Maximize Your Down Payment
Putting down 25% or more reduces the risk and directly results in a lower interest rate.
Non-Qualified Mortgage (Non-QM): Flexible Financing for Unique Borrowers
Access the specialized financing you need with a Non-Qualified Mortgage, designed for borrowers whose situations don't fit standard bank rules.
What is a Non-Qualified Mortgage?
A Non-Qualified Mortgage (Non-QM Mortgage) is a type of home loan that does not meet the strict underwriting guidelines set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. This makes them a great solution for borrowers who may be self-employed, rely on non-traditional income sources, or need financing for unique properties.
These loans use alternative ways to show your ability to repay, not just tax returns or W-2s.
A non-qualifying mortgage offers financing options when a conventional loan typically says no.
A Non-Qualified Mortgage is for people with strong credit and assets without traditional documentation.
Benefits of Non-Qualified Mortgage Financing
Choosing a Non-Qualified Mortgage opens doors to homeownership and investment that are typically closed by rigid conventional rules. The benefits focus on documentation flexibility, financial creativity, and wider access to capital.
Flexible Income Verification
Use bank statements, asset depletion, or DSCR instead of tax returns to prove your income.
Serve Self-Employed Borrowers
Perfect for entrepreneurs, small business owners, and freelancers who often "write off" expenses.
Finance Unique Properties
Get funding for properties traditional lenders avoid, like condos, rental portfolios, or mixed-use buildings.
Faster Loan Processing
Rize Mortgage can handle the underwriting, often making approvals faster.
High Loan Limits
Non-QM loans often allow amounts above conforming limits, like jumbo loans, giving you more buying power.
Types of Non-Qualified Mortgages
The range of Non-Qualified Mortgage products is designed to address almost every scenario where standard documentation falls short. These diverse options make the non-QM mortgage market more flexible.
Bank Statement Loans :
Ideal for self-employed borrowers. Qualification is based on 12 or 24 months of bank deposits.
DSCR (Debt Service Coverage Ratio) Loans :
For rental properties, approval depends on the property’s projected rent covering the mortgage.
Asset Depletion Loans :
Designed for high-net-worth borrowers by converting liquid assets into qualifying income.
Investor Cash Flow Loans :
A form of DSCR lending tailored to seasoned real estate investors expanding their portfolios.
ITIN Loans :
Specialized mortgage for borrowers using an Individual Taxpayer Identification Number (ITIN).
Non-Qualified Mortgage Requirements
While Non-Qualified Mortgage loans are flexible on income documentation, they are generally strict in other areas. To qualify, borrowers must demonstrate high financial health to mitigate the lender's increased risk.
Strong Credit Score
We usually require a high FICO score, often 680 or higher, with the best rates going to those above 740.
Significant Down Payment
Expect to put down at least 10–20% since lower documentation means a bigger equity requirement.
Substantial Cash Reserves
Borrowers must show significant cash reserves, often 6 to 12 months of the proposed mortgage payment.
Low Loan-to-Value (LTV)
The lower your loan is compared to the property’s value, the better the terms and rates you’ll likely get.
Verifiable Alternative Documentation
Whatever method is used (Bank Statements, DSCR, etc.), the documentation must be verifiable.
Low Default Risk
We want to see stability in housing history and employment to ensure the non-qualifying mortgage is secure.
How to Get a Non-Qualified Mortgage with Rize Mortgage
Rize Mortgage specializes in navigating the complex landscape of Non-Qualified Mortgage lenders, ensuring you are matched with the loan program that best leverages your unique financial strengths. We make the non-QM process clear and efficient.
Define Your Financial Profile :
Consult with a Rize mortgage expert to identify the optimal income verification method.
Pre-Qualification Review :
We review your credit profile and recommend alternative documentation to maximize your loan eligibility.
Secure Competitive Terms :
We help you lock in the best available non-QM interest rate and begin collecting required documents.
Specialized Underwriting :
Our dedicated non-QM team carefully reviews your alternative documentation in detail.
Closing and Funding :
Once all requirements are met, finalize loan paperwork and secure flexible mortgage financing.
Tips to Secure the Best Non-Qualified Mortgage Terms
Since the Non-Qualified Mortgage involves higher risk for the lender, maximizing your financial health outside of income verification is crucial to securing the best rates.
1
Boost Your Credit Score
Aim for a FICO score above 740. Credit is a critical pricing factor when income documentation is flexible.
2
Increase Cash Reserves
The more liquid cash reserves you show, the more secure your application appears to Rize Mortgage loan officers.
3
Maintain Clean Financial Records
Keep your bank statements and documents organized, with business and personal funds clearly separated.
4
Reduce Personal Debt
Pay down credit cards to show a stronger financial picture, even if you’re using non-traditional income.
5
FAQ (Frequently Asked Questions)
Who is eligible for a Non-Qualified Mortgage?
Non-QM loans are designed for borrowers who don’t fit traditional lending guidelines. You may be eligible if you have non-standard income documentation (like bank statements instead of W-2s), high debt-to-income ratios, credit events in the past, or simply need flexible underwriting. Lenders mainly look at your ability to repay, even if your paperwork looks different from the “usual” borrower.
Can self-employed borrowers get a non-QM mortgage?
Yes — in fact, self-employed borrowers are one of the biggest groups who use non-QM loans. Instead of tax returns, lenders often accept 12–24 months of bank statements, profit-and-loss statements, or business revenue summaries. If your taxable income looks low, but your cash flow is strong, a non-QM loan can be a great fit.
Can I buy an investment property with a non-QM loan?
Non-QM loans are commonly used for investment properties. Some programs even use DSCR (Debt Service Coverage Ratio) to qualify you based on the property’s rental income rather than your personal income. This makes the process faster and much more investor friendly.
Can I refinance a non-QM loan?
Yes, you can refinance a non-QM mortgage, whether you want cash-out, a lower payment, or simply need a more flexible approval process. Homeowners often refinance into a non-QM loan when traditional guidelines don’t work for them anymore, especially after credit changes or self-employment income adjustments.
How much down payment is required for a non-QM mortgage?
Down payment requirements vary depending on your credit profile, income documentation, and loan type. In general, non-QM loans typically require 10%–20% down, though some programs may ask for more jumbo amounts, investment properties, or lower credit scores. The benefit is that the qualifications are more flexible compared to traditional mortgages.
Ready to Secure Flexible Financing?
A Non-Qualified Mortgage is the modern solution for today's dynamic borrower—the entrepreneur, the investor, or the high-net-worth individual. Don't let old-school rules limit your opportunities.
