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Non-Qualified Mortgages · Portfolio programs

Non-QM Loans 2026: Bank Statement, DSCR, 1099, Asset-Utilization, and More

Non-QM (Non-Qualified Mortgage) loans are portfolio products that use alternative income documentation for self-employed borrowers, real-estate investors, retirees, 1099 contractors, ITIN borrowers, and anyone else who doesn't fit agency guidelines. Fully underwritten under the CFPB's Ability-to-Repay rule. Originated by Simply Approved Mortgages (Company NMLS# 2620881).

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Quick answerSummary
  • ✓Non-QM does NOT mean unregulated — every Non-QM loan is underwritten under the CFPB Ability-to-Repay rule (12 CFR § 1026.43)
  • ✓Alternative income options: 12/24-month bank statement, P&L only, 1099-only, asset utilization, DSCR, full-doc
  • ✓DSCR investment loans qualify on the property's rent (no personal income)
  • ✓Down payment commonly 10%–30% depending on program, credit, and occupancy
  • ✓Reserves commonly 3–12 months of PITIA
  • ✓Recent credit event (BK, foreclosure, short sale)? Seasoning as short as 12–24 months on many programs
  • ✓Interest-only and 40-year options available (which is part of why they're Non-QM)
SA

Written by

Simply Approved Mortgages Team

Licensed Loan Officers · NMLS# 2620881

12 min read·Independently researched · No paid product placement
Free with your request

Get your Non-QM Loans 2026 scenario summary

Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: an estimated payment breakdown, estimated cash to close, the loan structures that may fit your file, and the documentation underwriting will ask for.

  • Estimated monthly payment with taxes and insurance
  • Estimated cash to close for your scenario
  • Loan structures your profile may fit
  • Document checklist for your file
Get my summary

Takes about 3 minutes · Summary shown on screen and emailed to you

Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.

Scenario summary

Purchase price entered
$412,000
Down payment entered
$20,600
Estimated loan amount
$391,400
Estimated cash to close
$14,300
Programs reviewed
4

Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.

Free · No obligation · Personalized guidance

Start your Non-QM loan pre-approval — under 2 minutes

Bank-statement, DSCR, asset-depletion, 1099, and foreign-national programs. We'll show your green/yellow/red decision instantly.

~2 minutes Clear next steps from a real loan officer

Not a loan application, rate lock, or commitment to lend. Binding figures appear on your Loan Estimate.

Non-QM Eligibility Helper

Check Non-QM program eligibility

Non-QM programs sit outside the QM safe harbor under 12 CFR §1026.43. Each investor sets its own guidelines. Pick a program below to see the typical borrower profile — this is informational and does not replace the investor's underwritten decision.

%
mo
mo

Strong Non-QM candidate

  • FICO ≥ 640
    Typical minimum for bank-statement-24.
  • LTV ≤ 90%
    Higher LTV requires better FICO/reserves.
  • 6+ months PITI reserves
    Documented liquid reserves after closing.
  • 2+ years of self-employment
    Verified via Articles of Incorporation, SOS record, or CPA letter.
Disclosure. Simply Approved Mortgages LLC (NMLS# 2620881). Non-QM guidelines vary sharply by investor and change frequently. The FICO, LTV, reserve, and DSCR thresholds shown reflect typical wholesale-market ranges and are for education only. Non-QM loans do not sit within the Ability-to-Repay QM safe harbor at 12 CFR §1026.43; your loan officer will document ATR compliance on any consumer-purpose Non-QM file. Business-purpose loans (DSCR, no-doc) are for investment properties only. This tool is not a credit decision or commitment to lend. Binding figures appear on your Loan Estimate.

Next steps

See Today's Rates

Emailing your Non-QM eligibility checker scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.

What is a Non-QM loan?

A Non-Qualified Mortgage (Non-QM) is any residential mortgage that does not meet the definition of a "Qualified Mortgage" under the CFPB's rule at 12 CFR § 1026.43(e). A loan can fall outside the QM safe harbor for many reasons: alternative income documentation, interest-only features, terms longer than 30 years, or DTI above the general QM threshold. Non-QM is not the same thing as subprime or "no-doc"; every Non-QM loan is fully underwritten under the CFPB's Ability-to-Repay rule at 12 CFR § 1026.43(c), which requires the lender to consider and verify eight underwriting factors before approving the loan.

