
Home loans for non-US citizens. ITIN borrowers, visa holders, and international investors.
Understanding the difference between qualified and non-qualified mortgage products.
| Feature | Traditional Mortgage | Non-QM Loan |
|---|---|---|
| Income Documentation | Tax returns, W-2s, pay stubs | Bank statements, rental income, assets |
| Self-Employed Friendly | Limited options | Designed for self-employed |
| Investment Properties | Max 10 financed properties | No limit on properties |
| Interest Rates | Lower rates | Set by program, credit, and market conditions. |
| Loan to Value | Up to 97% | Up to 90% |
| Credit Score | 620-680 minimum | 580-660 minimum |
| Approval Speed | 30-45 days | 21-30 days typical |
This is the question underneath every non-QM conversation, because the programs are not lighter on documentation, they just ask for different documentation. Here is what each path actually wants from you.
On a bank statement loan, we use 12 or 24 months of personal or business bank statements and apply an expense factor to the deposits to arrive at qualifying income. Your write-offs never enter the calculation, which is the whole point for a business owner whose returns understate what the business actually produces. Some files pair that with a CPA-prepared profit and loss statement covering the same period, which can sharpen the income picture when the deposits alone look lumpy.
On a 1099 program, the documentation is one to two years of your 1099s rather than full returns, which suits contractors and consultants who are paid cleanly on a single form and don't want the deduction analysis running against them.
On a DSCR loan, your personal income is not the subject at all. The file is documented with the property's signed lease, or with a market rent analysis when the unit is vacant, and the ratio between that rent and the housing cost is what qualifies the deal.
On an asset depletion file, we work from asset statements, and a documented balance is converted into a monthly income figure under the program's formula, which is how retirees and borrowers living off investments qualify without a paycheck.
Every one of these gets confirmed against your specific file before anything is promised, because the exact averaging period, the expense factor, and the documentation window vary by investor. Send me what you already have and I'll tell you which path your paperwork actually supports.
A high debt to income ratio is one of the most common reasons a conventional file gets turned down, and it is one of the things non-QM programs are built to look at differently, either by calculating your income from something other than a tax return or by allowing a higher ratio than conforming guidelines do.
The short version is that non-QM is for people whose finances are strong and whose paperwork is unusual. In practice that comes down to a handful of situations I see over and over.
Self-employed owners are the largest group by far, especially the ones whose CPA did a good job and whose qualifying income collapsed as a result. Right behind them are 1099 contractors and gig earners whose income is steady but whose documentation does not look like a paystub.
Investors are the second big group, usually because they have passed the property count a conventional loan will allow, or because they want to close in an LLC, and DSCR solves both. Foreign nationals and ITIN holders come next, qualifying with alternative credit and documentation rather than a Social Security number and a US credit file.
Then there are borrowers with a recent credit event behind them, a bankruptcy or a foreclosure that has not seasoned long enough for agency guidelines yet, who are otherwise perfectly capable of carrying the payment.
The group people rarely expect on this list is 1099 physicians and dentists. Hospitalists, locums, and dental associates are so often paid as independent contractors now, and when the retail doctor program demands two years of tax returns that a first-year attending simply does not have, non-QM is what bridges the gap until the history exists.
Down payment and credit tiers differ by program and get confirmed on your file rather than quoted off a page, so if you see yourself in any of the situations above, the fastest thing is a conversation about which lane fits.
If traditional lenders have said no, non-QM may be your path to homeownership.
Business owners, freelancers, contractors, and entrepreneurs who write off expenses and show lower income on tax returns.
Landlords and property investors who want to qualify based on rental income rather than personal W-2 wages.
Non-US citizens, ITIN holders, and visa workers looking to purchase property in Houston.
Retirees with significant assets but limited monthly income who want to use assets to qualify.
Food service business owners with high cash flow but heavy write-offs that reduce taxable income.
Beauty industry professionals whose tax returns do not reflect their actual earning capacity.
Getting approved for a non-QM loan is straightforward when you work with a specialist.
Tell me about your situation. I will identify the right non-QM product for you.
Bank statements, business docs, or rental agreements. No tax returns needed.
Receive your pre-approval letter, typically within 24-48 hours.
Finalize your loan and get the keys. Most non-QM loans close in 21-30 days.
A non-QM loan is a mortgage that does not meet the Consumer Financial Protection Bureau's definition of a Qualified Mortgage. The difference is in how income gets documented. Traditional qualified mortgages require W-2s, tax returns, and pay stubs. Non-QM loans accept alternative documentation such as bank statements, rental income from investment properties, asset statements, or profit-and-loss statements. You still go through underwriting and must demonstrate an ability to repay. The loan simply uses different paperwork to prove your financial capacity. Non-QM loans serve self-employed borrowers, real estate investors, foreign nationals, and retirees with assets who have strong finances but cannot qualify through standard documentation. They are available for primary residences, second homes, and investment properties.
