💼 What Is a Non-QM Mortgage?
Non-QM (Non-Qualified Mortgage) loans are home loans that don't meet Fannie Mae and Freddie Mac guidelines. They're designed for borrowers with non-traditional income sources like self-employment, gig work, influencer income, or heavy business write-offs.
🎯 Who Needs Non-QM Mortgages?
- ✅ Self-employed business owners with tax write-offs reducing reported income
- ✅ Social media influencers (YouTube, TikTok, Instagram) with sponsorship income
- ✅ Gig workers (Uber, DoorDash, freelancers) with 1099 income
- ✅ Real estate investors using DSCR (rental income) loans
- ✅ High-net-worth individuals using asset depletion loans
- ✅ Recent credit issues (bankruptcy, foreclosure) needing alternative approval
📊 Non-QM vs Conventional Mortgage Comparison
| Feature | Conventional | Non-QM |
|---|---|---|
| Interest Rate | 6.06% | 6.12-7.5% |
| Down Payment | 3-5% | 10-20% |
| Credit Score | 620+ | 620-680+ |
| Income Verification | W2, tax returns | Bank statements, 1099s, P&L |
| DTI Limit | 43-50% | 50-60% |
| Loan Limits | $806,500 | Up to $3M+ |
🏦 Types of Non-QM Mortgages
1. Bank Statement Loans
Best for: Self-employed business owners, influencers, gig workers
How It Works:
- Lender reviews 12-24 months of business bank statements
- Calculates average monthly deposits
- Applies expense ratio: 50% (sole proprietor) or 25% (S-Corp/LLC)
- Example: $15K monthly deposits × 50% = $7,500 income = $90K annual
Rates: 6.5-7.25% | Down Payment: 10-20%
Get Bank Statement Loan Quote →2. P&L (Profit & Loss) Loans
Best for: Business owners with CPA-prepared financials
Requirements:
- CPA-prepared P&L statement (last 2 years)
- Business bank statements (12 months)
- 2+ years self-employment in same industry
- No full tax return verification required
Rates: 6.75-7.5% | Down Payment: 15-20%
3. DSCR (Debt Service Coverage Ratio) Loans
Best for: Real estate investors with rental properties
How It Works:
- Qualification based on rental income ONLY
- DSCR = Monthly Rent ÷ Monthly PITIA
- Minimum DSCR: 1.0 (rent covers mortgage)
- NO personal income verification required
Rates: 6.12-6.62% | Down Payment: 20-25%
Complete DSCR Loan Guide →4. Asset Depletion Loans
Best for: High-net-worth individuals with significant assets
Qualification:
- Uses investment accounts, stocks, bonds, retirement funds
- Formula: Total Assets ÷ 360 months = Monthly Income
- Example: $2M assets ÷ 360 = $5,555/month qualifying income
- No employment or income verification needed
Rates: 7-8% | Down Payment: 20-30%
🎬 Non-QM Mortgages for Influencers & Content Creators
HUGE NEWS: Influencers and content creators can now qualify for mortgages using YouTube, TikTok, Instagram, and sponsorship income!
📱 Income Sources That Qualify:
- ✅ YouTube AdSense: Monthly deposits from Google
- ✅ TikTok Creator Fund: Direct deposits from TikTok
- ✅ Instagram/Facebook: Reels bonuses, brand partnerships
- ✅ Sponsorships: Brand deals, affiliate marketing
- ✅ Patreon/OnlyFans: Subscription-based income
- ✅ Course Sales: Udemy, Teachable, Kajabi
- ✅ Merchandise: Shopify, Etsy, Amazon
📋 Influencer Mortgage Requirements:
- Minimum Income: $5K-$10K monthly deposits for 12-24 months
- Credit Score: 620+ (680+ for best rates)
- Down Payment: 15-20%
- Documentation: Bank statements showing consistent deposits, platform analytics (optional)
- Self-Employment History: 2 years preferred (1 year possible with strong income)
💰 Top Lenders for Influencers:
Get Pre-Approved as Influencer/Creator →🏢 Top Non-QM Lenders for Self-Employed 2026
1. LendFriend Mortgage
BEST OVERALLSpecialist in bank statement loans, P&L loans, and DSCR. Fast closings (10-21 days). Rates 6.5-7.25%.
Best For: Business owners with heavy write-offs, influencers, gig workers
Get LendFriend Quote →2. CrossCountry Mortgage
Nationwide lender with flexible underwriting. High DTI (up to 55%) and asset-based programs.