The main Non-QM program families

  • Bank-Statement Loan — 12 or 24 months of personal or business bank deposits used to derive qualifying income (typically applying an expense factor for business accounts). Ideal for self-employed borrowers with strong deposits but heavy tax write-offs.
  • P&L Only — a CPA- or borrower-prepared profit-and-loss statement covering the qualifying period, sometimes without bank-statement backup.
  • 1099-Only — one or two years of 1099s from the borrower's contract-work sources, with an expense factor applied by program.
  • Asset Utilization / Asset Depletion — eligible liquid assets divided by a term (commonly 60–120 months) to create qualifying income. Great for retirees and high-net-worth borrowers.
  • DSCR (Debt Service Coverage Ratio) — investment-property loan qualified on the property's rent vs its PITIA. No personal-income underwriting.
  • Full-Doc Non-QM — traditional documentation, but the loan is Non-QM because of DTI, interest-only, 40-year term, or a recent credit event.
  • Foreign National — non-U.S. residents with foreign income and assets financing U.S. property.
  • ITIN — see the dedicated ITIN Mortgage guide.

Down payment, reserves, and rates

  • Down payment: typically 10%–30% depending on program, occupancy, credit, and reserves.
  • Reserves: typically 3–12 months of PITIA after closing; jumbo Non-QM often 12+ months.
  • Rates: typically higher than agency (Fannie/Freddie/FHA). The premium reflects portfolio-investor risk pricing for alternative documentation or Non-QM features.

Terms are program-specific and change frequently. Your written Loan Estimate discloses the exact APR, note rate, and total cost of credit. This is not a quote, lock, offer, or commitment to lend.

Ability-to-Repay compliance

The CFPB's Ability-to-Repay (ATR) rule requires every mortgage lender — QM or Non-QM — to consider and verify the borrower's ability to repay before making a loan. On a Non-QM file, ATR is documented through:

  1. Income (bank statements, P&L, 1099s, tax returns, asset utilization, or DSCR-property rents).
  2. Assets (bank, brokerage, retirement).
  3. Employment status.
  4. Monthly mortgage-related obligations (PITIA).
  5. Monthly payments on simultaneous loans.
  6. Monthly payments on other debt obligations.
  7. Monthly debt-to-income ratio or residual income.
  8. Credit history.

Non-QM is a documentation and structure category — not a compliance shortcut.

Underwriting standards that apply across Non-QM programs

Individual product matrices set the LTV and credit tiers, but a common set of base guidelines sits underneath nearly all of them:

  • Residual income — consumer-purpose Non-QM files are tested for monthly income left over after all obligations, not DTI alone.
  • Tradelines — typically one tradeline reporting 24 months or two reporting 12 months, with recent activity. Usually only the primary wage earner has to meet the tradeline test. Frozen bureaus, unresolved fraud alerts, and disputed accounts have to be cleared before closing.
  • High-cost loans — federal, state, and local high-cost loans are not eligible, and state licensing controls where a program can be offered at all.
  • Texas cash-out — Texas Section 50(a)(6) owner-occupied cash-out has its own eligibility set, seasoning requirement from the prior 50(a)(6) transaction, and compensation restrictions; several programs exclude it entirely.
  • Net tangible benefit — refinances must document a real benefit to the borrower.
  • Assets and gifts — assets are sourced and seasoned, gift funds usually require a minimum contribution from the borrower's own funds first and generally cannot be used for reserves, and a gift of equity has its own documentation path.
  • Subordinate financing — new and existing secondary liens must fit the program CLTV, be institutional on most programs, and seller carrybacks are frequently prohibited.
  • Debt treatment — installment, revolving, authorized-user, business, timeshare, student loan, lease, and debt-paid-by-others obligations each have specific counting rules that can change your qualifying number materially.
  • Business-purpose loans (DSCR and similar) require a business-purpose certification and are not consumer credit, so consumer protections such as the Ability-to-Repay rule do not apply to them.

Guidelines are investor-specific and change over time. A Simply Approved Mortgages Loan Officer will confirm the current matrix for your scenario before you rely on any figure here.

