🔍 What Is a Non-QM Loan?

A Non-Qualified Mortgage, or Non-QM loan, is a flexible mortgage option designed for borrowers who may not meet the traditional income documentation standards set by conventional lenders. These loans are especially helpful for self-employed individuals, entrepreneurs, real estate investors, and retirees with non-traditional income sources.

Unlike conventional mortgages, Non-QM loans use alternative methods to verify income—such as bank statements, asset depletion, or rental income—making them an excellent option for financially capable borrowers who simply don’t fit into the conventional lending box.

Who Is a Non-QM Loan For?

• Self-employed business owners
• Independent contractors or gig economy workers
• Real estate investors with rental income
• Retirees with significant assets but limited monthly income
• Borrowers with recent credit events (e.g., bankruptcy or foreclosure)

Why Choose a Non-QM Loan?

Non-QM loans offer the flexibility that traditional lenders can’t. They are ideal for creditworthy borrowers who have complex or inconsistent income profiles and need customized underwriting solutions. These programs allow you to qualify based on your real financial picture rather than rigid formulas.

Pros of Non-QM Loans

• Flexible income verification (e.g., 12-24 months of bank statements)
• Higher loan amounts available
• Can qualify even with credit challenges
• No tax return or W-2 requirements
• Ideal for unique properties or investment scenarios

Cons of Non-QM Loans

• Higher interest rates than conventional loans
• Larger down payments may be required
• Fewer lenders offer them, limiting shopping options
• Not eligible for government backing (e.g., FHA, VA)

Is a Non-QM Loan Right for You?

If you’re financially stable but don’t fit into the standard mortgage mold, a Non-QM loan could be your best alternative to get approved and achieve your real estate goals. At Chess Capital Partners, we’ll walk you through every step and structure a loan that fits your life, not the other way around.

Ready to explore your options? Contact us today for a personalized consultation or start your application online.