Non-QM loans are designed for borrowers whose income is difficult to document through traditional methods. Self-employed business owners, freelancers, and contractors who write off expenses qualify using bank statements instead of tax returns. Real estate investors qualify using rental income through DSCR programs. Foreign nationals and ITIN holders qualify with alternative credit documentation and larger down payments. Retirees with significant assets but limited monthly income qualify through asset depletion programs. Credit score requirements vary by program but generally start at 580 to 620 depending on the product. Loan to value limits range from 70% to 90% based on loan type, credit score, and property use. If a traditional lender has turned you down because of how your income is documented rather than whether you can afford the payment, a non-QM loan is likely the right path.
How much you need to bring in depends on which non-QM product you use. Bank statement loans generally reach up to 90% loan to value on a primary residence and up to 80% on an investment property. DSCR loans generally reach up to 85% loan to value, and the pricing improves as you move toward 75% or lower. Foreign national loans usually cap around 80% loan to value depending on your visa status and credit history. Asset depletion loans typically land around 80% loan to value. Your credit score moves that ceiling too, so a stronger score can reach the top of a program's range while a thinner file may need to come down a tier on the same program. Across every non-QM product, a lower loan to value gives you better pricing.
Non-QM pricing is set by the program, your credit profile, and market conditions, and it often runs somewhat higher than conventional because the lender is taking on more documentation flexibility, but the honest answer depends on your file, and for a self-employed borrower the non-QM loan that closes usually beats the conventional loan that gets declined. These loans are held in portfolio or sold to private investors rather than being purchased by Fannie Mae or Freddie Mac, which is why the pricing works differently than an agency loan. Your credit score, your loan to value, the product you use, and how you will occupy the property all move where you land. Plenty of borrowers also refinance into a conventional loan after a year or two once they can document income traditionally, and I like to map that exit path with you before we close the first loan.
No. Non-QM loans and subprime loans are different products. Non-QM means the loan does not meet the CFPB's Qualified Mortgage definition, primarily because income is verified through alternative documents rather than tax returns. Most non-QM borrowers in Houston are self-employed professionals, real estate investors, or foreign nationals with strong finances. They have the ability to repay. They just document income differently. The subprime loans from the 2008 financial crisis had minimal documentation requirements and no meaningful ability-to-repay standards. Non-QM loans today require thorough underwriting. Lenders verify income through bank statements, rental agreements, or asset documentation. Borrowers must demonstrate they can afford the payment. The regulatory framework that governs non-QM lending was built specifically to prevent the practices that caused the subprime collapse.
A bank statement loan qualifies you based on your personal or business income, proven through 12 to 24 months of bank deposits. A DSCR loan qualifies based on the rental income of the property you are buying, with no personal income documentation required at all. Bank statement loans work for self-employed borrowers purchasing any property type, including a primary residence. DSCR loans work for investors buying income-producing rental properties. If you earn strong personal income but your tax returns understate it due to write-offs, a bank statement loan is the right fit. If you are buying a rental property and want to keep your personal finances completely out of the equation, DSCR is the better product. Some borrowers use both programs across their portfolio, using bank statement for their home and DSCR for their rentals.
Yes. Several non-QM programs work for primary residence purchases. Bank statement loans, profit-and-loss loans, asset depletion loans, and ITIN mortgage programs all allow you to buy a home you will live in. The most common non-QM primary residence borrowers in Houston are self-employed business owners, independent contractors, and visa holders who cannot document income through conventional methods. Non-QM primary residence loans reach as high as 90% loan to value for bank statement programs with strong credit. DSCR loans are the main non-QM product that does not apply to primary residences, as they are designed specifically for investment properties. If you are self-employed and buying a home to live in, a bank statement loan is typically the most straightforward non-QM path.
Non-QM covers bank statement loans for self-employed borrowers, DSCR loans for investors, asset depletion loans for people living off savings or investments, profit and loss loans for owners with clean books, and ITIN or foreign national loans for buyers without a Social Security number. Each swaps standard agency rules for alternative documentation. I'll match your situation to the right one.
Often, yes. A lot of borrowers use a non-QM loan as a bridge to buy now, and many borrowers later refinance into a conventional loan once their documentation situation changes, when the numbers make sense for their file. Most files get there after a year or two, once tax returns, seasoning, or credit catch up, and there's generally no penalty on the conventional side for making that move. I like to map out that exit path with you before we even close the first loan.
It depends on the program rather than one number. Most non-QM products start somewhere in the 580 to 620 range, and the floor moves with your down payment tier and how the property will be used. DSCR and foreign national files set their own thresholds. We confirm the exact minimum on your file rather than working off a published figure.
Usually 21 to 30 days, which is often quicker than a conventional file because there are no tax transcripts to wait on. The real timeline depends on how fast the bank statements, lease, or asset statements come back and how clean the appraisal is. I will give you a realistic date once I have seen the file.
In practice, most clients land on one of a few non-QM paths: a bank statement loan for self-employed income, a DSCR loan or broader investment property loan for rentals, an asset depletion loan when your wealth sits in accounts instead of a paycheck, a 1099 mortgage for independent contractors, or a foreign national loan if you are buying from outside the U.S. You can compare them all on the Houston loan programs page.
The six reasons banks say no, the loan programs they never mention, and the five moves that turn a denial into an approval. Free and no obligation.