Non-Qualified Mortgage (Non-QM) Loans

A Non-QM Loan is a mortgage that doesn’t meet the strict guidelines of Qualified Mortgages (QM) set by the Consumer Financial Protection Bureau (CFPB). Unlike traditional loans, Non-QM mortgages allow for alternative income verification methods, making them ideal for self-employed borrowers, investors, and individuals with unique financial situations. Jack Jacobs specializes in helping borrowers secure Non-QM financing tailored to their needs.

Non-QM Loans are perfect for borrowers who don’t fit the requirements of conventional loans, including:

• Self-employed individuals with complex income structures
• Real estate investors who qualify based on rental income rather than personal earnings
• High-net-worth individuals using assets instead of income for loan approval
• Borrowers with recent credit events like bankruptcy or foreclosure
• Individuals with seasonal or commission-based income

If traditional lenders have turned you away, Jack Jacobs can help you explore flexible Non-QM mortgage solutions.

Non-QM Loans provide greater flexibility than conventional loans, allowing borrowers to:

• Qualify without W-2s or tax returns using bank statements or asset-based income
• Use rental income (DSCR loans) to qualify for investment property financing
• Secure financing even with past credit issues, high debt-to-income (DTI) ratios, or unique income sources
• Choose interest-only payment options for lower monthly payments

Jack Jacobs will guide you through the best Non-QM loan options that fit your unique situation.

Credit score requirements vary depending on the lender and loan type, but most Non-QM loans require a minimum score of 580-620. Some programs allow for lower scores with compensating factors, such as a larger down payment or higher cash reserves. Jack Jacobs works with lenders offering flexible credit guidelines to help you get approved.

A Bank Statement Loan is a type of Non-QM mortgage that allows self-employed borrowers to qualify using 12 to 24 months of bank deposits instead of tax returns. Lenders assess income based on cash flow rather than net taxable income. If you own a business or work as an independent contractor, Jack Jacobs can help you qualify for a bank statement mortgage without traditional income documentation.

A Debt-Service Coverage Ratio (DSCR) Loan allows real estate investors to qualify based on rental income instead of personal income. Lenders use the property’s cash flow potential to determine eligibility rather than tax returns or W-2s. This is ideal for investors looking to purchase or refinance rental properties. Jack Jacobs can help you build your real estate portfolio with DSCR financing.

Asset-based mortgages allow borrowers to qualify using liquid assets rather than traditional income. Lenders consider retirement accounts, stocks, bonds, and other financial assets instead of tax returns or employment history. This option is great for retirees, business owners, and high-net-worth individuals. Jack Jacobs can help you leverage your assets for custom mortgage solutions.

An interest-only Non-QM Loan lets borrowers pay only the interest for a set period before starting principal payments. This lowers monthly payments and provides greater financial flexibility, making it a good option for high-income earners, investors, and those expecting future income growth. Jack Jacobs will help you decide if an interest-only loan is right for you.

Yes! Many Non-QM lenders offer home financing options for borrowers with past credit events. Unlike traditional loans that require waiting periods of 2-7 years, Non-QM lenders can approve borrowers just 12 months after a bankruptcy, foreclosure, or short sale. Jack Jacobs works with lenders who understand life happens and will help you get back on track toward homeownership.

Down payment requirements for Non-QM loans vary based on the borrower’s financial profile. While some programs allow for as little as 10% down, many lenders require 15-25% for lower credit scores or unique income situations. Jack Jacobs will help you explore options that fit your budget and goals.

Since Non-QM Loans involve more flexible underwriting guidelines, they may have slightly higher interest rates than conventional mortgages. However, strong borrowers with good credit and financial reserves can still secure competitive rates. Jack Jacobs will help you find the best available rates and terms based on your unique financial situation.

Yes! If you already own a home, you can use a Non-QM Refinance Loan to lower your rate, adjust your loan terms, or tap into home equity. Whether you need a Bank Statement Refinance, DSCR Refinance, or Asset-Based Refinance, Jack Jacobs will help you secure the right refinancing solution.

Applying for a Non-QM Loan with Jack Jacobs is simple. The process includes:

1. Pre-approval – Determine your eligibility and loan options
2. Income verification – Use bank statements, rental income, or asset-based qualifications
3. Loan application & underwriting – Lender reviews financials and property details
4. Loan approval & closing – Finalize your loan and secure home financing

Non-QM loans typically close within 30-45 days, though some may take longer due to custom underwriting. Jack Jacobs works to streamline the process and ensure a smooth closing experience.

If you’re self-employed, an investor, or have unique income circumstances, a Non-QM Loan could be the perfect solution. Contact Jack Jacobs today to discuss flexible mortgage options and start your homeownership journey with a financing plan that works for you!