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.
- ✓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
- →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
Everything you need to
know about Non-QM.
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
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
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
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
Your Non-QM loan
with Smart Mortgage.
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.
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.
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.
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.
Common Non-QM
questions answered.
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.