Page last updated: July 2026 · Rates and program guidelines current as of publish date
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Alternative Documentation

Non-QM Loans

Non-QM (non-qualified mortgage) loans use alternative ways to verify your ability to repay — rental income, bank deposits, or liquid assets — instead of the tax returns and pay stubs conventional loans require. Non-QM lending grew from roughly 5.21% to 8.0% of all U.S. mortgages between July 2024 and July 2025, according to National Mortgage Professional, and non-QM securitization volume hit a record high in 2025.

8.0%
Non-QM share of all U.S. mortgages, July 2025, up from 5.21% a year prior
Record
High for non-QM securitization volume in 2025 (HousingWire)
4+
Distinct Non-QM categories serving different borrower profiles
The Non-QM Category, Broken Down

Four Programs Under the Non-QM Umbrella

DSCR Loans

For real estate investors. Qualify on the property's rental income, not your personal income.

Bank Statement Loans

For self-employed borrowers. Qualify on 12–24 months of deposits instead of tax returns.

Asset Depletion Loans

For asset-rich, income-light borrowers. Qualify using liquid assets converted into a qualifying income figure.

Interest-Only Loans

Lower initial payments by paying interest only for a set period before principal payments begin.

Not Sure Which Non-QM Program Fits?

We review your situation — whether it's an investment property, self-employment income, or asset position — and match you to the right program.

Why Non-QM Exists

Not a Scam, Not a Workaround — a Different Standard

1

Regulated, Not a Loophole

Non-QM loans are fully regulated products from licensed lenders using different, legitimate ways to verify repayment ability.

2

Built for Real Income Situations

Investors, the self-employed, and asset-rich retirees often don't fit conventional tax-return-only underwriting — even with strong finances.

3

Institutionally Backed

Non-QM securitization volume hit a record high in 2025, reflecting substantial institutional confidence in the category.

Know Which Program You Need Already?

Jump straight to the specific Non-QM program that matches your situation.

DSCR Loans →   Bank Statement →
Frequently Asked Questions

Non-QM Loans, Explained

What is a Non-QM loan?
Non-QM refers to home loans that don't meet the CFPB's standard qualified mortgage documentation requirements. They use alternative ways to verify repayment ability, such as bank deposits, rental income, or liquid assets. Non-QM lending grew from roughly 5.21% to 8.0% of all U.S. mortgages between July 2024 and July 2025, according to National Mortgage Professional.
Is a Non-QM loan riskier or a scam?
No. Non-QM loans are fully regulated mortgage products from licensed lenders using different, legitimate documentation methods. Non-QM securitization volume reached a record high in 2025, reflecting substantial institutional confidence in the category, according to HousingWire.
What are the main types of Non-QM loans?
The main categories include DSCR loans for investment properties, bank statement loans for self-employed borrowers, asset depletion loans for asset-rich borrowers, and interest-only loans. Each serves a different borrower profile.
Find Your Program

Let's Find the Non-QM Program That Fits

Private consultation with Kelly or Ray Nadeau. We'll review your situation and match you to the right Non-QM category — no obligation.

📞 321-321-9455 · Kelly Nadeau NMLS #1027618 · Ray Nadeau NMLS #1027617
Kelly Nadeau NMLS #1027618 | Ray Nadeau NMLS #1027617 | Equity Smart Home Loans NMLS #856170 | Equal Housing Lender
Not a commitment to lend. All loans subject to credit approval and program guidelines. Qualification pathway and income calculation methods vary by program. Rates and programs subject to change without notice.