What it is
Non-QM means 'non-qualified mortgage' — loans that sit outside the standard Fannie/Freddie documentation box. They're fully legal, fully regulated loans; they simply measure your ability to pay differently.
How it works
Instead of W-2s and tax returns, Non-QM programs qualify you on bank statements, rental income, 1099s, or assets. Rates run somewhat higher than conventional — that's the trade for flexible documentation.
Who it fits
Business owners who write everything off, investors with big portfolios and small taxable income, freelancers, retirees with assets but modest income on paper, and foreign nationals.
The family of programs
DSCR (property's rent qualifies), bank statement loans (deposits qualify), 1099 loans, asset qualifier loans, and ITIN/foreign national programs. Each has its own article in this library.
Good to know
Non-QM isn't a consolation prize. For many self-employed borrowers it's the difference between 'declined' and 'funded in three weeks' — and you can usually refinance into conventional later if your paperwork changes.
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Talk to the DeskGeneral education, not advice for your specific situation. Every file is different — talk to a licensed professional before making decisions.