When Non-QM is the right answer

  • Self-employed with strong cash flow but low taxable income after write-offs.
  • Real-estate investor building a portfolio — DSCR closes fast and doesn't consume personal DTI.
  • Retiree with substantial liquid assets but limited earned income.
  • Recent credit event with insufficient seasoning for agency guidelines.
  • Foreign national or ITIN borrower.
  • Need interest-only or 40-year term to fit cash flow.

If your file does fit agency guidelines, agency (Fannie Mae, Freddie Mac, FHA, VA, USDA) is almost always cheaper. Simply Approved Mortgages will always price the agency path first before recommending Non-QM.

How to close a Non-QM loan

  1. 1

    Scenario review

    Send us your income situation, credit profile, and target property. We identify which Non-QM program family fits.
  2. 2

    Multi-lender shop

    We compare Non-QM programs across participating lenders on rate, down payment, reserves, and overlays for your exact scenario.
  3. 3

    Full application and disclosures

    URLA, e-consent, and Loan Estimate within 3 business days.
  4. 4

    Alternative-doc income build

    Bank statements analyzed, P&L reviewed, or DSCR rent-vs-PITIA modeled — whichever program family applies.
  5. 5

    Underwriting and appraisal

    Standard underwriting under Ability-to-Repay. Appraisal ordered by an appraisal management company.
  6. 6

    Closing Disclosure and close

    CD delivered at least 3 business days before signing. Closing follows state law timing.
Expert Insight
Non-QM is a scalpel, not a hammer. The single biggest cost of a Non-QM loan is the rate premium versus agency — sometimes 100–200+ basis points depending on program. Before choosing Non-QM, be sure the agency path is truly closed for your file. Sometimes an extra 6–12 months of seasoning, a re-shaped tax return, or a smaller loan size opens the agency door and saves tens of thousands of dollars over the life of the loan. Simply Approved Mortgages will price both paths side-by-side.
Simply Approved Mortgages Team
Licensed Loan Officers • NMLS# 2620881

Want this applied to your own file?

A Simply Approved Mortgages Loan Officer reviews your credit, income, and property against current FHA guidelines and follows up with estimated figures. Educational only — not a quote, lock, offer, or commitment to lend.

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Key qualifying numbers

Non-QM (Non-Qualified Mortgage) — max LTV, credit score & DTI at a glance

The four numbers most borrowers ask about first. Full underwriting matrix and citations are further down the page.

Max LTV

90%

Product-specific: 90% bank-statement, 85% P&L, 80% DSCR, 80% asset. Purchase primary is highest.

Min credit score

620

Non-QM floor at 620; most programs price best at 680–720+.

Max DTI

50%

43% ATR safe-harbor; up to 50% permitted under ATR general option with strong compensating factors.

ATR compliance

Required

Non-QM ≠ non-compliant. All Non-QM loans meet Ability-to-Repay (12 CFR § 1026.43).

Guidelines subject to change; lender overlays may apply. Illustrative only — not a rate quote, lock, offer, or commitment to lend. A Simply Approved Mortgages Loan Officer confirms the numbers on your actual file.

Qualifications & requirements

Non-QM (Non-Qualified Mortgage) qualifications: what you actually need to qualify

RequirementTypical standardNotes
DefinitionAny residential mortgage that does not meet the CFPB Qualified Mortgage (QM) definitionQM rules under 12 CFR 1026.43. Non-QM still requires Ability-to-Repay analysis.
Credit score620–680 typical minimum; some tiers as low as 580Pricing improves at 700+.
Down payment10–25% typical; 20–30% on investmentHigher LTV requires stronger reserves and FICO.
Debt-to-incomeUp to 50–55% or no DTI cap on DSCR / asset-based tiersDSCR uses rental cash-flow ratio instead of borrower DTI.
Documentation methodsBank statement (12–24 mo), 1099-only, P&L only, asset-utilization, DSCR, foreign national, ITINEach documentation path has its own guideline set.
Reserves6–12 months PITI typical; 12–24 months on jumbo tiersHigher reserves for investor and multi-property borrowers.
Property type1–4 unit, condo, PUD, non-warrantable condo, short-term rentalNon-warrantable condo allowed on many programs.
OccupancyPrimary, second home, and investmentDSCR is investment-only.
Waiting periods after credit eventsBK/foreclosure as recent as 1 day out on select programsPricing premium applies for recent events.