Best For: Borrowers with moderate credit challenges, high DTI
3. New American Funding
Digital-first lender with manual underwriting. Great for TikTok/YouTube influencers.
Best For: Tech-savvy borrowers, content creators, freelancers
4. Angel Oak Mortgage Solutions
Non-QM specialist with HELOC and second-lien options. Rates 6.75-8%.
Best For: Complex scenarios, second homes, investment properties
5. Carrington Mortgage Services
Second-chance lending for self-employed with recent credit issues. Rates 7-8.5%.
Best For: Bankruptcy, foreclosure, credit challenges
🚨 Shadow Debt & Non-QM Mortgages
CRITICAL: "Shadow debt" (Buy Now Pay Later, crypto loans, unreported debt) is becoming a MAJOR issue for Non-QM borrowers in 2026.
⚠️ What Is Shadow Debt?
Shadow debt is unreported debt that doesn't show up on credit reports but affects your ability to repay a mortgage:
- 💳 Buy Now Pay Later (BNPL): Klarna, Affirm, Afterpay (only 1 reports to credit bureaus)
- 🪙 Crypto Loans: Borrowing against Bitcoin/Ethereum
- 👥 Peer-to-Peer Loans: LendingClub, Prosper
- 💰 Cash Advances: Payday loans, merchant cash advances
- 📱 App-Based Loans: Dave, Earnin, Brigit
🔍 How Lenders Detect Shadow Debt:
- ✅ Bank Statement Analysis: Recurring payments to BNPL companies
- ✅ Debt-to-Income Verification: Manual review of all monthly obligations
- ✅ Borrower Disclosure: Required to list ALL debts on application
- ✅ Asset Verification: Crypto holdings checked for loan liens
⚠️ WARNING: Hiding shadow debt is mortgage fraud and can result in loan denial or legal consequences.
💡 How to Qualify for Non-QM Mortgage (Step-by-Step)
Step 1: Organize Your Income Documentation
- 12-24 months business bank statements
- 1099 forms (if applicable)
- CPA-prepared P&L statements (if available)
- Proof of business ownership (LLC docs, business license)
Step 2: Check Your Credit Score
Target 680+ for best rates. If below 620, work on credit repair for 3-6 months before applying.
Step 3: Save for Down Payment
Minimum 10-20% required. Higher down payment = lower rates. Target 20-25% for best terms.
Step 4: Disclose ALL Debts
Include shadow debt (BNPL, crypto loans, cash advances). Honesty prevents loan denial later.
Step 5: Get Pre-Approved with Multiple Lenders
Compare rates from 3-5 Non-QM lenders. Rates vary 0.5-1% between lenders.
Get Pre-Approved with Top Non-QM Lenders →📊 Non-QM Mortgage Rates by Credit Score (Jan 2026)
| Credit Score | Bank Statement Loan | P&L Loan | DSCR Loan |
|---|---|---|---|
| 720+ | 6.5-6.75% | 6.75-7% | 6.12-6.25% |
| 680-719 | 6.75-7% | 7-7.25% | 6.25-6.5% |
| 640-679 | 7-7.25% | 7.25-7.5% | 6.5-6.62% |
| 620-639 | 7.25-7.5% | 7.5-8% | 6.62-7% |
❓ Frequently Asked Questions
Can I get a Non-QM mortgage with 10% down?
Yes, some lenders offer 10% down for bank statement loans with 700+ credit. Expect rates 0.25-0.5% higher than 20% down. Most lenders require 15-20% minimum.
Do Non-QM mortgages have PMI?
Yes, if you put down less than 20%. PMI costs 0.5-1.5% annually. Some lenders offer lender-paid PMI with slightly higher rates instead.
Can I refinance a Non-QM mortgage to conventional later?
YES! This is the recommended strategy. Get Non-QM mortgage now, then refinance to conventional (6.06%) in 2-3 years when income is more stable or tax returns show higher income.
How long does Non-QM mortgage approval take?
10-30 days depending on lender and documentation. LendFriend closes in 10-21 days. Traditional banks take 30-45 days. Have all documents ready to speed up process.
🚀 Ready to Get Pre-Approved?
Self-employed? Influencer? Gig worker? Get approved with bank statements in 48 hours. No tax returns required.
- ✅ Rates from 6.12-7.5%
- ✅ Down payment 10-20%
- ✅ Close in 10-30 days
- ✅ Compare 10+ Non-QM lenders
💰 Get Your Free Non-QM Quote:
Compare Non-QM Lenders Now →No commitment. See rates in 2 minutes. Perfect for self-employed borrowers.