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A non-QM loan is a mortgage that doesn't meet the federal Qualified Mortgage rules or Fannie Mae, Freddie Mac, FHA or VA guidelines, so it can use other ways to verify your ability to repay: bank statements, assets, a profit-and-loss statement, 1099s or rental income. Lenders must still verify that you can repay. Non-QM rates are usually higher than agency loans, but they open doors for self-employed buyers, investors, retirees, foreign nationals and buyers with recent credit events. iQRATE Mortgages (NMLS 1862492) shops non-QM loans across many lenders in Nevada, California, Texas and Florida.
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Written by David Ghazaryan, Mortgage Broker (NMLS 1486726), iQRATE Mortgages (NMLS 1862492). Licensed in Nevada, California, Texas and Florida. Updated October 2026.
Rates depend on credit score, down payment, documentation type, property type, loan size and, for investment loans, any prepayment penalty. Full-doc agency loans are usually cheaper, so we check whether you qualify for one first. When non-QM is the right fit, we compare several lenders because pricing differs widely.
These vary by lender and are not a quote:
Non-QM lenders must still make a reasonable, good-faith determination that you can repay under federal ability-to-repay rules. Non-QM doesn't mean no documentation; it means different documentation.
Many borrowers use non-QM to buy now, then refinance into a conventional loan once they have two years of tax returns that show the income or their credit event is far enough in the past. Ask whether your loan has a prepayment penalty before you plan that refinance.
Bank statement: a self-employed contractor shows average business deposits of $30,000 a month over 24 months. With a 50% expense factor, the lender counts $15,000 a month in qualifying income, far more than the $5,500 a month the tax returns show after write-offs.
Asset depletion: a retiree has $2,000,000 in eligible retirement and brokerage accounts. A lender that divides eligible assets over 360 months would count about $5,556 a month in income, on top of Social Security. Lenders differ on which assets count, what discount applies to retirement accounts and how many months they use.
Nevada's economy produces a lot of hard-to-document income: casino dealers and servers with tips, entertainers and promoters with 1099 income, real estate agents and gig workers. Bank statement loans are common in Las Vegas for exactly that reason. Nevada has no state income tax, so self-employed borrowers' federal returns are the only returns lenders see. Investors buying Las Vegas rentals often use DSCR loans; note that Clark County's short-term rental rules limit nightly rentals. See Las Vegas, Henderson and Summerlin.
California's high prices push many non-QM loans into jumbo sizes. Entertainment industry workers, tech contractors and small-business owners use bank statement and P&L loans; retirees and executives use asset depletion. California loan limits up to $1,249,125 mean some non-QM borrowers still fit high-balance limits once their income is documented the agency way, so we check both. Property tax of about 1.1–1.3% and FAIR Plan insurance costs count in non-QM qualifying just as in agency loans. See Los Angeles, Beverly Hills, Irvine and San Jose.
Texas business owners, oil and gas contractors and real estate investors are frequent non-QM borrowers. ITIN loans are common in Houston, Dallas and the border cities. Texas has no state income tax and no transfer tax, but high property taxes reduce the rent coverage on DSCR loans. Texas homestead cash-out loans are capped at 80% of value under Section 50(a)(6), which applies to non-QM cash-out too. See Houston, Dallas, Austin and El Paso.
Florida draws foreign national buyers, especially in Miami and Orlando, and vacation-rental investors in Kissimmee and the Gulf Coast. Condo buyers often turn to non-QM when a building is non-warrantable after Florida's milestone inspection and reserve rules. Florida's doc stamps and intangible tax apply to non-QM loans too. See Miami, Orlando, Kissimmee and Fort Lauderdale.
A casino host earns a base salary plus tips and bonuses but has only one year at the current employer after a career change, so agency lenders won't count the tips yet. A 12-month bank statement program averages deposits of $11,500 a month. Since these are personal deposits from W-2 and tip income, many lenders don't apply a business expense factor. The buyer qualifies for a $450,000 Henderson home with 10% down.
Illustrative only, not a quote or offer. Rates, terms and eligibility vary by lender and change without notice.
A buyer from Colombia with no US credit history buys a $650,000 Brickell condo as a second home. A foreign national program asks for 30% down ($195,000), a passport, international credit references and reserves held in a US account. If the building is non-warrantable, the lender reviews the condo budget and milestone inspection results before approval.
Illustrative only, not a quote or offer. Rates, terms and eligibility vary by lender and change without notice.
A business owner had a Chapter 7 discharge 14 months ago after a failed restaurant but now earns strong income from a new business. FHA and conventional loans would require waiting at least 2 to 4 years. A non-QM program with a shorter waiting period, 15–20% down and 24 months of bank statements may allow a purchase now, with a plan to refinance into a conventional loan once eligible.
Illustrative only, not a quote or offer. Rates, terms and eligibility vary by lender and change without notice.
Non-QM loans are long-term mortgages, usually 30 years, with full consumer protections on primary homes. Hard money loans are short-term, asset-based loans for flips or bridge financing, with much higher rates. If you plan to hold a property, non-QM is usually the better fit.
Most non-QM loans close in 21–30 days. Bank statement analysis and asset verification take a little longer than a standard file, so we collect statements up front.
If you're self-employed, start with our bank statement loan guide. If you're buying a rental, start with our DSCR loan guide. If you have significant assets but limited income, asset depletion is often the best fit.
Closing costs are lender and third-party fees; cash to close also includes your down payment and prepaids such as insurance and tax escrow, minus any credits. Every fee is itemized on your Loan Estimate. See closing costs by state.
Terms for each are on its own page; see all iQRATE guarantees.
A mortgage outside the Qualified Mortgage and agency rules that verifies income in other ways, such as bank statements or assets.
They are regulated, and lenders must still verify your ability to repay. Rates are usually higher than agency loans.
Often 10–25%, depending on the program and your credit.
Yes. Some programs have much shorter waiting periods than FHA or conventional loans.
Yes, once you qualify for a conventional loan; check for a prepayment penalty first.
Yes, through foreign national programs, often with 25–30% down.
Often on investment properties, usually not on primary homes.
Yes. It qualifies on rental income instead of personal income.
Yes. It replaces tax returns with 12 or 24 months of bank statements.
Yes, often with 25–30% down and no US credit history.
Some programs allow much shorter waits than agency loans; it depends on the lender and down payment.
No. Non-QM loans are long-term mortgages; hard money loans are short-term, higher-rate loans.
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iQRATE Mortgages · NMLS 1862492 · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · Licensed in Nevada, California, Texas and Florida. David Ghazaryan, Mortgage Broker, NMLS 1486726. Verify us on NMLS Consumer Access. Equal Housing Opportunity. This is not a commitment to lend; programs, rates and terms vary by lender and change without notice.
More: DSCR loans · Bank statement loans · Our guarantees · Closing costs by state
