When traditional rules don’t fit
Not every financially responsible borrower fits neatly into the “qualified mortgage” box. If you’re self-employed, an investor, or someone with strong assets but unconventional income, a Non-QM loan may be exactly what you need.
Non-QM doesn’t mean risky or subprime. It simply means the loan uses alternative ways to evaluate ability to repay—beyond standard W-2s and tax returns.
What Is a Non-QM Loan?
A Non-QM (Non-Qualified Mortgage) loan is a mortgage that falls outside traditional government or agency guidelines. These loans still follow ability-to-repay rules, but they allow lenders to use flexible documentation methods.
Non-QM loans are commonly used by:
- Self-employed borrowers
- Real estate investors
- High-net-worth individuals
- Borrowers with recent credit events
- Buyers with strong assets but uneven income
Popular Types of Non-QM Loans
1. Bank Statement Loans
Income is calculated using 12–24 months of bank deposits instead of tax returns—ideal for business owners who maximize deductions.
2. DSCR Loans
Approval is based on the property’s rental income, not the borrower’s personal income. Perfect for investors.
3. Asset-Based Loans
Borrowers qualify using liquid assets such as savings, brokerage accounts, or retirement funds.
4. CPA-Letter or P&L Programs
Used when income is verified through a CPA or accountant rather than traditional documentation.
Why Borrowers Choose Non-QM Loans
- Flexible income verification
- Faster approvals for complex profiles
- Solutions for borrowers banks often decline
- Access to homeownership or investment opportunities sooner
These loans are about real-world finances, not one-size-fits-all rules.
Trade-Offs to Understand
Non-QM loans may come with:
- Higher interest rates than conventional loans
- Larger down payments
- Slightly higher fees
For many buyers, these are acceptable trade-offs for flexibility and opportunity.
How Affinity Home Lending Helps Non-QM Borrowers
We specialize in matching borrowers with the right Non-QM solution, including:
- Bank statement analysis
- DSCR calculations
- Asset-based planning
- Strategy for refinancing into conventional later
The goal isn’t just approval — it’s smart, sustainable financing.