🏡 Common Types of Non-QM Loans

📁 Bank Statement Loans

  • Use 12–24 months of bank statements to verify income
  • Ideal for self-employed borrowers or freelancers
  • No need for tax returns or W-2s

📊 DSCR Loans (Debt Service Coverage Ratio)

  • Used for investment properties
  • Qualification based on rental income vs. loan payment
  • No personal income verification required

💰 Asset-Based Loans

  • Approval based on liquid assets and net worth
  • Great for high-net-worth individuals with low monthly income

🌍 Foreign National Loans

  • Designed for non-U.S. residents buying property in the U.S.
  • Alternative credit and income documentation accepted

🧾 Profit & Loss Statement Loans

  • Use business P&L statements to verify income
  • Suitable for small business owners and entrepreneurs

📉 Interest-Only Loans

  • Pay only interest for a set period (e.g., first 5–10 years)
  • Lower initial payments, but principal remains unchanged

🛠️ Fix-and-Flip Loans

  • Short-term financing for buying and renovating properties
  • Common among real estate investors

🏗️ Construction Loans

  • Fund the building of new homes or real estate projects
  • Typically short-term and disbursed in stages

🔁 Asset Depletion Loans

  • Convert assets into qualifying income
  • Often used by retirees or investors with substantial savings

✅ Who Benefits from Non-QM Loans?

  • Self-employed professionals
  • Real estate investors
  • Retirees with significant assets
  • Borrowers with recent credit events
  • Foreign nationals
  • Gig workers and freelancers