Sources: CFPB QM rule (12 CFR 1026.43), individual non-QM investor guidelines. Non-QM is not government or GSE-backed; program terms vary. Individual results vary; not a commitment to lend.

What you can do with this loan

✓

Purchase or refinance for self-employed borrowers using bank statements instead of tax returns

✓

Qualify using 1099 gross income (12 or 24 months) — great for gig workers and contractors

✓

Qualify using a CPA-prepared Profit & Loss statement

✓

DSCR investor purchase — qualify based on rental income vs. PITIA, no personal DTI

✓

Foreign national purchase without US credit or SSN

✓

ITIN borrower purchase using nontraditional credit

✓

Asset-based / asset-utilization qualification using liquid assets

✓

Purchase a non-warrantable condo, condotel, or short-term rental property

✓

Buy or refinance shortly after a credit event (BK, foreclosure, short sale)

Non-QM Loan: Pros and Cons

Pros of a Non-QM loan

  • +Alternative documentation: 12–24 months of bank statements, 1099 income, DSCR (rental income), or asset utilization instead of full tax returns
  • +Fully underwritten under the ATR/QM rule (12 CFR 1026.43) — lender still verifies ability to repay
  • +Primary, second-home, and investment property options depending on program
  • +Higher DTI limits available on some programs vs. agency guidelines
  • +Self-employed borrowers whose tax returns understate qualifying income can still qualify
  • +DSCR programs qualify off property cash flow rather than personal income

Cons / trade-offs of a Non-QM loan

  • −Rate and points typically higher than QM/agency loans
  • −Larger down payment usually required (commonly 15–25%)
  • −Tighter reserves — often 3–12 months PITI depending on program
  • −Not eligible for the QM safe-harbor / presumption of ATR compliance
  • −Prepayment penalties on some investor DSCR loans (disclosed on Loan Estimate)
  • −Fewer participating lenders than agency products

See where you stand on these requirements

A Simply Approved Mortgages Loan Officer will review your credit, income, and reserves against real program guidelines — no obligation.

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Worked example

How this loan actually works — a full example

A self-employed borrower with 24 months of business bank statements and a 700 FICO buys a $600,000 primary residence with 15% down using a bank-statement non-QM loan.

Inputs

Purchase price
$600,000
Down payment (15%)
$90,000
Loan amount
$510,000
Documentation
24 months business bank statements
Qualifying income method
50% expense factor on gross deposits
Illustrative rate (30-yr fixed non-QM)
7.99%
Property taxes
$500/mo
Homeowner's insurance
$140/mo

Calculation

  1. 1
    Avg. monthly deposits (24 mo)
    $45,000
  2. 2
    Qualifying income (50% expense factor)
    $22,500 / month
  3. 3
    Principal & interest (30-yr @ 7.99%)
    ≈ $3,742 / month
  4. 4
    Taxes + insurance
    $640 / month
  5. 5
    Estimated total PITI
    ≈ $4,382 / month
  6. 6
    DTI (housing only, on qualifying income)
    ≈ 19.5% — well within program limits
Outcome
Illustrative only. Bank-statement qualification methods, expense factors, and pricing vary by investor. Not a quote or commitment to lend.

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.

Common Non-QM scenarios

✓

Self-employed, low taxable income

Business owner deposits $40k/mo but writes off aggressively on Schedule C. Bank-statement program qualifies on 24 months of deposits, not tax returns.

✓

DSCR investor

Buys a $500k rental with 25% down. Property rents for $3,800/mo with $3,200 PITIA — DSCR = 1.19. Personal income not underwritten.

✓

Retiree with liquid assets

Age 70 with $1.6M in brokerage. Asset-utilization program divides eligible assets by 84 months to create qualifying income.

✓

Post-BK borrower

18 months after Chapter 7 discharge with rebuilt 680 FICO — Non-QM 15%-down primary purchase.

Pricing snapshot

Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.

Non-QM Loan Rates — Today's Options at a Glance

Four real options from today's wholesale pricing for one documented sample scenario per program — no form needed. Updated twice each business day, about 10 AM and 2 PM Eastern. Your own rate depends on your credit, down payment, property, state and lock date.

Live pricing tool

Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.

Non-QM Loan Rates Today — Bank Statement, 1099 & P&L Pricing

Enter your scenario to see live wholesale pricing for Florida and Colorado. Figures are illustrative and not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate.

