Non-QM Loan Products
Non-QM covers several distinct products, each documenting income a different way. DSCR qualifies the property. These qualify the borrower, by a route other than a standard two-year tax return package.
Every product below falls outside the Qualified Mortgage standard — see our non-QM loan glossary page for what that label actually means and why it is a documentation category, not a credit-quality one. DSCR, covered separately, qualifies an investment property on its own rent and needs no borrower income documentation at all. The products here instead document the borrower, each by a different method.
Bank Statement Loans
A bank statement loan is a non-QM mortgage that qualifies a self-employed borrower using personal or business bank deposit history in place of tax returns.
Profit and Loss (P&L) Only Mortgage
A profit and loss only mortgage is a non-QM product that qualifies a self-employed borrower using a CPA- or tax-preparer-prepared profit and loss statement in place of full tax returns.
1099 Income Mortgage
A 1099 income mortgage is a non-QM product built for independent contractors and gig-economy workers, qualifying income from 1099 forms rather than the two-year self-employment tax return averaging conventional loans require.
Asset Depletion Mortgage
An asset depletion mortgage is a non-QM product that qualifies a borrower using their liquid assets — savings, investments, and retirement accounts — converted into an imputed monthly income figure, rather than using earned income at all.
ITIN Mortgage Loans
An ITIN mortgage is a non-QM loan for borrowers who do not have a Social Security Number but do have an IRS-issued Individual Taxpayer Identification Number, used in place of an SSN for identity and credit purposes.
DSCR vs. Bank Statement Loans
A DSCR loan qualifies a property using its own rental income against its payment. A bank statement loan qualifies a borrower using their bank deposit history. Both are non-QM products, but they measure entirely different things.
How to choose
A rental property that comfortably covers its own payment is usually the simplest case for a DSCR loan, since it skips personal income documentation entirely. A primary residence, or a rental that does not clear a DSCR floor on its own, needs one of the borrower-income products above instead — which one depends on how the borrower's income is actually generated and documented. Our DSCR vs. bank statement loans page walks through that decision in more detail for the two most common paths.
For the lenders that offer these products, see the lender directory. Product availability and specific guidelines vary by lender and change over time — confirm current requirements directly before relying on any specifics.
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