NON-QM Loans
Non-QM (Non-Qualified Mortgage) loans are designed for borrowers who don’t fit traditional lending guidelines but still deserve access to flexible financing solutions. These programs are especially useful for self-employed individuals, real estate investors, or anyone with unique income documentation. Instead of relying solely on tax returns, Non-QM loans use alternative methods such as bank statements, profit & loss statements, DSCR (rental income), VOE-only verification, or construction-based financing.
By focusing on real-world financial scenarios, Non-QM programs make it possible to qualify for a loan based on your true ability to repay — not just what appears on paper.
Profit & Loss (P&L) Loans
Profit & Loss (P&L) loans are designed for self-employed borrowers whose tax returns don’t reflect their true earning power. Instead of traditional income documentation, these programs allow a CPA- or EA-prepared P&L statement to be used for qualification, giving business owners the flexibility to secure financing that better represents their cash flow.
| Program | Max LTV | Min FICO | Notes |
|---|---|---|---|
| P&L Only (CPA/EA Prepared) | 80% | 660 | Business or personal P&L prepared by CPA/EA accepted. |
Benefits & Requirements
Benefits
- Qualify without tax returns
- Uses CPA- or EA-prepared P&L statements
- Streamlined process for self-employed borrowers
- Flexible terms for purchases and refinances
- Higher LTVs available compared to other alternative documentation loans
Requirements
- Business or personal P&L must be prepared by a licensed CPA or EA
- Minimum FICO: typically 660 depending on LTV
- Max LTV up to 80% (varies by property type)
- 1–4 unit residential properties allowed
- Standard credit, asset, and appraisal verification required
DSCR Loans
Debt Service Coverage Ratio (DSCR) loans are designed for real estate investors who want to qualify based on property cash flow rather than personal income. Instead of tax returns or pay stubs, approval is based on whether rental income covers the monthly housing expenses — making it a streamlined option for building or expanding an investment portfolio.
| Property Type | Max LTV | Min DSCR | Min FICO | Notes |
|---|---|---|---|---|
| 1–4 Units | 80% | 1.0 | 660 | Standard occupancy. |
| 5–8 Units | 75% | 1.0 | 660+ | DSCR ≥ 1.0 required. |
| Mixed-Use | 70–75% | 1.0 | 660+ | Case-by-case. |
| Foreign National | 70% | 1.0 | 660+ | Passport/visa required. |
Benefits & Requirements
Benefits
- Qualify using property rental income, not personal income
- Ideal for investors with multiple properties or complex finances
- No personal income documentation required
- Available for 1–4 unit properties, 5–8 unit properties, and mixed-use
- Options for foreign national borrowers
Requirements
- DSCR (rental income ÷ housing expense) must typically be ≥ 1.0
- Minimum FICO (varies by program tier, often 660+)
- Maximum LTV up to 80% (depending on property type and occupancy)
- Property types: SFR, 2–8 units, condos, mixed-use allowed
- Standard appraisal and rent schedule required
VOE Only Loans
VOE (Verification of Employment) Only loans are designed for borrowers whose income can be validated directly through their employer without requiring full tax returns or extensive documentation. Instead of traditional income verification, a written verification of employment (WVOE) is used to confirm stability and ability to repay, making this a streamlined solution for qualified wage earners.
| Program | Max LTV | Min FICO | Notes |
|---|---|---|---|
| VOE Only | 75–80% | 660 | Qualification based on Written Verification of Employment (WVOE) only; no tax returns required. |
Benefits & Requirements
Benefits
- No tax returns or pay stubs required
- Qualification based on employer-verified income
- Faster and simpler approval process
- Available for purchases, refinances, and cash-out
- Flexible solution for W-2 employees with clean employment history
Requirements
- Written Verification of Employment (WVOE) required from employer
- Minimum FICO: typically 660 depending on LTV
- Max LTV up to 75–80% (varies by property type)
- Primary residences, second homes, and some investment properties eligible
- Standard credit, asset, and appraisal verification required
Construction Loans
Construction loans are designed for borrowers who need financing to build a new home or undertake major renovations. Unlike traditional mortgages, these programs provide short-term funding during the construction phase and may convert to permanent financing once the project is complete. Construction loans are ideal for homeowners, builders, and investors who want flexible solutions tailored to their project needs.
| Loan Purpose | Max LTV | Min FICO | Notes |
|---|---|---|---|
| New Construction | Up to 90% ARV | 660+ | Financing for ground-up builds; interest-only during construction; option to convert to permanent loan. |
| Major Renovation | Up to 90% ARV | 660+ | Covers substantial remodels or additions; licensed contractor required. |
Benefits & Requirements
Benefits
- Financing for new builds and major renovations
- Flexible draw schedules to match project milestones
- Interest-only payments during construction phase
- Option to convert into permanent financing after completion
- Available for primary residences, second homes, and investment properties
Requirements
- Licensed builder or general contractor required
- Detailed construction plans and budget must be submitted
- Minimum FICO: typically 660+ depending on LTV
- Max LTV up to 75–80% of completed value (varies by property type)
- Appraisal must include “as-completed” property value
Programs, rates, and terms are subject to change without notice. All loans are subject to credit approval, verification, and property appraisal. Not all programs are available in all states or for all loan amounts. Restrictions may apply.