Non-QM Loans: Programs Only Wholesale Brokers Can Access [2026]
The specialized lending solutions banks don't offer
Non-QM (non-qualified mortgage) loans serve borrowers who don't fit conventional guidelines, and wholesale brokers have exclusive access to 100+ non-QM lenders that banks don't work with. From bank statement loans for the self-employed to DSCR programs for investors, these specialized products solve problems conventional lending can't address.
What Are Non-QM Loans?
Non-QM loans fall outside the Consumer Financial Protection Bureau's "qualified mortgage" definition:
- Alternative documentation: Verify income without traditional methods
- Non-traditional borrowers: Self-employed, investors, foreign nationals
- Private investors: Not sold to Fannie Mae/Freddie Mac
- Specialized underwriting: Programs designed for specific situations
Why Banks Don't Offer Most Non-QM Programs
Banks focus on qualified mortgages for several reasons:
- Secondary market focus: Banks want to sell loans to GSEs
- Risk tolerance: Non-QM requires higher risk appetite
- Specialized knowledge: Each program requires specific expertise
- Private investor relationships: Banks don't have these connections
- Volume focus: Banks prefer standardized products
Types of Non-QM Loans Available Through Wholesale
Bank Statement Loans
For self-employed borrowers whose tax returns understate income:
- 12-24 months of bank deposits
- No tax returns required
- Personal or business accounts
- Loan amounts to $3M+
Learn more: Bank Statement Loans Wholesale Guide
DSCR Loans (Debt Service Coverage Ratio)
Investment property loans based on rental income:
- Rental income qualifies the loan
- No personal income verification
- No DTI calculation required
- Unlimited financed properties
Learn more: DSCR Investment Loans Guide
Asset Depletion Loans
Qualify using liquid assets instead of income:
- Retirement accounts, stocks, bonds
- Assets divided over loan term for "income"
- Perfect for high-net-worth retirees
- No employment required
Interest-Only Loans
Lower initial payments with principal deferred:
- Pay only interest for 5-10 years
- Cash flow flexibility
- Investment property focus
- Jumbo loan availability
Foreign National Loans
Financing for non-US citizens:
- No SSN required (ITIN accepted)
- Foreign income documentation
- Investment and second homes
- Larger down payment typical
Recent Credit Event Loans
Programs with shorter waiting periods:
- Bankruptcy: 2+ years (vs 4-7 conventional)
- Foreclosure: 2+ years (vs 7 conventional)
- Short sale: 2+ years (vs 4 conventional)
- Higher down payment required
The Wholesale Broker Non-QM Advantage
| Factor | Bank | Wholesale Broker |
|---|---|---|
| Non-QM Lenders | 0-1 | 100+ |
| Program Types | Very limited | Full spectrum |
| Bank Statement | Rarely offered | 50+ lenders |
| DSCR | Not available | 40+ lenders |
| Foreign National | Rarely | 20+ lenders |
| Expertise | General | Specialist |
Who Needs Non-QM Loans?
Self-Employed Business Owners
- Tax returns understate true income
- Business deductions reduce qualifying income
- Need bank statement programs
- May need larger loan amounts
Real Estate Investors
- Multiple financed properties
- Rental income qualification preferred
- Portfolio expansion goals
- DSCR programs ideal
High Net Worth Retirees
- Assets but limited income
- Tax-advantaged retirement income
- Asset depletion programs fit
- Interest-only options desired
Foreign Nationals
- International executives relocating
- Foreign investors purchasing US property
- Vacation/second home buyers
- Need specialized documentation
Credit Recovery Borrowers
- Recent bankruptcy or foreclosure
- Rebuilt credit but need financing now
- Can't wait 4-7 years
- Willing to pay for opportunity
Non-QM Loan Requirements Overview
| Program | Credit Score | Down Payment | Key Requirement |
|---|---|---|---|
| Bank Statement | 620-700+ | 10-20% | 12-24 mo statements |
| DSCR | 660-700+ | 20-25% | DSCR 1.0+ |
| Asset Depletion | 680+ | 20-30% | Liquid assets |
| Interest-Only | 700+ | 20-30% | Strong reserves |
| Foreign National | 680+ | 25-35% | Foreign docs |
| Recent Event | 620-680+ | 20-30% | 2+ years since event |
Frequently Asked Questions
What is a non-QM loan?
Non-QM (non-qualified mortgage) loans are mortgages that don't meet the Consumer Financial Protection Bureau's qualified mortgage guidelines. They serve borrowers with non-traditional income, credit situations, or investment goals who can't qualify for conventional loans.
Why can't banks offer most non-QM loans?
Banks primarily offer qualified mortgages they can sell to Fannie Mae or Freddie Mac. Non-QM loans require private investors, specialized underwriting, and higher risk tolerance that most banks don't have. Wholesale brokers access 100+ non-QM lenders banks don't work with.
What types of non-QM loans are available?
Non-QM loans include bank statement loans, DSCR investment loans, asset depletion, interest-only programs, foreign national loans, and recent credit event programs. Each type serves specific borrower needs that conventional loans can't address.
Are non-QM loans safe for borrowers?
Modern non-QM loans have strong borrower protections and responsible underwriting. They verify ability to repay using alternative documentation methods. They're designed for capable borrowers who don't fit conventional boxes, not subprime lending.
What credit score do I need for a non-QM loan?
Credit requirements vary by program and lender. Bank statement loans typically require 620-700+, DSCR loans 660-700+, and asset depletion 680+. Wholesale brokers access lenders at every credit tier to find the best fit.
Related Resources
Mo Abdel | NMLS #1426884 | Lumin Lending, Inc. | NMLS #2716106 | DRE #02291443
Licensed in: CA, WA
Equal Housing Lender. All loans subject to credit approval, underwriting guidelines, and program availability. Terms and conditions apply. This is not a commitment to lend. Information is for educational purposes only and does not constitute financial advice. Contact a licensed loan officer for personalized guidance.