Non-QM loan
Also called: non qualified mortgage, bank statement loan
A mortgage outside the Qualified Mortgage rules, using alternative documentation such as bank statements or asset depletion.
Non-QM covers files that do not fit standard agency documentation: self-employed borrowers whose returns understate income, investors, and asset-rich borrowers with modest taxable income. Bank statement, asset depletion, and DSCR programs all sit here.
Non-QM is not subprime. It is different documentation, generally at a higher rate, with real underwriting behind it.
Related terms
- DSCR loanAn investment-property loan qualified on the property’s rental income rather than the borrower’s personal income.
- UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.
- Self-employed incomeIncome from self-employment, generally qualified on net figures after business deductions rather than gross receipts.
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