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Alt Doc Loan Options

Non-QM Loans

Non-QM loans can help borrowers with nontraditional income explore mortgage options that may better fit their financial situation.

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A self employed borrower looks at non-QM mortgage options.

What Is A Non-QM Loan?

A non-QM loan is a mortgage that does not fit the standard qualified mortgage, or QM, framework. QM loans follow specific federal rules for how lenders evaluate a borrower’s ability to repay, including how income, assets, debts and loan terms are reviewed.

Non-QM loans can provide additional options for borrowers whose finances might not fit a traditional mortgage file. That can include some self-employed borrowers, real estate investors, borrowers with significant assets, borrowers with nontraditional documentation or borrowers whose income may be difficult to document through standard pay stubs, W-2s or tax returns.

Non-QM does not mean no documentation, limited review or automatic approval. Lower reviews each borrower’s ability to repay, and eligibility depends on the specific loan program, property type, credit profile, down payment, assets, income documentation and other underwriting requirements.

 

All Non-QM Loans

Non-QM Loan Options

Lower offers a range of non-QM loan options for borrowers whose income, assets or financial profile may need to be reviewed differently than they would be for a traditional mortgage. Available options vary by borrower, property, loan program and applicable underwriting requirements.

For Real Estate Investors

DSCR Loans

A DSCR (or investor cash flow) loan may be an option for eligible real estate investors. Instead of focusing only on the borrower’s personal income, this type of loan may consider rental income or cash flow from the investment property as part of the qualification review.

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For Borrowers with fluctuating income

Bank Statement Loans

A bank statement loan may be an option for eligible self-employed borrowers or borrowers with fluctuating income. Depending on the program, Lower may review personal or business bank statements to help evaluate income.

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For 1099 earners

1099 Loans

A 1099 loan may be an option for eligible independent contractors, commission-based workers or self-employed borrowers who receive 1099 income. Lower may use 1099 forms and other required documentation to help evaluate income.

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For eligible self-employed borrowers

Profit And Loss Statement Loans

A profit and loss statement loan may be an option for eligible self-employed borrowers. Depending on the program, Lower may review a profit and loss statement prepared by a qualified tax or accounting professional, along with any other required documentation.

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For borrowers with substantial assets

Asset Qualifier Loans

An asset qualifier loan may be an option for eligible borrowers with substantial liquid assets. Lower may review eligible assets to determine whether they can help support the borrower’s loan qualification, down payment, closing costs, reserves and other program requirements.

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For eligible non-U.S. borrowers

Foreign National Loans

A foreign national loan may be an option for eligible borrowers who live and work outside the U.S. and want to finance an investment property in the United States. Program requirements vary and may include documentation related to identity, assets, credit history, income, property use and other underwriting factors.

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For borrowers who may not fit traditional guidelines

Full Doc Loans

A full documentation (full doc) non-QM loan may be an option for eligible borrowers who can document income but do not fit standard conventional or jumbo loan requirements. Lower may be able to review these borrowers under applicable non-QM guidelines.

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For borrowers with employer-verified income

WVOE Loans

A written verification of employment loan may be an option for eligible wage-earning borrowers. Lower may use a completed written verification of employment, along with any other required documentation, to help evaluate income and the borrower’s ability to repay.

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How to Apply for a Non-QM Loan with Lower

Applying for a non-QM with Lower is takes just 3 minutes. You'll provide some basic information about yourself and your situation, and then you'll be connected to an expert loan officer who can help you with your next steps.

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Frequently Asked Questions

Learn More About Non-QM Loans

What does non-QM mean?

Non-QM stands for non-qualified mortgage. A non-QM loan is a mortgage that does not fit the standard qualified mortgage, or QM, framework. These loans may be useful for borrowers whose income, assets or financial profile need to be reviewed differently than they would be for a traditional mortgage.

Who may benefit from a non-QM loan?

A non-QM loan may be an option for self-employed borrowers, real estate investors, independent contractors, borrowers with substantial assets, borrowers with nontraditional income or eligible borrowers who do not fit standard conventional or jumbo loan requirements. Eligibility depends on the specific loan program, property type, credit profile, down payment, documentation and other underwriting requirements.

Are non-QM loans only for self-employed borrowers?

No. Non-QM loans are often useful for self-employed borrowers, but they may also be available for real estate investors, 1099 earners, wage-earning borrowers, foreign national borrowers and borrowers with significant liquid assets. The right option depends on your financial profile and the documentation available for review.

Do non-QM loans require income documentation?

Yes. Non-QM does not mean no income documentation or no review. The type of documentation may be different from a traditional mortgage. Depending on the program, Lower may review bank statements, 1099 forms, profit and loss statements, written employment verification, rental income, eligible assets or other required documentation.

Can I get a non-QM loan if I do not qualify for a conventional loan?

Possibly. A non-QM loan may be an option if you do not fit standard conventional or jumbo loan guidelines, but approval is not guaranteed. Lower reviews each borrower’s ability to repay, along with the loan program, property type, credit profile, down payment, assets, income documentation and other underwriting requirements.

Work with a Lower Advisor to get personalized loan options

1

Get Started

Take 3 minutes to complete our online application, and we’ll connect you with the best financing option for your needs.

2

Customize Your Options

We’ll schedule a quick call with one of our expert loan advisors to help find the loan solution that’s right for you.

3

Access Your Financing

Your dedicated loan officer will guide you every step of the way, helping you complete the loan process quickly and confidently from home.

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