- Non-QM loans use alternative documentation instead of tax returns.
- Scores below 620 may be considered on select programs with lower leverage.
- Up to 90% LTV on select primary-home bank statement purchases with 740+ credit and loans up to $1,000,000.
- Loan amounts up to $3,000,000 on many programs, with larger loans on select programs.
Ways to document income
- Bank statements: 12 or 24 months of personal or business deposits.
- 1099 income: for contractors and gig workers.
- Profit & loss only: a CPA- or tax-preparer-prepared P&L on select programs.
- Asset-based: qualify from savings, investments or retirement balances.
- Written verification of employment (WVOE): employer-completed form instead of tax returns.
- DSCR: for rentals, qualify on the property's rent. See DSCR loans.
Non-QM parameters
| What to expect | |
|---|---|
| Credit score | Below 620 considered on select programs; best leverage around 700–740+ |
| Max LTV, primary purchase | Up to 90% (bank statement, 740+, up to $1M); 85% P&L-only with 720+; 80% asset/WVOE |
| Max LTV, cash-out | Up to 75% on select programs |
| Investment property | Up to 85% purchase on select programs with 720+ and loans up to $1M |
| Loan size | Up to $3,000,000 on many programs; minimums commonly $100K–$150K |
| Debt-to-income | Up to 50% on select programs |
| Reserves | Typically 3 to 12 months of payments |
| Terms | Fixed and interest-only options on select programs |
| After credit events | About 12 to 48 months depending on the program |
Varies by lender and state. Subject to credit approval and program guidelines.
Hard money and bridge loans
For investors who need speed, like a fix-and-flip or a purchase before a sale closes, short-term asset-based loans focus on the property and the plan more than your income. They cost more and are meant to be paid off or refinanced quickly, so the exit plan matters as much as the loan.
The honest trade-offs
The best non-QM loan is often a bridge: buy or refinance now, clean up the tax returns, and move to conventional later when it makes sense.
- Higher rates and costs than conventional.
- Larger down payments and reserves are common.
- Prepayment penalties on some investment programs; rules vary by state.
Frequently asked questions
How many months of bank statements do I need?
Usually 12 or 24 months, personal or business, depending on the program.
Can I get a non-QM loan after a bankruptcy?
Often yes, after a waiting period of roughly 12 to 48 months depending on the program, usually with a lower max LTV.
Related loan programs
Learn more
Rates and program availability vary by state, property and lender. This is not a rate quote, a credit decision, an offer or a commitment to lend. Program restrictions apply. Larz Martin NMLS #2026245 · CA DRE #02241936 · Lumin Lending, Inc. NMLS #2716106 · CA DRE #02291443. Equal Housing Opportunity.
