Andy BraunNeighborhood Loans · NMLS #667008
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Arizona · Texas · California · NMLS# 667008

Non-QM and Non-Traditional Mortgage Loans

Self-employed, investing, using an ITIN, or just not a fit for a traditional loan? Non-QM programs use other ways to document your income and credit.

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Questions first? Call (520) 495-8989

Applying online is not a commitment to lend or a guarantee of approval. Terms subject to credit approval and underwriting.

Non-QM programs

Loan Options Beyond the Traditional Box

Non-QM stands for non-qualified mortgage. These programs are built for borrowers whose income, credit, or property does not fit standard conventional, FHA, or VA rules. The highlights below are general program guidelines. Every file is reviewed on its own, and guidelines can change at any time.

Bank Statement Loans

Qualify using your bank statements instead of tax returns.

  • Income documented with 12 months of bank statements; no tax returns required.
  • Minimum credit score: 660.
  • Loan amounts up to $3 million.
  • Primary residences and second homes.
  • First-time home buyers welcome.

Often a fit for: Self-employed borrowers, business owners, and consultants.

Program guidelines subject to change.

CPA-Prepared P&L Loans

Document self-employed income with a profit and loss statement from your CPA.

  • Some non-QM programs let you document income with a CPA-prepared profit and loss (P&L) statement instead of full tax returns.
  • A CPA letter may be part of the file, for example to confirm your business and your ownership.
  • Credit, history, property, and documentation requirements vary by program and investor.
  • I will review your situation and tell you which documents the current programs ask for.

Often a fit for: Self-employed borrowers whose tax returns do not show the full picture of their business income.

Program guidelines subject to change.

DSCR Investor Cash Flow Loans

Qualify based on the property’s rental cash flow, not your personal income.

  • Qualification based on property cash flow (DSCR, the debt service coverage ratio: rent divided by the mortgage payment).
  • Minimum DSCR of 1.0. A DSCR from 0.85 to 1.00 requires a minimum 700 credit score and a maximum 80% LTV.
  • No-DSCR option with a minimum 700 credit score and a maximum 75% LTV.
  • Credit scores starting at 600.
  • No personal income or employment verification needed.
  • Up to 80% LTV. Interest-only options available.
  • Loan amounts from $75,000 up to $1.5 million.
  • No limit on the total number of financed properties.
  • Purchase, cash-out refinance, and rate and term refinance.
  • Properties can be held in an LLC’s name.
  • Short-term rentals and VRBO properties are OK (no condo hotels). Non-warrantable condos allowed.

Often a fit for: Real estate investors growing a rental portfolio.

Program guidelines subject to change.

ITIN Loans

Options for borrowers with an Individual Taxpayer Identification Number, including those without a traditional credit score.

  • ITIN Activator (Full or Alt Doc), primary and second homes: no qualifying credit score required.
  • Activator max LTV: 85% for purchase and rate and term (80% with no qualifying score); 75% for cash-out (70% with no qualifying score).
  • Activator max loan amount: $1,000,000 ($750,000 with no qualifying score).
  • Activator income types: W-2, bank statements, P&L, written verification of employment, 1099, or asset utilization.
  • Alternative credit required: a 1x24 or 2x12 trade or payment history.
  • ITIN Accelerator (DSCR), investment properties only: no qualifying credit score required; DSCR of 1.00 or higher.
  • Accelerator max LTV: 80% for purchase and rate and term (70% with no qualifying score); 75% for cash-out (70% with no qualifying score).
  • Accelerator max loan amount: $1,000,000. Gift funds permitted. Seller contributions up to 6%.
  • Tradelines or alternative credit documentation required to support a 1x24 or 2x12 payment history.

Often a fit for: Credit-invisible ITIN borrowers, investors using property cash flow, and self-employed borrowers without traditional documents.

Program guidelines subject to change.

