A non-QM (non-qualified mortgage) loan is a home loan that does not meet the federal “Qualified Mortgage” standards set by the Consumer Financial Protection Bureau. Lenders must still make a reasonable, good-faith determination that you can repay, but they can verify income and assets in different ways.

Who uses non-QM loans?

• Self-employed borrowers whose tax returns do not show their true income.
• Real estate investors who want to qualify based on a property’s rental income.
• Borrowers with significant assets but irregular income.
• Buyers with a recent credit event who do not yet fit agency guidelines.

Common non-QM loan types

• Bank statement loans: income is based on 12 or 24 months of bank deposits.
• DSCR loans: for investment property, qualifying is based on the rent compared with the payment.
• Asset depletion loans: qualifying based on your savings and investments.

What to expect

Non-QM loans usually have higher rates and larger down payments than conventional or government loans, because the lender takes on more risk. Andy can compare non-QM options side by side with conventional and FHA loans so you can see the real trade-offs.

← All Home Loan Options

Talk to Andy About Your Loan

Have questions or want to see what you qualify for? Call or text Andy at 661-877-4162.

Andy Martinez Jr., Mortgage Loan Originator | NMLS #2171006 · Entity Mortgage and Realty, Company NMLS #2371431 · CA DRE #01978202 · 26254 Prima Way, Santa Clarita, CA 91350 · Equal Housing Opportunity. General information only, not a commitment to lend. Approval, rates and terms depend on credit, income, property and program guidelines and can change.