Non-QM Loans (2026 Guide)
Flexible mortgage solutions for self-employed borrowers, real estate investors, and anyone who doesn’t fit the traditional lending box.
Bank statements, DSCR, asset-based, and stated-income programs allow you to qualify using real cash flow — not conventional tax returns.
If a bank says no, a Non-QM loan can often say yes. This 2026 Non-QM Guide explains how these loans work, qualification requirements, loan types, pros & cons, and how to structure the smartest approval for your scenario.
What Is a Non-QM Loan?
A Non-QM loan is a mortgage that does not follow the strict documentation and income rules of traditional Fannie Mae or Freddie Mac lending.
Instead of tax returns, W-2s, and pay stubs, Non-QM lenders allow you to qualify using:
- Bank statements (personal or business)
- DSCR (debt service coverage ratio) for investment properties
- Asset-based underwriting
- 1099 income or contract income
- Stated income (in select scenarios)
- P&L-only for business owners
These programs were designed for entrepreneurs, investors, and self-employed borrowers who have strong financials — but not the kind that fit neatly on a tax return.
Types of Non-QM Loans
Bank Statement Loans
Qualify using 12–24 months of business or personal bank statements. No tax returns required.
Learn About Bank Statement Loans →
DSCR Investor Loans
Qualify using rental income or projected market rents. Perfect for investors and landlords.
Asset-Based Loans
Approval based on liquid assets — not income.
1099-Only Mortgage
Use your 1099 forms instead of full tax returns to qualify.
P&L-Only Mortgage
Qualify using a CPA-prepared profit & loss statement only.
Stated-Income Mortgage
For experienced borrowers with strong equity and reserves.
How to Qualify for a Non-QM Loan in 2026
Non-QM loans use common-sense underwriting. Your approval is based on your real financial picture — not tax loopholes or write-offs.
- Credit Score: 620–740+ depending on program
- Down Payment: Typically 10–25%
- Reserves: 3–12 months depending on risk
- Property Type: SFR, condo, 2–4 units, investment property
- Cash Flow: DSCR qualifies based on rental income
- Business Strength: For bank statement or P&L loans
Your specific scenario determines the best Non-QM option — which is why working with an experienced Non-QM strategist is essential.
Non-QM Loan Rates in 2026
Non-QM rates depend on documentation type, credit score, reserves, and property risk.
- Bank Statement: ~6.99%–9.50%
- DSCR: Based heavily on DSCR ratio & market risk
- Asset-Based: Competitive when liquidity is strong
- Stated Income: Higher due to limited documentation
We structure your loan to get the most competitive rate available based on your actual financials.
Who Non-QM Loans Are Best For
- Self-employed business owners
- Real estate investors
- Contractors & 1099 earners
- Borrowers with complex tax returns
- Borrowers buying investment property
- Borrowers wanting to use assets instead of income
- Borrowers recently turned down by a bank
Start Your Non-QM Loan Approval
We specialize in helping self-employed borrowers and real estate investors qualify quickly with minimal friction.
Tell us your income situation, business structure, and goals — we’ll map out the smartest Non-QM options available in 2026.
Non-QM Loan FAQ
Are Non-QM loans risky?
No. They require strong equity, common-sense underwriting, and responsible qualification.
Are Non-QM loans the same as subprime?
No. Subprime allowed unverified income and low equity. Non-QM requires real documentation — just not traditional tax returns.
Is a Non-QM loan temporary?
It can be. Many borrowers refinance into conventional loans once income stabilizes.
Do Non-QM loans report to credit bureaus?
Yes. They function the same as a traditional mortgage in terms of credit reporting.