Non-QM Loans Explained

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What is a Non-QM Loan?

Non-QM Loans (also called Non-Qualified Mortgage Loans or Bank Statement Loans) are home loans best suited for small business owners, self-employed individuals, investors, and foreign national borrowers.

Lenders use bank statements or other documents to verify and evaluate a potential borrower's income instead of using W2s or tax returns as they would for a traditional mortgage.


  • No W2s, tax returns, or pay stubs required
  • Higher debt-to-income ratios are usually accepted
  • Often have above average loan limits
  • Can be used for both primary residences as well as second homes or investment purchases


  • May have higher interest rates than a traditional mortgage
  • Larger down payment may be required
  • Not offered by all lenders

The Loan Division Methodology

Our team rates Non-QM Lenders by taking into account a number of factors such as years in business, number of product offerings, number of states licensed, whether they offer free consultations, customer service quality, and online reviews as well as other criteria. We aim to provide information to consumers to aid them in making a decision on which lender is best suited for them.

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