Non-QM loan pricing tool

Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.

Bank statement, 1099, P&L and asset-based income options for self-employed borrowers. Every figure shown comes from our pricing provider for the scenario you enter — nothing is estimated.

Pricing shown is based on the scenario entered and wholesale pricing available at the time of the search. It is not a rate lock, loan approval, commitment to lend, or guarantee of terms. Rates and pricing change frequently and expire. Your actual rate, APR, payment, and costs depend on a complete application, verified credit and income, property and appraisal review, and lender underwriting approval. Binding figures appear on your Loan Estimate. Payment shown is principal and interest only and excludes taxes, insurance and mortgage insurance. Simply Approved Mortgages LLC · NMLS# 2620881 · Equal Housing Opportunity.

Live market pricing

Today's Non-QM loan rates (2026)

Non-QM loan pricing is quoted daily and depends on credit, loan amount, LTV/CLTV, occupancy, and lender program. Figures below are for education only — your binding rate and APR appear on your Loan Estimate.

  • ✓Pricing driven by loan type (bank-statement, DSCR, 1099-only, asset-utilization), FICO, DTI/DSCR, LTV, and occupancy
  • ✓Each Non-QM lender publishes its own rate matrix — no agency pricing grid applies
  • ✓Typically priced above QM/agency loans because loans are held on balance sheet or securitized privately
  • ✓Fixed-rate, ARM, and interest-only options available depending on program
  • ✓Prepayment penalties may apply on some DSCR investor programs — always confirmed on your Loan Estimate
See Today's RatesStart My Approval

What affects your rate

  • ✓

    Credit score

    Higher middle FICO scores unlock lower base rates and better pricing tiers.

  • ✓

    Loan-to-value (LTV)

    Larger down payments or more equity generally price better.

  • ✓

    Loan amount

    Conforming, high-balance, and jumbo tiers each price differently.

  • ✓

    Occupancy & property type

    Primary residence, second home, and investment each have pricing adjustments.

  • ✓

    Market timing

    Rates move daily with MBS and Treasury markets; locking protects you from increases.

Rates and APRs shown are illustrative and change daily. Not a quote, lock, offer, or commitment to lend. Binding figures appear on your official Loan Estimate. Simply Approved Mortgages LLC, NMLS# 2620881. Equal Housing Opportunity.

Non-QM Loan Payment Calculator

Estimate a full PITI payment on your Non-QM loan with a plain-English breakdown of principal & interest, property taxes, homeowner's insurance, and HOA — plus a loan amortization summary. Illustrative only; your Loan Estimate will show the binding figures.

Estimate your payment
Home price$450,000
$
Down payment$45,000 (10.0%)
$
Interest rate6.25%
%
Loan term30 years
Credit tier (FICO)740-759
Property taxes (annual %)1.20%
%
Homeowner's insurance (annual)$1,650
$
HOA (monthly)$0
$
Principal & interest
$2,494
Taxes + insurance
$588
Loan amount
$405,000
Estimated monthly payment (PITI)
Illustrative — binding figures on your Loan Estimate
$3,082

Monthly payment breakdown

Principal & interest$2,494 · 81%
Property taxes (1.20%/yr)$450 · 15%
Homeowner's insurance$138 · 4%

Loan amortization summary (30-year term)

Total interest paid
$492,716
Total paid over term
$897,716
Year 1 · to interest
$25,178
Year 1 · to principal
$4,746

Assumes a fixed-rate 30-year loan held to maturity with no prepayments. Actual amortization varies with extra principal payments, escrow adjustments, PMI/MIP, and any rate resets on an ARM.

Free • No obligation

Use my estimate — see today's rates

We'll pre-fill your calculator numbers into the quote form below. A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your scenario.

Home price$450,000
Down payment$45,000 (10.0%)
Loan amount$405,000
Rate / term6.25% · 30y
Credit tier740-759
Est. total PITI$3,082
See Today's Rates

Pre-approval is a soft check with no SSN and no hard credit pull. Not a loan approval or commitment to lend — binding figures appear on your federally required Loan Estimate.

Ready to move forward?

Turn these numbers into a real pre-approval

Continue on our secure application page. Your Simply Approved Mortgages Loan Officer will review your numbers and follow up within one business day.

