Non-QM Loans Provide Self-Employed Borrowers a Chance to Qualify for a Mortgage Loan

Jan 19, 2024

There are those individuals who don’t have the conventional income that a W2 wage earner gets. There are self-employed borrowers, gig workers, independent contractors, and other similar income-type employees. Trying to get a loan conventionally would probably be very difficult but using a non-QM mortgage program increases the chance of qualifying for a mortgage. Below is a quick snapshot of the type of programs and details about some of the non-QM mortgage programs that we offer.

  • Maximum loan amount: $3 million
  • Maximum debt-to-income ratio (DTI): 45%
  • Eligible properties: Primary residence and second homes (borrowers may own multiple second homes)
  • Documentation requirements: Full documentation (2 full years of income verification) or alternative documentation options such as 12 or 24 months of bank statements or 1 or 2 years of 1099s
  • Housing history requirement: No late payments in the past 12 months for first-time homebuyers (0x30x12) or in the past 24 months for repeat homebuyers (0x30x24)
  • Credit events seasoning: Minimum of 4 years since any credit events (e.g., bankruptcy, foreclosure)
  • Maximum cash-out amount: $1 million
  • Rate/term maximum cash back: The lesser of $5,000 or 2% of the loan amount
  • Loans over $2 million: Require 2 full appraisals

Please contact us for more information about the many non-QM programs that we offer including a no income check program.