A Non-QM loan is a home loan that verifies income with something other than tax returns and W-2s. Self-employed buyers, 1099 earners, real estate investors, and retirees use Non-QM loans to qualify with bank statements, 1099 income, business profit and loss, liquid assets, or rental income instead of the standard agency paperwork. These are fully underwritten loans with real ability-to-repay rules — not the no-doc loans of the past. The JD.Mortgage Team writes the full Non-QM platform through Paramount Residential Mortgage Group: bank statement, DSCR, 1099, P&L, asset depletion, ITIN, and foreign national. Lending in 49 states. New York excluded.
Qualify on the income you actually earn — not what is left after write-offs.
No SSN required. Takes about 2 minutes.
What Is a Non-QM Loan?
A Qualified Mortgage (QM) follows income rules set by the Consumer Financial Protection Bureau — tax returns, W-2s, pay stubs, and tight debt-to-income limits. Most conventional, FHA, and VA loans are QM loans. A Non-QM loan steps outside those rules. The lender still proves you can repay — that never goes away — but the proof can come from bank deposits, 1099s, a CPA profit and loss statement, your assets, or a rental property’s income.
This matters because millions of people earn real money that a tax return makes look small. Business owners write off expenses. Creators get paid across a dozen platforms. Investors hold property in an LLC. Non-QM is a documentation category — not a risk category, and not subprime.
In 2026, a loan becomes “jumbo” above $832,750 in most counties (up to $1,249,125 in high-cost counties). Non-QM programs run well past that line — up to $3.5M on bank statement and asset depletion, and up to $2.5M on DSCR.
Who Qualifies for a Non-QM Loan?
Self-Employed Borrowers
Business owners, freelancers, and consultants whose write-offs shrink taxable income. A bank statement loan uses your actual deposits instead of your tax return. No tax returns required.
Content Creators and 1099 Earners
Creators, contractors, agents, and gig workers paid by platforms or 1099. Bank statement and 1099 income loans count the money when it hits the bank — often two to three times what a tax return shows.
Real Estate Investors
DSCR loans qualify on the property’s rental income — not your personal income, tax returns, or debt-to-income ratio. If the rent covers the payment, the property qualifies. No limit on how many you own.
Asset-Rich, Income-Light Borrowers
Retirees and high-net-worth borrowers with savings, brokerage, or retirement accounts but little monthly paycheck. Asset depletion turns those assets into qualifying income — without selling anything.
The Non-QM Loan Programs
Non-QM is a family of programs, each built for a different income or property situation. Start with the one that matches how you earn — each links to its full page.
Bank Statement Loans
12 or 24 months of personal or business bank statements instead of tax returns. Up to $3.5M. Credit as low as 620 on Non-Prime tiers; 660 unlocks the higher DTI. For self-employed borrowers, creators, and 1099 earners.
DSCR Investor Loans
Qualify on the rental property’s cash flow, not your income. Up to $2.5M. Credit as low as 620 on the Plus tier (660 Core, 700 for first-time investors). LLC vesting and short-term rental (Airbnb) income allowed.
1099 Income Loans
Qualify directly on your 1099 income — contractors, agents, gig workers, and creators paid through platforms. Uses gross 1099 income, no tax returns required.
P&L Statement Loans
Qualify on a CPA-prepared profit and loss statement — the fastest documentation path for established borrowers with clean books. Available with or without supporting bank statements.
Asset Depletion Loans
Convert liquid assets into qualifying income without selling them. Up to $3.5M. Built for retirees and high-net-worth borrowers whose wealth is in assets, not a paycheck.
ITIN and Foreign National Loans
Financing for borrowers using an Individual Taxpayer Identification Number in place of a Social Security number, and for foreign nationals buying U.S. property. DSCR foreign national loans go up to $1.5M.
Alternative AUS
For borrowers who just missed conventional — a refer or caution from the automated system, a minor DTI issue, or a documentation gap. Runs your file with fewer overlays and accepts both standard and flexible income documents.
Non-QM vs. Conventional Loans
Non-QM rates run a little higher than conventional, but the gap has narrowed — often within a quarter to half a point. For a borrower who cannot qualify conventionally, the real comparison is approval versus no approval.
