Non-QM Loans for Self-Employed Borrowers & Business Owners Qualify on what you actually earn, not what your tax returns show.
Bank statements. P&L. 1099s. Assets. Tell us how you're paid, and a licensed Non-QM specialist will match you to the documentation path that shows your real income.
Takes about a minute · No obligation
How are you paid?
Pick the one that sounds most like you. We'll show you the loan built for that kind of income.
Bank statement loan
Qualify using your average monthly deposits from personal or business bank statements instead of tax returns.
Non-QM loan programs, by how you document income
Each path proves the same thing, that you can repay the loan, with documents that fit how you actually earn.
Bank statement mortgage loans
For business owners and self-employed borrowers whose write-offs lower taxable income
Your income is calculated from average deposits over typically 12 or 24 months of personal or business bank statements. Your tax returns aren't used, so deductions don't count against you.
You'll typically provide
- 12 or 24 months of personal or business bank statements
- Proof the business exists (business license, CPA letter, or similar)
- Asset statements for down payment and reserves
P&L only mortgage loans
For business owners with a CPA or licensed tax preparer
Qualify using a profit and loss statement instead of tax returns. The P&L is usually prepared or verified by a CPA or licensed tax preparer, which keeps the file simple when your deposits are uneven.
You'll typically provide
- Profit & loss statement prepared or verified by a CPA or tax preparer
- CPA letter confirming the business, if your program requires it
- Asset statements for down payment and reserves
1099 mortgage loans for self-employed contractors
For independent contractors, consultants, and gig earners
Qualify on the income shown on your 1099 forms instead of full tax returns, so business expenses on Schedule C don't shrink your qualifying income.
You'll typically provide
- Recent 1099 forms
- Year-to-date proof of continuing income, such as bank statements
- Asset statements for down payment and reserves
Asset depletion loans
For retirees, investors, and borrowers with significant liquid assets
Qualify based on your liquid assets instead of monthly income. Eligible balances are converted into a monthly qualifying income, with no employment required.
You'll typically provide
- Recent statements for bank, brokerage, and retirement accounts
- Proof that funds are seasoned and accessible
Non-QM vs. conventional vs. DSCR
The key difference is how your ability to repay is proven.
| Non-QM | Conventional | DSCR | |
|---|---|---|---|
| How income qualifies | Bank statements, P&L, 1099s, or assets | Tax returns, W-2s, pay stubs | Property's rental income |
| Tax returns required | Not on most paths | Yes | No |
| Property types | Primary, second home, investment | Primary, second home, investment | Investment only |
| Best for | Self-employed, 1099, asset-rich borrowers | W-2 earners with simple tax returns | Rental property investors |
| Learn more | You're here | Conventional loans | DSCR loans |
Self-employed mortgage options for real-world income
If a lender turned you down because your tax returns show less than you make, Non-QM was built for you.
Small business owners
Strong revenue, but write-offs leave taxable income too low for a conventional loan.
Contractors & gig earners
Consultants, drivers, creatives, and freelancers paid on 1099s.
Real estate-heavy filers
Schedule E depreciation and losses make your returns understate your cash flow.
Recently self-employed
Made the jump from W-2 to your own business? Ask how much history your deposits need to show.
Asset-rich borrowers
Retirees and investors with significant savings but little monthly income.
Higher loan amounts
Loan sizes that go beyond conventional limits, paired with flexible documentation.
From "how are you paid?" to closing
- Tell us how you earnBusiness, 1099, or assets, plus the home, price, and down payment.
- Match the documentationA licensed loan expert picks the path that shows the most qualifying income.
- Review your numbersWe calculate qualifying income and give you a clear answer on rate and terms.
- Submit and closeYou get a short, specific document list. No guessing, no surprise requests.
One Non-QM specialist. Your income. A straight answer.
You work directly with a licensed loan expert who knows self-employed files, from the first call through closing.
Non-QM, or a better loan elsewhere?
Non-QM solves a documentation problem. If you don't have one, there may be a lower-cost option.
Non-QM fits if…
Your tax returns understate your real income, you were declined over debt-to-income, or your income comes from deposits, contracts, or assets instead of a paycheck.
See if I qualify →Buying a rental property?
A DSCR loan qualifies on the property's rent, with no personal income documentation at all.
See DSCR loans →W-2 with simple tax returns?
If your returns support the loan, a conventional or FHA/VA loan will usually cost less.
See conventional loans →Non-QM loan questions
What is a Non-QM loan?
A Non-QM (non-qualified mortgage) loan is a home loan that doesn't follow standard agency documentation rules. Instead of tax returns and W-2s, it can qualify your income with bank statements, a profit and loss statement, 1099s, or your assets. It's built for self-employed borrowers and others whose tax returns don't show their real income.
Are Non-QM loans safe and regulated?
Yes. Non-QM loans are regulated mortgages. Lenders still have to verify that you can reasonably repay the loan under federal ability-to-repay rules. The difference is which documents are used to prove it.
How many months of bank statements do I need?
Bank statement loans typically use 12 or 24 months of personal or business bank statements. Your average qualifying deposits are used to calculate income. A loan expert can tell you which window works best for your deposits.
Do I need a CPA letter for a Non-QM loan?
It depends on the program. The P&L path usually requires a profit and loss statement prepared or verified by a CPA or licensed tax preparer, and some programs also ask for a CPA letter confirming your business. Bank statement and 1099 paths may need less.
Can I qualify with 1099 income?
Yes. 1099 mortgage programs let independent contractors and gig earners qualify using 1099 forms instead of full tax returns.
Are Non-QM rates higher than conventional rates?
Usually somewhat higher, because the documentation is non-traditional. Your rate depends on credit, down payment, documentation type, and property. Many borrowers use Non-QM to buy now and refinance later if their tax returns support a conventional loan.
Can I use a Non-QM loan for an investment property?
Yes. Non-QM loans can be used for primary homes, second homes, and investment properties. If you're buying a rental and want to qualify on the property's rent instead of your income, a DSCR loan may be a better fit.
Is a Non-QM loan right for me if I'm a W-2 employee?
Usually not. If your W-2 income and tax returns support the loan, a conventional or FHA/VA loan will typically cost less. Non-QM is for income that standard documentation doesn't capture.
Declined because of your tax returns?
Tell us how you're paid and what you want to buy or refinance. A licensed Non-QM specialist will tell you which path fits, with no obligation.
All loans are subject to credit approval, underwriting guidelines, and property eligibility. Documentation requirements vary by program. Not all applicants will qualify. Non-QM rates and terms may be higher than conventional financing. Not a commitment to lend. American Prime Rate LLC, NMLS# 2421810.