Home Loan Programs Non-QM Loans
Alt-Doc Programs

Non-QM Loans —
your income, your rules.

Traditional mortgage guidelines were built around W-2 employees. If you're self-employed, a business owner, or a 1099 earner, Non-QM lets you qualify on what you actually earn — not what your tax return says after write-offs.

0–24
Months Bank Statements
10%
Minimum Down Payment
620+
Minimum Credit Score
$3M+
Loan Amounts Available
Great if you…
Non-QM is likely your best fit
  • Are self-employed and use write-offs that reduce your taxable income
  • Earn 1099 income as a contractor, consultant, or gig worker
  • Own a business with strong cash flow not reflected in net income
  • Have been turned down by conventional lenders due to income documentation
  • Are a high-net-worth individual who prefers to qualify on assets
  • Need a loan above conforming limits with alternative documentation
Consider alternatives if…
Other programs may serve you better
  • You have 2 years of tax returns showing sufficient income — conventional rates will be lower
  • You are buying a rental property — DSCR qualification may be simpler
  • You are a veteran — VA benefits should be used before Non-QM
  • You need a short-term bridge or fix-and-flip — Private Money is faster
Program Details

Everything you need to
know about Non-QM.

Bank Statement Programs

The most popular Non-QM product. Use 12 or 24 months of business or personal bank statements in place of tax returns. We average your deposits and apply a reasonable expense factor to determine qualifying income.

  • 12-month or 24-month bank statement options
  • Business or personal accounts accepted
  • Expense factor: typically 50% (business) or 10% (personal)
  • Loan amounts up to $3M or higher available
1099 & P&L Programs

For contractors and 1099 earners, we can use 1099 statements or a CPA-prepared profit and loss statement to document income — without requiring full tax returns. This is a game-changer for the gig economy.

  • 12 or 24 months of 1099 statements
  • CPA-signed P&L for business income verification
  • No tax returns required in most scenarios
  • W-2 and 1099 income can be blended
Asset Depletion / Utilization

High-net-worth borrowers with significant liquid assets but modest reported income can qualify using asset depletion — a calculation that treats your assets as a stream of qualifying income over time.

  • Retirement, brokerage, and savings accounts count
  • Assets divided over remaining loan term for income calculation
  • No employment or income verification required
  • Strong option for retirees and high-wealth borrowers
Credit & Down Payment

Non-QM credit requirements are more flexible than conventional loans. Borrowers who have had a recent credit event — foreclosure, bankruptcy, or missed payments — may qualify with shorter waiting periods than conventional allows.

  • 620+ credit score for most programs (some allow 580+)
  • Foreclosure / short sale: 1–2 year waiting period (vs. 7 years conventional)
  • Bankruptcy: 1–2 years out of discharge
  • Down payment: 10%–20% depending on loan amount and credit
How It Works

Your Non-QM loan
with Smart Mortgage.

01
Income Review Call

We start with a 15-minute call to understand your income structure. Are you using bank statements, 1099s, or assets? We select the right program and set accurate expectations before you gather a single document.

02
Document Collection

We provide a clear checklist specific to your program — typically 12–24 months of bank statements, a business license or CPA letter, and asset statements. No unnecessary paperwork requests.

03
Underwriting & Appraisal

Non-QM files are manually underwritten. Our experienced team knows these guidelines inside and out and can often secure approval in 5–7 business days from complete documentation.

04
Close & Move Forward

Closing timelines on Non-QM are comparable to conventional when documentation is clean. Most of our bank statement borrowers close in 14–21 days from application to funding.

FAQ

Common Non-QM
questions answered.

A Non-QM (Non-Qualified Mortgage) loan does not meet the CFPB's standard Qualified Mortgage definition. This allows lenders to use alternative income documentation — like bank statements, 1099s, or asset depletion — instead of traditional W-2s and tax returns. Non-QM loans are ideal for self-employed borrowers whose tax returns understate their actual income.
Most bank statement programs require 12 or 24 months of business or personal bank statements. Lenders calculate your qualifying income by averaging the deposits over the statement period, sometimes applying an expense factor. 24-month programs typically offer better rates than 12-month programs.
Non-QM rates are generally 0.5%–1.5% higher than conventional rates. For self-employed borrowers whose tax returns show significantly lower income than their actual cash flow, Non-QM often unlocks a loan that would otherwise be impossible — making the rate difference worth it.
Yes. Non-QM programs are available for primary residences, second homes, and investment properties. For investment properties, DSCR loans (which qualify on rental income) are often a better fit than bank statement programs — we can show you both options side by side.
Client Story

Real results for
real borrowers.

★★★★★
5.0 ★ · Consistent 5-star reviews on Google

Self-employed? You deserve a mortgage too.

Bank statements, 1099s, assets — we'll find the right way to document your income and get you approved.