Which Non-QM Program Fits You?
Self-employed? Bank statement or 1099 income loans.
Buying a rental? DSCR loans.
Asset-rich, income-light? Asset depletion.
Clean books with a CPA? P&L statement loans.
Just missed conventional? Alternative AUS.
The application starts online with a soft credit pull that does not affect your score. We map your income to the right program before anything touches your credit.
No SSN required. Takes about 2 minutes.
Common Myths About Non-QM Loans
Myth: Non-QM means subprime.
Reality: Non-QM is about documentation flexibility, not credit quality. Many Non-QM borrowers have 720+ credit and strong assets — they just earn in a way Fannie Mae cannot use directly. Every loan is fully underwritten to ability-to-repay rules.
Myth: No tax returns means no documentation.
Reality: You still provide bank statements, 1099s, a P&L, or asset statements, plus credit and ownership documents. It is full documentation through a different lens.
Myth: Investors need W-2 income to get a mortgage.
Reality: DSCR loans qualify entirely on the property’s rent. Your personal income, employment, and tax returns never enter the picture.
Non-QM Loan FAQ
What is a Non-QM loan?
A Non-QM loan is a home loan that verifies income with alternative documents instead of tax returns and W-2s. The lender still confirms you can repay — using bank statements, 1099s, a profit and loss statement, your assets, or a rental property’s income. It is a documentation category, not a credit-quality category.
What credit score do I need for a Non-QM loan?
It depends on the program. Bank statement loans start as low as 620 on Non-Prime tiers, with 660 unlocking the higher debt-to-income limit. DSCR investor loans go as low as 620 on the Plus tier (660 on Core, 700 for first-time investors). Higher scores unlock better pricing and higher loan-to-value.
Can I get a mortgage without tax returns?
Yes. Several Non-QM programs skip tax returns entirely. Bank statement loans use 12 or 24 months of deposits. 1099 loans use your 1099 income. Asset depletion uses your liquid assets. DSCR loans use the rental property’s income. The right option depends on how you earn.
Is a Non-QM loan the same as subprime?
No. Non-QM refers to how income is documented, not to weak credit. Today’s Non-QM loans are fully underwritten and held to ability-to-repay standards. Many borrowers have excellent credit and substantial assets — they simply earn income in a way a W-2 cannot show.
What types of Non-QM loans are there?
Bank statement loans, DSCR investor loans, 1099 income loans, P&L statement loans, asset depletion loans, ITIN loans, foreign national loans, and Alternative AUS. Each is built for a different income type or property situation.
How much can I borrow with a Non-QM loan?
Up to $3.5M on bank statement and asset depletion programs, and up to $2.5M on DSCR. By comparison, the 2026 conforming limit is $832,750 in most counties — Non-QM lets qualified borrowers go well above it.
Can I use rental income to qualify for a Non-QM loan?
Yes. DSCR loans use the subject property’s rental income as the only qualification metric — no personal income needed. If the rent covers the mortgage payment, the property qualifies. LLC vesting and short-term rental income are allowed on the Plus tier.
Are Non-QM loans available in my state?
We are lending in 49 states. New York is excluded. Some states carry program-specific rules — for example, Texas Section 50(a)(6) has its own cash-out requirements. We confirm your state’s specifics at intake.
Explore Non-QM Loan Programs
Each program has its own page with full qualification details and program-specific FAQs:
Bank Statement Loans |
DSCR Loans |
1099 Income Loans |
P&L Statement Loans |
Asset Depletion Loans |
Jumbo Loans
Written by J.D. Peck — Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group, Inc. NMLS #314883. 25+ years originating, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Program details verified against the PRMG Non-QM Income Qualifying and Non-QM DSCR product profiles. Guidelines subject to change. Lending in 49 states. New York excluded. Last updated: June 7, 2026.
Qualify on What You Actually Earn
Soft credit pull. Real qualifying income from your deposits, 1099s, assets, or rental cash flow — not what a tax return is forced to show.
No SSN required. Takes about 2 minutes.