Alternative income documentation
Bank statements, 1099s, profit-and-loss, asset depletion, rent rolls — pick the one that reflects how you actually earn.
Non-QM and expanded mortgage programs in Texas.
When standard documentation does not fit your borrower profile, expanded (Non-QM) programs use alternative income, asset, or property qualification. For Texas borrowers conventional underwriting cannot approve.
- Alternative documentation accepted
- Self-employed + 1099 + investor
- Texas Non-QM specialty lender
Non-QM is a category, not a single product.
Non-QM (Non-Qualified Mortgage) refers to loans outside the QM safe harbor — loans that do not meet the Consumer Financial Protection Bureau’s strict QM standards (debt-to-income limits, documentation requirements, fee caps, and feature restrictions). They are not predatory. They are specialty products for borrowers whose income, assets, or properties do not fit the standard conventional / FHA / VA boxes. A Non-QM loan can be a self-employed bank-statement file, an investor DSCR file, a high-net-worth asset-depletion file, or a foreign-national file — each with its own underwriting rules.
How a Non-QM loan goes from inquiry to keys.
- 01
Identify the right Non-QM product
We start by mapping your situation against the Non-QM menu — bank statement, 1099, P&L, asset depletion, DSCR, foreign national, ITIN, fix-and-flip, bridge, portfolio, STR. The right product depends on income source and what you are buying.
- 02
Gather alt-doc requirements
Each product has its own document list. Bank-statement files need 12–24 months of statements. DSCR files need a property income worksheet. Asset-depletion files need brokerage and bank statements. We pull only what the chosen product requires.
- 03
Submit to a specialty Non-QM lender
Non-QM files do not run through agency automated underwriting — they go to specialty investors who underwrite manually against their own matrices. We shop the file across multiple desks to land the cleanest pricing.
- 04
Underwriting on alternative criteria
Underwriting reviews against the alternative documentation rules — deposit averages, asset-depletion math, DSCR ratio, etc. Conditions get cleared on the same parallel track.
- 05
Close
Non-QM files typically close in 21–30 days once the file is clean. TRID closing disclosure, signing at title, funds wire, keys.
Built for Texas borrowers conventional lenders cannot approve.
The QM safe harbor was designed to keep predatory lending out of the housing market — and it did. The unintended side effect is that millions of legitimate, creditworthy borrowers fell outside the QM box: self-employed business owners with strong cash flow but tax-return deductions, real estate investors qualifying off rents instead of W-2s, doctors mid-residency, foreign nationals, ITIN-holders, retirees living on assets. Non-QM exists for exactly those borrowers. Q Mortgage runs Non-QM files routinely across the full product menu, so we know which investor is sharpest on each profile.
A Non-QM program is the right tool when:
- You are self-employed with a strong business but tax-return deductions that crush qualifying income
- You are a 1099 contractor with variable income that does not fit conventional averaging
- You are a real estate investor qualifying on rental income (DSCR)
- You are a foreign national or ITIN borrower without a Social Security Number
- You have a recent credit event (bankruptcy, foreclosure, short sale) that QM rules exclude
Why a Non-QM program works when conventional says no.
No tax-return reliance for many products
Bank-statement, 1099-only, and asset-depletion files do not require tax returns. Useful when your returns understate real cash flow.
Property-based qualification (DSCR)
Investor DSCR loans qualify off the property’s rent — your personal income is not part of the underwriting calculation.
Higher loan amounts available
Many Non-QM investors run loan amounts well into the jumbo range, including for alt-doc files that conventional jumbo would not touch.
Faster funding for fix-and-flip / bridge
Short-term Non-QM products (fix-and-flip, bridge) can close in 10–14 days when the property and exit are clean.
Investor-friendly terms when needed
Non-QM is the engine behind most Texas investor financing — DSCR, portfolio, STR, and fix-and-flip products all live here.
10+
Non-QM products available
Non-QM questions, answered.
What does Non-QM mean?
Non-QM stands for Non-Qualified Mortgage — any mortgage that does not meet the CFPB’s Qualified Mortgage standards. QM has strict rules around debt-to-income ratio, documentation, fees, and product features. Non-QM loans operate outside those rules using alternative underwriting criteria.
Are Non-QM loans predatory?
No. The Non-QM label is a regulatory category, not a quality judgment. Today’s Non-QM market is dominated by mainstream institutional investors writing well-documented, fully amortizing loans to borrowers who simply do not fit the agency box. The pre-2008 abuses that the QM rule was designed to prevent are not what the modern Non-QM market sells.
Why do they exist if they are not QM?
Because there is a real population of creditworthy borrowers — self-employed, investors, foreign nationals, ITIN-holders, retirees — who legitimately cannot document income the way QM rules require. Non-QM products give those borrowers a path to financing without forcing them into ill-fitting agency programs.
How do rates compare to conventional?
Non-QM rates run higher than agency conventional, typically by 50–150 basis points depending on product, profile, and current market. The premium reflects the lack of agency liquidity — Non-QM loans are held on lender balance sheets or sold to private investors rather than to Fannie Mae or Freddie Mac. We show live pricing across multiple Non-QM investors so you see your actual options.
Can I refinance from Non-QM to conventional later?
Yes — and this is a common play. Borrowers often use Non-QM to get into the home now and then refinance into conventional once their tax returns, employment history, or credit profile fit the agency box. We design the original file with that exit in mind when it makes sense.
Which Non-QM product is right for me?
Depends entirely on income source and what you are buying. Self-employed buying a primary home → bank statement. Real estate investor → DSCR. High-net-worth retiree → asset depletion. Foreign national → foreign national. ITIN holder → ITIN. We map your profile against the menu before recommending a product, not the other way around.
Looking for a non-traditional mortgage in Texas?
Non-QM requirements — varies per product.
- Each Non-QM product has its own requirements — see the specific product pages for binding details
- Generally: 660+ FICO across most Non-QM products
- 10–30% down payment range depending on product and profile
- Reserves required (typically 6+ months PITI) and Texas property
The major Non-QM categories at a glance.
| Income source | Best for | Down % | FICO floor | |
|---|---|---|---|---|
| Bank Statement | 12–24 months of bank deposits | Self-employed with strong cash flow but heavy tax write-offs | 10–20% | 660 |
| DSCR | Property rent (DSCR ratio) | Real estate investors qualifying off the property | 20–25% | 680 |
| Asset Depletion | Liquid assets converted to monthly income | Retirees and high-net-worth borrowers without W-2 | 20%+ | 700 |
| Foreign National | International credit + asset verification | Non-US-resident foreign nationals buying in Texas | 25–40% | N/A (international) |
Ready to move on a Expanded Program (Non-QM)?
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Expanded Program (Non-QM) available across Texas, including:
Other ways we close
Bank Statement Loans
The most common Non-QM product — qualifies self-employed Texas buyers off 12–24 months of deposits.
Learn moreDSCR Loans
Investor financing that qualifies on the property’s rent ratio rather than personal income.
Learn moreAsset Depletion
For high-net-worth borrowers qualifying off liquid assets when traditional income documentation falls short.
Learn more