Non-QM Loans for Borrowers Who Don’t Fit the Traditional Box
Self-employed? Investing in real estate? Working with income that does not look simple on paper? A Non-QM loan may offer a more flexible path to mortgage financing.
Built for unique financial stories
- ✓Helpful for eligible self-employed borrowers and business owners
- ✓Options for investors using rental income
- ✓Alternative documentation may be available
- ✓Personal guidance from an FBKC loan officer
What is a Non-QM loan?
A Non-QM loan, short for Non-Qualified Mortgage, is a mortgage option designed for borrowers who may not meet standard conventional loan guidelines.
That does not mean the borrower is not qualified. It simply means their income, assets, property type, or financial profile may need to be reviewed differently.
Non-QM loans can give lenders more flexibility when evaluating a borrower’s ability to repay, especially when traditional documentation does not tell the full story.
Designed for borrowers with less traditional income
Non-QM financing can be a helpful option for borrowers with strong financial profiles that do not fit neatly inside the standard mortgage box.
Self-employed borrowers
For business owners, freelancers, contractors, and entrepreneurs whose tax returns may not reflect their full cash flow.
Real estate investors
For eligible investors purchasing or refinancing rental properties, including borrowers who may want to qualify based on property income.
Complex income earners
For borrowers with commission, bonus, 1099, seasonal, or fluctuating income that may need a more flexible review.
A more flexible way to look at mortgage approval
Traditional mortgage guidelines work well for many borrowers. But when your financial life is more complex, it may help to work with a lender who can review the bigger picture.
Common Non-QM loan programs
Program availability can vary, but these are some of the most common Non-QM options borrowers ask about.
Bank Statement Loans
May allow eligible self-employed borrowers to qualify using personal or business bank statements instead of traditional tax returns.
DSCR Loans
Designed for real estate investors, DSCR loans focus on the property’s rental income instead of traditional personal income documentation.
Asset-Based Loans
May allow eligible borrowers to qualify using liquid assets, which can be helpful for retirees or high net worth borrowers.
Interest-Only Options
Some programs may offer interest-only payment options for qualified borrowers looking for additional payment flexibility.
Not sure if you fit the traditional guidelines?
That is exactly where a conversation can help. An FBKC loan officer can review your income structure, goals, and available options.
A simple path to explore your options
Your FBKC loan officer will help you understand what documentation may be needed and which options may fit your situation.
Start with your goals
Tell us about your property, income, timeline, and what you are trying to accomplish.
Review documentation
Depending on the program, this may include bank statements, asset statements, rental income details, or other records.
Compare options
Your loan officer will help you understand available loan programs, terms, and next steps.
Move forward
Once your loan is submitted, our team works to keep the process clear and moving toward closing.
Frequently asked questions about Non-QM loans
What does Non-QM mean?
Non-QM stands for Non-Qualified Mortgage. These loans are designed for borrowers who may not meet standard conventional mortgage guidelines.
Are Non-QM loans only for self-employed borrowers?
No. Self-employed borrowers often use Non-QM financing, but these loans may also help investors, retirees, business owners, and borrowers with complex income situations.
Do Non-QM loans require tax returns?
Some Non-QM programs may use alternative documentation, such as bank statements or assets, instead of traditional tax returns. Requirements vary by program.
Can I use a Non-QM loan for an investment property?
Yes. Certain Non-QM programs, including DSCR loans, are designed for eligible real estate investors.
Are Non-QM rates higher than conventional mortgage rates?
Rates and terms vary based on the loan program, borrower qualifications, property type, loan amount, and market conditions. Your loan officer can help you compare current options.
Can first-time homebuyers use Non-QM loans?
In some cases, yes. Eligibility depends on the borrower’s financial profile and the specific loan program.
Flexible financing starts with the right conversation
Whether you are self-employed, investing in real estate, or working with a unique income situation, FBKC Mortgage can help you explore mortgage options designed around your financial picture.
Loan programs, terms, and eligibility requirements are subject to change. Not all borrowers will qualify. This information is for educational purposes only and is not a commitment to lend. Contact an FBKC Mortgage loan officer to review available options for your specific situation.