No-Ratio Non-QM Loans

For creditworthy borrowers who do not bank traditionally or have been locked out of traditional financing.

  • No debt-to-income calculation required.
  • No income or employment verification requirements under this program.
  • Loan amounts up to $2 million for qualified borrowers.
  • Minimum credit score: 660.
  • Owner-occupied homes or second homes. First-time home buyers welcome.
  • Up to 80% LTV with a 720 credit score and 12 months of reserves.
  • Cash-out proceeds may be used as reserves.

Often a fit for: Self-employed and small business owners, seasonal and gig-based workers, online or cash-based business owners, and creators such as influencers, artists, and vloggers.

Program guidelines subject to change.

Medical Professional Loans

A primary residence program for doctors and other eligible medical professionals.

  • Fixed-rate and adjustable-rate options.
  • Primary residence only; 1-unit properties only.
  • Purchase and rate and term refinance.
  • Loan amounts up to $2,000,000.
  • Minimum credit score: 680.
  • Up to 100% LTV on loan amounts up to $1,500,000 with a 680 score, or up to $2,000,000 with a 720 score. Up to 95% LTV on loan amounts up to $2,000,000 with a 680 score.
  • Mortgage insurance not required.

Often a fit for: MD, DO, DDS, DMD, ophthalmology (MD or DO), CRNA, psychiatry (MD or DO), PharmD, VMD, and DPM professionals, plus medical residents, fellows, and interns in qualifying programs.

Program guidelines subject to change.

LTV means loan-to-value. Highlights are general program guidelines, not an offer, and are subject to change without notice. Eligibility depends on credit, income or cash flow, assets, property, occupancy, and the program. Not all borrowers will qualify. Some programs are brokered and offered through third-party lenders, subject to those lenders’ underwriting guidelines, credit approval, and program availability. This is not a commitment to lend.

How I help

Complex Income Is My Everyday Work

Traditional First

If a conventional, FHA, or VA loan fits your situation, I will show you that option first. Non-QM is a tool, not a default.

Self-Employed and Investors

Bank statements, CPA-prepared P&Ls, rental cash flow, and assets. I help you pick the documentation path that fits your file.

Straight Answers

With over 20 years in lending, I tell you plainly what a program needs and whether it makes sense for you.

FAQ

Non-QM Loan FAQs

What is a non-QM loan?

A non-QM (non-qualified mortgage) loan is a home loan that does not follow the standard qualified mortgage rules used for most conventional, FHA, and VA loans. Non-QM programs use other ways to show you can repay, such as bank statements, a CPA-prepared P&L, assets, or a rental property’s cash flow.

Who are non-QM loans for?

Non-QM loans often help self-employed borrowers, business owners, gig and seasonal workers, real estate investors, ITIN borrowers, and others whose income or credit does not fit a traditional loan. If a conventional, FHA, or VA loan fits your situation, I will tell you that first.

Can I use a CPA-prepared P&L instead of tax returns?

Some non-QM programs allow income to be documented with a profit and loss statement prepared by your CPA, sometimes with a CPA letter. Requirements vary by program, so call or text me and I will tell you what the current programs ask for.

Do non-QM loans cost more than conventional loans?

Pricing on non-QM loans is often different from conventional loans and depends on the program, your credit, the property, and your down payment. I do not post rates online. I will walk you through real options for your situation before you decide.

Are these programs available in Arizona, Texas, and California?

I am licensed in Arizona, Texas, and California. Program availability can vary by state, property type, and investor, and some programs are offered through third-party lenders.

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Other Loan Programs and Markets

Home · Tucson Mortgage Lender · Texas Home Loans · FHA Loans · VA Loans · First-Time Home Buyer · Refinance · Client Resources

Let’s Talk About Your Non-QM Options

Call or text (520) 495-8989, or start your application online.

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Andy Braun, Senior Loan Officer | Sales Manager, Neighborhood Loans. NMLS 667008. AZ LO-1006099.