A non-QM (non-qualified mortgage) is any home loan outside Fannie Mae/Freddie Mac and CFPB qualified mortgage rules. Non-QM loans serve self-employed borrowers, real estate investors, foreign nationals, and others who can’t document income conventionally but are otherwise creditworthy.
What is a non-QM loan?
Non-QM means the loan doesn’t fit CFPB Qualified Mortgage rules around documented income, 43% DTI caps, and standard underwriting. Non-QM lenders use alternative income documentation, higher DTI allowances, or asset-based qualification. See our Non-QM Loans California hub.
What types of non-QM loans are available?
Bank statement (12–24 months deposits), DSCR (rental income covers payment — no personal income needed), asset depletion (divide assets over loan term), P&L (CPA-prepared profit and loss), ITIN (no SSN required), recent credit event (as soon as 1 day post-bankruptcy on some programs).
Rates and down payments
Rates run 0.5–2% above conventional. Down payments: 10% (bank statement strong credit), 20–25% (DSCR), 20–30% (asset depletion, ITIN). No PMI on any non-QM program.
Who is non-QM right for?
Self-employed with high cash flow but low taxable income. Real estate investors who want to qualify on rent not salary. Foreign nationals without US credit. Borrowers recovered from a credit event but not yet 4–7 years out. Anyone the conventional system says no to despite being financially sound.
Can I refinance out of non-QM later?
Absolutely — many borrowers plan this strategically. Use non-QM to buy now, then refinance into conventional once you have 2 years of tax returns or sufficient equity. Smart move in a rising market.
📞 Call: (800) 239-1103 | Cell: (310) 849-9124
Michael G. DiVita, Broker of Record | CA DRE #01372066 | NMLS #241655
DiVita Home Finance, Inc. | CA DRE #01818285 | NMLS #323700
