Self-employed? Real estate investor? Foreign national? Get approved without traditional income documentation. Our most popular programs include bank statement loans, DSCR loans, and investment property loans.
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 | 1-2% higher than conventional |
| Down Payment | 3-20% | 10-25% |
| Credit Score | 620-680 minimum | 580-660 minimum |
| Approval Speed | 30-45 days | 21-30 days typical |
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. Down payments range from 10% to 30% 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.
Down payment requirements depend on which non-QM product you use. Bank statement loans require 10% to 20% down for a primary residence and 20% to 25% for an investment property. DSCR loans require 15% to 25% down, with better rates available at 25% or more. Foreign national loans require 20% to 30% down depending on your visa status and credit history. Asset depletion loans typically require 20% to 25% down. Your credit score also affects the minimum. A borrower with a 740 credit score may qualify for 10% down on a bank statement loan, while a borrower with a 620 score may need 15% to 20% on the same program. Higher down payments lower your rate across all non-QM products.
Yes. Non-QM loans carry rates 1% to 2% higher than conventional mortgages. The rate premium exists because non-QM loans carry more risk for lenders. They are held in portfolio or sold to private investors rather than being purchased by Fannie Mae or Freddie Mac. The specific rate you receive depends on your credit score, down payment, loan type, and property use. A self-employed borrower with a 740 credit score and 25% down on a bank statement loan will pay closer to 1% above conventional rates. A foreign national with no US credit history and 20% down will pay closer to 2% above. For most non-QM borrowers, the higher rate is the cost of accessing financing that would otherwise be unavailable to them. Many borrowers refinance into a conventional loan after one to two years once they can document income traditionally.
Yes. Many borrowers use non-QM loans as a bridge and refinance into a conventional loan after 1-2 years once they can document income traditionally. This is a common strategy to take advantage of lower conventional rates when your situation changes.
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. Down payments for non-QM primary residence loans start at 10% 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.