Question 1

What is a Non-QM loan?

Accepted Answer

A Non-Qualified Mortgage (Non-QM) is any loan that doesn't meet the Consumer Financial Protection Bureau's 'Qualified Mortgage' standards — primarily around income documentation. Non-QM loans are not inherently risky; they simply use alternative methods to verify a borrower's ability to repay.

Question 2

How does bank statement qualification work?

Accepted Answer

Instead of tax returns, we average your deposits over 12 or 24 months of personal or business bank statements to calculate your qualifying income. Business owners who write off significant expenses often show much higher income this way than on their tax returns.

Question 3

What is asset depletion?

Accepted Answer

Asset depletion (or asset dissipation) allows borrowers with significant liquid assets to qualify using those assets as 'income.' We divide your eligible assets by the loan term to calculate a monthly income figure. This is ideal for retirees or high-net-worth borrowers with limited documented income.

Question 4

Can I qualify after a bankruptcy or foreclosure?

Accepted Answer

Yes. Many Non-QM programs allow borrowers to qualify as soon as 1–2 years after a bankruptcy discharge or foreclosure, compared to 4–7 years for conventional loans. The waiting period and terms depend on the specific program.

Question 5

Are Non-QM rates higher than conventional rates?

Accepted Answer

Typically yes — Non-QM rates are 0.5–2% higher than conventional rates to compensate for the additional flexibility. However, for self-employed borrowers who can't qualify conventionally at all, Non-QM is often the only path to homeownership.

Non-QM / Bank Statement Loans

Key Features & Benefits

Best For

May Not Be Ideal If

Your Path to Closing

Income Analysis

Program Selection

Underwriting

Close on Your Terms

Frequently Asked Questions

Also Consider

Don't Let Tax Write-Offs Cost You a Home

Non-QM and Bank Statement Loans