At SWBC Mortgage, our mission is clear: to help people find the happiest way home. We’ve been living and lending in communities like yours since 1988, and we know that every path to homeownership is unique. For buyers with nontraditional income, such as self-employment, real estate investors, or those without a Social Security number, our non-QM programs may provide the flexibility and accessibility needed to qualify for a home loan.
What Is a Non-QM Loan?
A non-QM (non-qualified) loan does not follow the mortgage qualification standards set by the Consumer Financial Protection Bureau (CFPB), including debt-to-income (DTI) limits, documentation requirements, and specific product guidelines. Unlike standard mortgages, non-QM loans allow lenders to offer more flexible underwriting criteria to buyers who might otherwise be excluded.
Why Consider a Non-QM Loan?
These home loan options allow homebuyers who may not qualify for a traditional mortgage, such as self-employed individuals or freelancers, real estate investors, high-net-worth buyers leveraging their assets rather than income, foreign nationals, and more. Here are a few of SWBC Mortgage’s non-QM mortgage programs:
- 1099 Income Loans – Use 1099 forms instead of W-2s to verify income rather than traditional tax returns.
- Asset Depletion Loans – Qualify based on available assets, such as retirement accounts, investment portfolios, or savings.
- Bank Statement Programs – Allow self-employed buyers to secure a mortgage using 12 to 24 months of bank statements to support their income stream.
- Debt-Service-Coverage Ratio (DSCR) Loans – Help real estate investors qualify based on a property’s expected rental income.
- Foreign National Programs – Tailored to meet the unique needs of foreign nationals seeking a home loan.
- Individual Tax Identification Number (ITIN) Loans – Designed for homebuyers who have an ITIN instead of a Social Security number.
- Profit & Loss (P&L) Loans – Allow small business owners to use P&L statements to document business income.
- Reduced Documentation (Low Doc) Mortgages – Require less documentation than traditional mortgages to verify repayment ability.
- Taking Title in the Name of an LLC – Structures ownership so that the title to the property is held by a limited liability company (LLC) rather than an individual.
Is a Non-QM Loan Right for You?
Non-QM mortgages can be worth a second look if you’re:
- Self-employed or a freelancer
- An investor relying on asset or rental income
- High-net-worth but not paycheck-dependent
- Recently recovered from a credit event
- A foreign/non-SSN borrower without U.S. credit history
These loan programs can be a path forward for those who do not meet traditional loan guidelines. To explore the best fit for your financial needs, reach out to an SWBC Mortgage loan officer. They’ll walk you through your options, clarify documentation needs, and help you weigh any trade-offs so you can move toward homeownership with confidence.