A conventional mortgage doesn’t fit every borrower. You may own a business, earn income through contracts, hold substantial financial assets, or purchase rental properties that support themselves through rent. We specialize in Non-QM lending and help Arizona borrowers explore financing beyond traditional agency guidelines.
As a mortgage broker, we work with multiple lenders. That gives us more options to evaluate your scenario, compare qualification methods, and shop available rates and closing costs.
What Is a Non-QM Loan?
Non-QM stands for Non-Qualified Mortgage. It describes financing that falls outside Qualified Mortgage criteria, not a borrower’s credit quality. These loans may use alternative income documentation, different loan features, or underwriting approaches suited to particular circumstances. Borrowers must still meet the selected lender’s requirements.
Multiple Ways to Document Your Income
Your financial picture may be broader than the income reflected on a paycheck or tax return.
- Personal or business bank statements.
- Professionally prepared profit-and-loss statements.
- 1099 earnings.
- Eligible savings, investments, or retirement assets.
- Rental income from an investment property.
- Other lender-approved income documentation.
Bank Statement Loans for Self-Employed Borrowers
Business deductions can reduce taxable income without fully explaining the cash flow available to support a mortgage. A bank statement loan allows eligible self-employed borrowers to qualify using 12 or 24 months of personal or business bank statements, depending on the program. We review eligible deposits, remove transfers and other non-income activity, and apply applicable business expense adjustments.
Profit-and-Loss Income Options
A profit-and-loss statement summarizes business revenue and expenses over a defined period. Eligible P&L programs may use this information to establish qualifying income. Requirements vary, including the reporting period, preparer qualifications, and whether you need supporting bank statements. We can help determine which P&L approach fits your business records and financing request.
DSCR Investor Loans
For an eligible rental property, a Debt Service Coverage Ratio (DSCR) loan focuses on the property’s qualifying rental income rather than personal employment income. We compare eligible rent with the required housing payment.
- Rental property purchases.
- Investment property refinancing.
- Eligible cash-out transactions.
- Investors expanding an existing portfolio.
DSCR loans are intended for eligible investment properties, rather than a home you plan to occupy.
Asset Depletion and Asset-Based Qualification
A borrower may have substantial assets without a large monthly paycheck. Asset depletion programs calculate qualifying income from eligible financial assets. Depending on the program, these may include savings, marketable investments, and retirement accounts. Other asset-based programs use separate qualification methods. Required balances, deductions, accessibility, and how different accounts are treated vary.
1099 and Alternative Income Programs
Independent contractors and commission earners often receive income differently from salaried employees. A 1099 program may let eligible borrowers qualify using documented 1099 earnings. The lender reviews income history, continuity, and applicable expense adjustments.
Foreign National Programs
Eligible foreign nationals may have options for financing Arizona real estate without a traditional U.S. credit or income profile. Requirements depend on the lender and the intended use of the property. The review may include identification, residency circumstances, foreign income or assets, credit references, and the source of closing funds.
Jumbo Loans and Unique Properties
Higher loan amounts and unusual properties can require a broader lender search.
- Non-warrantable condominiums.
- Rural properties and homes on acreage.
- Properties with accessory dwelling units.
- Other residential properties outside standard agency eligibility.
Options After a Credit Event
A prior bankruptcy, foreclosure, or other credit event doesn’t always close every mortgage option. Some Non-QM programs have different seasoning requirements from traditional agency loans. Eligibility depends on the event, time elapsed, re-established credit, equity or down payment, and the complete application.
Purchase, Refinance, and Cash-Out Options
Non-QM financing may support a primary residence purchase, second home, or investment property, depending on the program. Refinance options may allow eligible borrowers to change their loan structure or access equity. We compare the proposed financing with your existing mortgage, including payment, closing costs, and total borrowing cost.
The Mortgage Broker Advantage
One lender’s decision doesn’t reflect every lender’s available programs. We can compare multiple Non-QM financing sources. We review documentation requirements, property eligibility, loan structure, rates, and closing costs to identify suitable options. We help you understand your options and the reasons behind our recommendations.
Contact us to explore Non-QM purchase and refinance or Equity loan options tailored to your circumstances.