Non-QM loan

Who Is a Non-QM Loan For?

Non-QM loans are designed for creditworthy borrowers who may not qualify for a traditional mortgage due to the way their income or finances are structured. This includes:

• Self-employed individuals with irregular income or significant business deductions
• Real estate investors using rental income to qualify
• Foreign nationals without U.S. credit history
• High net-worth individuals with significant assets but lower reportable income
• Borrowers with recent credit events, like bankruptcy or foreclosure, outside of conventional waiting periods
• Retirees living off investment or asset income

Benefits of a Non-QM Mortgage

✅ Flexible Income Documentation

Use bank statements, asset depletion, rental income, or alternative income documentation instead of tax returns or W-2s.

✅ Expanded Credit Options

Recent credit issues or a non-traditional credit profile may not be deal-breakers with a Non-QM loan.

✅ Higher Loan Limits

Often used for jumbo-sized loans, Non-QM products can help you finance high-value properties without conforming loan restrictions.

✅ Tailored Loan Solutions

With more flexible underwriting, Non-QM lenders can structure a loan around your specific situation.

✅ Opportunity for Homeownership or Investment

Perfect for investors and entrepreneurs who have the assets and income but need a loan structure that works with their financial reality.

What Are the Requirements?

Each Non-QM lender sets its own criteria, but common requirements include:

• Credit Score: many investors have different requirements for score. All depends on your situation.
• Down Payment: Minimum of 10–20%, depending on the loan size and borrower profile
• Income Verification: Alternatives like 12-24 months of bank statements, profit and loss statements, or asset depletion models
• Debt-to-Income (DTI): Can be more flexible than traditional loans—some lenders may go above the standard 43%
• Reserves: Often 6–12 months of mortgage payments in savings or liquid assets are required

Is a Non-QM Loan Right for You?

If traditional mortgage requirements don’t reflect your financial reality, a Non-QM loan could be the right fit. These loans are built for flexibility—giving you access to real estate opportunities in the Poconos and beyond without being boxed out by standard loan guidelines.

Have a unique income situation or recently been turned down for a traditional mortgage? Let’s explore how a Non-QM loan can work for you.

Mortgage Options for Self-Employed Borrowers

Being your own boss shouldn't keep you from buying a home or investing in property. While self-employed borrowers may face different challenges when applying for a mortgage, there are several flexible loan options designed to fit your unique financial profile—even if your income doesn’t come with a W-2.

What Types of Loans Are Available for Self-Employed Borrowers?

✅ Traditional (Full Doc) Loans

Self-employed borrowers can still qualify for conventional, FHA, VA, or USDA loans—as long as you can provide full income documentation, typically including:

• Two years of personal and business tax returns
• Profit & loss (P&L) statements
• Bank statements
• Proof of business ownership

Good credit, consistent income, and a manageable debt-to-income (DTI) ratio will help you qualify.

✅ Bank Statement Loans (Non-QM)

Designed specifically for self-employed borrowers, bank statement loans allow you to qualify using 12–24 months of personal or business bank statements instead of tax returns.

Perfect for:

• Freelancers
• Business owners with large write-offs
• Gig workers or 1099 contractors

✅ Profit & Loss (P&L) Statement Loans

Some lenders accept a CPA-prepared P&L statement, sometimes with limited additional documentation, as a basis for income qualification. This is a flexible alternative for borrowers with strong financials but non-traditional income reporting.

✅ Asset Depletion Loans

If you have significant liquid assets (like savings, investments, or retirement funds), an asset depletion loan lets you qualify based on those assets instead of traditional income.

✅ No-Doc / Low-Doc Loans

These are niche products for well-qualified borrowers with strong credit and high down payments, often used for investment or second homes. Income isn’t verified in the traditional way, but these loans typically come with higher rates and stricter requirements.

Benefits of Self-Employed Mortgage Options

📁 Flexible Income Verification

Use your actual cash flow—not just what's on your tax return. Ideal if you deduct heavily for business expenses.

🏠 Access to Homeownership

Whether you're buying a primary home, second home, or investment property, self-employed loan options give you the ability to build wealth through real estate.

🧾 Customized Loan Solutions

There’s no one-size-fits-all. These loans are designed with your unique situation in mind, with options to fit your income style and financial goals.

💸 Competitive Rates Available

Many non-traditional loans now offer competitive rates—especially if you have strong credit, solid reserves, and a larger down payment.

Ready to Buy a Home While Self-Employed?

The Poconos has many small business owners. If you’re self-employed and thinking about buying a home, don’t assume you have to wait or overpay. With the right loan strategy and guidance, you can find financing that works for your situation—without jumping through unnecessary hoops.