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Loan

Non-QM loans

Bank statement, DSCR, and other loans for income that does not fit a standard file.

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What it is

How it works

Self-employed borrowers and investors sometimes need a loan that looks at bank statements, or at a rental's own income (DSCR), instead of tax returns. We say early whether that path fits, and what papers it asks for.

Who it fits

  • Self-employed borrowers whose tax returns understate what they earn.
  • Investors buying rentals.
  • Borrowers with large savings but uneven income.
  • Borrowers with a recent credit event that rules out a standard loan for now.

Key facts

Good to know

  • QM means Qualified Mortgage, a set of federal rules for standard loans. Non-QM loans fall outside them.
  • The lender still has to check, in good faith, that you can repay a loan on your home.
  • Common kinds: bank statement loans, DSCR loans for rentals, asset-based loans, and loans for a recent credit event.
  • Rules differ a lot from one lender to the next.

Calculator

Estimate a payment

You choose every number. The weekly average is a starting point, not a quote.

Payment

Move any number. The math runs on this device and nothing is sent.

$

$70,000 down

U.S. average the week of Nov 5. Not a quote.

Term
$
$
$
$

Some loans need it. Type the amount your lender gives you.

Monthly payment

$1,896.82/ month

Sample: $350,000 home, 20% down ($70,000), 360 monthly payments of $1,896.82 on a 30-year fixed loan at 7.18% interest (7.18% APR, assuming no points or fees). Taxes and insurance are extra, so your real payment will be higher. Not a quote.

Principal and interest
$1,896.82

Add tax and insurance for the full payment.

Loan amount
$280,000
Down payment
$70,000

Over 30 years

  • Principal$280,000
  • Interest$402,855

First payment: $221.49 principal and $1,675.33 interest.

This is an estimate, not a loan offer. A lender has to confirm it.

This is not a commitment to lend or lock a rate.

Rates change. Call us. (480) 297-8855

Costs and limits

What it costs

The kinds of costs, not amounts. Your Loan Estimate lists the numbers.

Costs to expect

  • Non-QM loans usually cost more than standard loans, in rate, fees, or both.
  • Many ask for more of your own money in the home than a standard loan.
  • Business-purpose loans, such as DSCR, can carry a fee for paying off early.

Limits

  • Lenders often ask for months of payments in reserves.
  • Each lender sets its own credit, income, and property rules.
  • Some non-QM loans are only for investment property.

Compared

How it compares

Next to Conventional loans in Arizona.

  • A conventional loan follows Fannie Mae and Freddie Mac rules. A non-QM loan follows the lender's own.
  • A conventional loan usually costs less. A non-QM loan can say yes when the standard file does not fit.
  • Many borrowers use non-QM for now and refinance to conventional once their file fits.

Read about Conventional loans in Arizona

The process

From first call to closing

  1. Talk

    A short call about your goals, your timeline, and the kind of home you want. Ask us anything.

  2. Apply

    You fill out the application online. It asks for your Social Security number and documents, and we give you a clear list of what to send.

  3. Compare

    We compare lenders for your loan and show you the options side by side, with the tradeoffs explained.

  4. Close

    We stay with you through appraisal, underwriting, and signing, and keep you posted at each step.

Questions

Questions about this loan

Not here? Call (480) 297-8855.

Is non-QM the same as subprime?

No. Non-QM means the loan sits outside the Qualified Mortgage rules, often because of how income is documented. The lender still checks that you can repay.

Which non-QM loan fits me?

It depends on your income and the property. Self-employed borrowers often look at bank statement loans, and investors at DSCR loans. We say early which, if any, fits.

Can I refinance out of a non-QM loan later?

Often, yes, once your income or credit fits a standard loan. Ask about any fee for paying off early before you sign.

Reviews

From a client

Read all reviews

Chance is someone you can trust from the begging to the end of the transaction. I'm grateful to have found him to help me with the purchase of my home. Chance answered all of my questions and concerns, in detail. Couldn't have done it with out him. Buying a home can be challenging in number of things from the seller, realtor, title, etc. Chance made it easy for me, to understand, trust and believe that I was making the right decision . Thank you Chance, from my daughter and I. Sincerely, Edith Peralta, MBA/CCC

Edith Peralta

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