Non-QM loans
Non-QM loans: when standard rules don't fit your situation
A non-QM loan is a home loan that falls outside one or more federal "qualified mortgage" rules, often because income is documented in a different way. It isn't a no-doc loan, and it isn't always the right choice. We'll tell you when it is.
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- Other ways to document income
- Income and assets verified, under federal ability-to-repay rules
- Honest comparison with conventional options
See if non-QM fits
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What "non-QM" means
A qualified mortgage (QM) follows a standard set of federal rules. A non-QM loan falls outside one or more of them, for example in how income is documented. Lenders still have to make a good-faith determination that you can repay the loan. The CFPB explains the ability-to-repay rule (opens in a new tab).
Non-QM loans often have different costs and terms than conventional loans. Sometimes a conventional loan is still the better choice, and we'll tell you when that's true.
Who non-QM loans can fit
- Self-employed borrowers whose write-offs lower the income on their tax returns
- People whose income changes from month to month
- Borrowers with significant assets but irregular income
- Borrowers whose credit event is too recent for standard programs
- Larger loans that fall outside agency rules
Common non-QM paths
Bank statement
Income figured from business or personal bank statements instead of tax returns.
Learn more1099 income
For independent contractors, using 1099s directly.
Learn moreAsset-based
Qualifying based on eligible savings and investments.
Learn moreAfter a credit event
Options when a past credit event is too recent for standard programs.
Learn moreNon-QM for your home, DSCR for rentals
The non-QM loans on this page are for homes you'll live in. For rental property, a DSCR loan is a business-purpose loan qualified mainly on the property's rental income.
How it works
Four clear steps. You decide at every one.
Tell us your goal
Book a call, text us, or fill out the short form. A few minutes is enough to start.
We look at your options
We review your situation and compare loan options that fit it.
You get it in writing
When you apply, you get an official Loan Estimate with the real costs and terms.
We guide you to closing
We keep you, the title company and your agent, if you have one, updated through closing.
Common questions
What does non-QM mean?
Non-QM stands for non-qualified mortgage. It's a home loan that falls outside one or more of the federal "qualified mortgage" rules, often because income is documented in a different way.
Is a non-QM loan a "no-doc" loan?
No. You still document your income and assets. It's just done differently, for example with bank statements instead of tax returns. Lenders still have to make a good-faith determination that you can repay the loan.
Who uses non-QM loans?
Self-employed borrowers, people whose income varies, borrowers with significant assets, and people whose credit event is too recent for standard programs.
Do non-QM loans cost more?
They often do, compared with conventional loans. We'll show you the full costs, and we'll tell you if a conventional or government program would serve you better.
Can I refinance out of a non-QM loan later?
Often, yes. Some borrowers use non-QM for now and refinance into a conventional loan once their documents fit standard rules. Whether that works depends on the market and your situation at the time.
How is non-QM different from a DSCR loan?
A DSCR loan is a business-purpose loan for rental property that's qualified mainly on the property's rental income. Those are in our investor loans section. The non-QM home loans on this page are for homes you'll live in.
Are non-QM loans risky?
They come with trade-offs. Lenders still have to verify that you can repay, under the federal ability-to-repay rule, but non-QM loans often cost more and their terms can differ from conventional loans. Understand the costs and terms before you commit, and ask us anything.
Keep exploring
Self-employed
Your mortgage options, in plain English.
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Learn more: Turned down before?Markets we serve
Local pages with housing data and the loans that fit each market.
Talk it through with our team
Book a short call, or text us your question. We'll explain your options in plain language.
Call or text (615) 949-4780 · Answered 24/7 for booking
Booked calls are with a member of the Iron Hill team. Home loans are handled by a licensed loan officer.