What is a Non-Qualified Mortgage (Non-QM)?

A Non-QM loan does not meet the Consumer Financial Protection Bureau Qualified Mortgage standards. These loans offer flexible underwriting for borrowers who cannot qualify for traditional mortgages due to self-employment, non-traditional income, or unique financial situations. They are legitimate lending products, not subprime loans.

Who benefits from Non-QM loans?

Non-QM loans serve self-employed individuals, business owners, real estate investors, those with recent credit events, foreign nationals, and anyone with non-traditional income documentation. They provide solutions for qualified borrowers whose income does not fit standard W-2 verification requirements.

What is a bank statement loan?

Bank statement loans use 12-24 months of business or personal bank statements to verify income instead of tax returns. They are ideal for self-employed borrowers who write off significant business expenses. Lenders typically use 50-100% of deposits to calculate qualifying income.

Debt Service Coverage Ratio (DSCR) loans qualify based on the investment property rental income rather than personal income. If the rent covers the mortgage payment (typically 1.0+ DSCR), you can qualify. These loans are popular with real estate investors building rental portfolios.

Are Non-QM loan rates higher?

Non-QM loans typically have rates 0.5-2% higher than conventional loans due to increased lender risk with alternative documentation. However, rates vary by loan type, credit score, down payment, and property type. For borrowers who cannot qualify conventionally, Non-QM loans provide essential financing options.

What down payment is required for Non-QM loans?

Non-QM down payments typically range from 10-25% depending on the loan type and borrower profile. Bank statement loans often require 10-15% down. DSCR loans usually need 15-25% down. Asset depletion loans may accept 10-20%. Larger down payments often result in better rates.

Can I get a Non-QM loan with bad credit?

Some Non-QM programs accept lower credit scores than conventional loans, with minimums around 620-660 for most products. Recent credit events like bankruptcy or foreclosure may be acceptable after 1-2 years versus 4-7 years for conventional loans. Compensating factors like larger down payments help.

How do I apply for a Non-QM loan?

Work with a mortgage broker experienced in Non-QM lending who can match you with the right program. Gather documentation based on the loan type: bank statements for bank statement loans, rental agreements for DSCR loans, or asset statements for asset depletion loans. The application process is similar to conventional loans.

Non-Qualified Mortgages

Non-Traditional Lending Solutions Tailored for Unique Financial Situations

What are Non-Qualified Mortgages?

Non-Qualified Mortgages (Non-QM Loans) offer a valuable solution for individuals who don't meet traditional loan requirements. Unlike Qualified Mortgages (QM), Non-QM loans are designed for financially stable borrowers with unique income structures.

Types of these borrowers include self-employed individuals, business owners, investors, or those with non-traditional income sources.

Flexible Solutions

Tailored for unique situations

Business Owners

Perfect for entrepreneurs

Investment Ready

Built for investors

Find Your Perfect Program

Search through our Non-QM loan programs to find the right solution for your unique financial situation

SRK CAPITAL offers a variety of Non-QM Loans.

Asset Depletion Loans

An asset depletion loans enables borrowers to get a mortgage by leveraging significant liquid assets instead of traditional income.

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Bank Statement Loans

These loans allow self-employed borrowers, or those with non-traditional income, to qualify based on their bank statements instead of W-2s or pay stubs.

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Bridge Loans

This type of loans allows home owners the ability to buy a new home before selling their current one. They can use their existing home's equity as collateral with this short-term financing tool.

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Get Started Today

Ready to take the next step on your home lending journey? At SRK CAPITAL, we're here to make home lending easy. Whether you're looking to buy, refinance, or learn more about one of our loan programs, we are here for you.

We have a dedicated team that understands no client is the same. That is why we offer a wide variety of loans so you get the loan that best suit your needs.

Let us help you unlock exclusive benefits, competitive rates, and better loan programs that make home ownership accessible and affordable. Contact SRK CAPITAL today to get started—a better lending experience is just a conversation away!

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Non-Qualified Mortgages

What are Non-Qualified Mortgages?

Flexible Solutions

Business Owners

Investment Ready

Find Your Perfect Program

SRK CAPITAL offers a variety of Non-QM Loans.

Asset Depletion Loans

Bank Statement Loans

Bridge Loans

Get Started Today

Expert Rate Analysis

Fast Processing

Premium Service

Non-Qualified Mortgage (Non-QM) Guide