Non-QM Mortgage Loans

Non-QM loans help people who do not fit inside normal mortgage rules. These programs use real income, real credit, and real property numbers so more borrowers can qualify. They are built for self-employed buyers, investors, 1099 workers, business owners, retirees, and anyone with income that does not match a standard W-2 loan.

The PRMG Non-QM platform includes two main categories: Income Qualifying and DSCR. Each category has Core and Plus versions. Core offers better pricing. Plus offers more flexibility. This page gives a full overview of all Non-QM options.

What Makes a Loan “Non-QM”?

Non-QM loans follow different rules than traditional Fannie Mae, Freddie Mac, FHA, VA, or USDA loans. They are designed for real-life income patterns, not old paperwork systems. Non-QM programs can use bank statements, 1099s, P&L statements, assets, rental income, or other forms of documentation to qualify.

They are for borrowers who:

• Are self-employed
• Earn 1099 income
• Have strong deposits but low taxable income
• Want to use assets instead of job income
• Buy investment properties
• Have recent credit events
• Prefer flexible guidelines compared to agency rules

Non-QM Income Qualifying Loans

Income Qualifying loans use different ways to prove your income. These methods help borrowers who have strong earnings but do not show high income on tax returns.

Common Income Documentation Options

• Bank statements: 12–24 months of personal or business deposits
• 1099 income: 12 months of 1099 forms
• CPA P&L: 12–24 month profit and loss statement
• Asset depletion: use savings and investments instead of job income
• Full doc: 1–2 years W-2s or tax returns
• WVOE: verification of employment without paystubs (Plus only)

These programs work for primary homes, second homes, and investment properties.

Expanded Prime vs Non-Prime

Expanded Prime

• Up to 89.99% LTV on primary homes
• Loan amounts up to $3,500,000
• Cash-out up to $1,500,000
• Better pricing
• Cleaner credit history

Non-Prime

• Up to 80% LTV
• Loan amounts up to $1,500,000
• Cash-out up to $500,000
• More recent credit events allowed
• ITIN borrowers allowed

Core vs Plus Programs

Every Non-QM category has a Core and Plus version.

Core (Better Pricing)

• Lower interest rates
• Best for strong credit and stable income
• Higher LTV in many scenarios
• Best fit for clean 12-month housing history

Plus (More Flexible)

• Higher DTI allowed (up to 55%)
• More recent credit events allowed
• More flexible with rural and complex properties
• Foreign nationals allowed
• No-Ratio allowed on DSCR

DSCR Investor Loans

DSCR loans qualify based on the rental income of the property, not the borrower’s own income. These programs are for non-owner-occupied rental properties only.

• Core DSCR: up to 80% LTV with DSCR ≥ 1.0
• Core DSCR: up to 70% LTV with DSCR down to 0.75
• Plus DSCR: up to 85% LTV with DSCR ≥ 1.0
• Plus DSCR No-Ratio: allowed when DSCR is below 0.75
• Cash-out options up to $500,000
• Foreign nationals allowed on Plus

DSCR loans are one of the simplest ways for investors to qualify because income documents are often not required.

Property Types Allowed

• 1–4 unit homes
• Condos, including non-warrantable
• Second homes (Income Qualifying only)
• Investment properties (Income Qualifying & DSCR)
• Certain rural or unique properties (case-by-case)

Common Non-QM Loan Uses

• Buying a home with bank statements instead of tax returns
• Using 1099 income or contract work to qualify
• Qualifying using assets instead of job income
• Buying rental properties using DSCR
• Getting cash-out after major credit events
• Financing non-warrantable condos

Non-QM Loan Advantages

• Flexible income options
• Less strict credit rules
• Higher loan amounts
• Higher LTV options than most banks offer
• Fast approvals with simpler underwriting
• Built for real-world income patterns

Start Your Non-QM Pre-Qual

You can compare Non-QM options quickly with a short online form. We match your income type, credit profile, and goals to the best available Core or Plus program.

Start Your Non-QM Pre-Qual

Non-QM Loan FAQ