Home loans for self-employed borrowers and investors
If your tax returns don't show what you really earn, or you're buying a rental, these loans let a lender verify your ability to repay with other documents: bank statements, a profit and loss statement, 1099s, savings or a property's rental income. The industry calls them Non-QM (non-qualified mortgage) loans. Each program below is built around a different kind of documentation.
| Program | Qualifies on | Built for | Occupancy |
|---|---|---|---|
| Rental property loans (DSCR) | Property rent divided by its monthly payment | Real estate investors buying or refinancing rentals | Investment property only, not owner-occupied |
| Bank statement loans | Average deposits from 12 or 24 months of statements | Self-employed owners and freelancers with write-offs | Primary home, second home, or investment property |
| Profit and loss statement loans | Net income on a professionally prepared P&L | Established business owners with a CPA or tax preparer | Primary home, second home, or investment property |
| 1099 contractor loans | Gross income reported on Forms 1099 | Independent contractors, freelancers, and commissioned workers | Primary home, second home, or investment property |
| Loans using your savings | Eligible liquid assets divided over a set number of months | Retirees, early retirees, and high-net-worth borrowers | Primary home, second home, or investment property |
| Jumbo loans with flexible income | Bank statements, P&L, assets, rent, or full documentation, by program | Higher-balance buyers whose income does not fit agency or standard jumbo rules | Primary residence, second home, or investment, by program |
| Interest-only loans | Full documentation, bank statements, assets, or property rent, depending on the program | Borrowers who want lower early payments and have a plan for the reset | Primary residence, second home, or investment, by program |
| Loans for foreign buyers | Rental income or documented foreign income, plus verified assets | Non-U.S. residents buying U.S. property | Investment property or second home |
| ITIN home loans | Income shown on ITIN tax returns, pay records, or bank statements | U.S. taxpayers who file with an ITIN instead of an SSN | Primary residence, plus second home or investment in some programs |
| Loans after bankruptcy or foreclosure | Current income and assets, plus your credit history since the event | Borrowers rebuilding after bankruptcy, foreclosure, short sale, or deed-in-lieu | Primary residence, second home, or investment, by program |
New to these loans?
Start with what a Non-QM loan is, then compare Non-QM and conventional loans and read about costs and tradeoffs. If you're self-employed, the self-employed mortgage guide walks through your options in order.
Common questions
Are Non-QM loans legal and regulated?
Yes. Non-QM loans are fully legal. Lenders making consumer-purpose Non-QM loans must still follow the federal ability-to-repay rule in Regulation Z, which requires a reasonable, good-faith determination that you can repay, along with state licensing and disclosure laws.
Which of these loans is right for me?
It depends on how your income is documented. Business owners often start with bank statement or P&L programs, contractors with 1099 programs, investors with DSCR loans, and borrowers with large savings but modest income with asset depletion. Mortza's AI guide can narrow this down from a short description.
Can I refinance out of a Non-QM loan later?
Often, yes. Some borrowers use a Non-QM loan now and refinance into a conventional loan once their tax returns or credit fit standard guidelines. Check whether your loan has a prepayment penalty and when it ends before planning a refinance.