Non-QM loans (Non-Qualified Mortgages) are flexible home financing options designed for borrowers who don’t fit the traditional mold—like self-employed business owners, contractors, or retirees with strong assets. These programs verify your ability to repay using real-world documentation such as bank statements, 1099s, or investment accounts, making homeownership possible even when conventional lenders say no.

Flexible Non-QM Loan Options for Borrowers Who Don’t Fit the Traditional Mold

Not every borrower fits inside the box that conventional or government loans create. If you’re self-employed, earn commissions, or rely on assets instead of steady paychecks, Non-QM loans may give you the flexibility you need to buy or refinance a home. These programs are fully verified and regulated — they just use different ways to document your ability to repay.

Bank Statement Loan Program

Being self-employed shouldn’t make homeownership harder. With a Bank Statement Loan, the JD.Mortgage team at PRMG can use 12 or 24 months of your personal or business bank statements instead of tax returns. We review your deposits, apply a reasonable expense factor, and calculate qualifying income based on your actual cash flow. You can even combine bank statement income with regular W-2 wages if you also have a job.

1099-Only Loan

If you’re an independent contractor, consultant, or gig worker who receives 1099s, this program lets you qualify using your gross 1099 income — no tax returns required. Perfect for borrowers who work for multiple companies or rely on commissions throughout the year.

12-Month P&L Loan

Some businesses just don’t show well on paper. If your deposits fluctuate, or if you run a cash-heavy business, you can qualify using a 12-month profit and loss statement instead of bank statements. The P&L must be prepared and signed by a CPA or Enrolled Agent (EA), giving you a clean, professional alternative for showing income.

Expanded Access Flex Connect

This program helps borrowers who may have strong income but limited credit or assets. If you’ve had trouble verifying rental history, paying in cash, or meeting traditional reserve requirements, this option uses automated underwriting to offer flexibility where others might say no.

Full Doc Non-QM

Even if you can document your income fully, you might not qualify through Fannie Mae or Freddie Mac because of your employment history, credit, or debt ratio. With Full Doc Non-QM, borrowers can qualify with as little as a 620 credit score, even if they’ve been self-employed for less than five years. Many higher-income borrowers also use this option to avoid the stricter rules of prime jumbo loans.

Asset Qualifying and Asset Depletion Loans

If you have significant savings or investment accounts, you may not need to rely on monthly income at all. Asset Depletion loans use your liquid assets — like checking, savings, or retirement funds — to calculate qualifying income. With Asset Qualifying programs, if your assets cover the loan amount and your monthly liabilities, you can qualify with no debt-to-income ratio at all.

Credit Score Flexibility

Non-QM loans offer more flexibility in how credit scores are used. In many cases, the JD.Mortgage team can use the score of the primary wage earner, even if it’s lower than a co-borrower’s. Some programs even allow using the higher score to help improve eligibility.

Why Borrowers Choose Non-QM Loans

• You’re self-employed and write off most of your income on taxes
• You’re a contractor or earn 1099 income from multiple sources
• Your credit has improved after past challenges
• You have large savings or investment accounts and prefer not to document income
• You were turned down for a conventional loan but have the ability to repay

What This Means for You

The JD.Mortgage team at Paramount Residential Mortgage Group, Inc. (PRMG) helps borrowers find creative and responsible financing options that traditional lenders often overlook. Whether it’s a Bank Statement Loan, Asset Depletion Loan, or DSCR Loan for investors, we’ll help you compare programs that fit your unique situation.

Estimate your payment using our Mortgage Calculator or Contact the JD.Mortgage team to see how Non-QM programs can work for you.

Frequently Asked Questions About Non-QM Loans

What is a Non-QM loan?

Non-QM stands for Non-Qualified Mortgage. These loans follow federal ability-to-repay rules but use flexible documentation methods like bank statements or 1099s instead of W-2s.

Who should consider a Non-QM loan?

Borrowers who are self-employed, rely on commission or contract income, or have strong assets but nontraditional income often benefit most from Non-QM programs.

Are Non-QM loans safe?

Yes. Non-QM programs are fully regulated and require verified ability to repay. They simply allow alternative documentation to prove income or assets.

Can I refinance using a Non-QM loan?

Yes. You can use a Non-QM refinance to consolidate debt, tap home equity, or restructure your loan if your income or credit doesn’t meet conventional standards.

Do Non-QM loans have higher rates?

Not always, but rates can be slightly higher than conventional loans, but Non-QM programs give borrowers access to financing they otherwise might not receive.

Back to Top