Start My Approval →See Today's RatesOr call 877-813-7219

No obligation. Soft-pull options may be available.*

Wholesale advantage

Compare loan officer compensation on your mortgage quote

Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.

Simply Approved Mortgages compensation (1.5%)$4,500
Quote you entered (2.75%)$8,250

Compensation difference on this illustration: $3,750.

How lower compensation can help you

Room for a lower rate

When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.

Possible credits toward closing

Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.

More purchasing power

A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.

Wholesale, not retail

As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.

Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.

Get a second opinion on your Loan Estimate

Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.

Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.

Get Ready

Document Checklist for your Non-QM Loan

Gathering these documents up front helps your Simply Approved Mortgages Loan Officer issue a stronger pre-approval and move your Non-QM Loan to Clear-to-Close faster. Actual items required vary by scenario — your loan officer will confirm the final list.

Alternative Income Documentation

  • ✓Bank-statement program: 12 or 24 months of personal or business bank statements (all pages)
  • ✓P&L program: CPA- or borrower-prepared profit-and-loss statement covering the qualifying period
  • ✓1099-only program: 1099s for the last 1–2 years
  • ✓Asset-utilization / asset-depletion: statements documenting eligible liquid assets
  • ✓Full-doc option: tax returns and paystubs when applicable

Rental / Other Income (if applicable)

  • ✓Current signed lease agreements for every rental property
  • ✓Schedule E from personal tax returns (last 2 years)
  • ✓Two months of bank statements showing rent deposits
  • ✓Child support / alimony court order + 12-month receipt history (if used to qualify)

Assets & Reserves

  • ✓2 months of bank statements (all pages)
  • ✓Reserves — Non-QM programs typically require 3–12 months of PITIA in reserves
  • ✓Large deposit letters of explanation with source documentation

Identity & Residency

  • ✓Government-issued photo ID (driver's license or passport)
  • ✓Social Security card or ITIN letter
  • ✓Two years of residency history with addresses

Credit & Liabilities

  • ✓Written credit report authorization
  • ✓Letter of explanation for any late payments, collections, or inquiries
  • ✓Bankruptcy discharge papers or foreclosure documentation (if applicable)
  • ✓Child support / alimony order (if paying or receiving)
  • ✓Divorce decree / separation agreement (only if applicable)

Property & Purchase

  • ✓Fully executed purchase contract with all addenda
  • ✓Earnest money deposit receipt + source of funds
  • ✓Homeowners insurance quote (binder before closing)
  • ✓HOA / condo questionnaire and dues statement (if applicable)

Non-QM Program Overlays

  • ✓Recent-event documentation for bankruptcy / foreclosure / short sale (Non-QM allows shorter seasoning than agency)
  • ✓Letter of explanation for any credit event within the last 4 years
  • ✓Interest-only or 40-year loan disclosures (if applicable)
  • ✓Foreign national programs: valid visa/passport and U.S. bank account documentation

Educational checklist only. Not a commitment to lend and not a complete list of conditions. Documentation requirements are governed by agency guidelines (Fannie Mae Selling Guide, FHA Handbook 4000.1 incl. Update 18 (August 12, 2026), VA Lender's Handbook, USDA HB-1-3555) and individual investor overlays. Your Simply Approved Mortgages Loan Officer will provide your specific document list based on your scenario.

Credit Documentation & Monitoring

Credit Reports and Credit Monitoring for your Non-QM Loan

Credit is one of the four underwriting buckets every lender reviews — and one of the few you can actively improve before you apply. Monitoring your credit throughout the process helps you catch errors, fraud, and score changes early, which protects your approval timeline and your rate.

Step 1 · Lender Pull

Ordering Credit for Your Pre-Approval File

Once you sign your loan application (Form 1003) and disclosures, your Simply Approved Mortgages Loan Officer orders a tri-merge residential mortgage credit report (RMCR) from Equifax, Experian, and TransUnion. This is a hard inquiry, but FICO's model treats mortgage inquiries within a 45-day window as a single event, so shopping lenders during that window will not stack on your score.

  • What we need from you: signed borrower authorization, government-issued photo ID, Social Security number (or ITIN), and current address.
  • What the report shows underwriters: middle FICO score, open tradelines, minimum payments, late history, collections, public records, and recent inquiries.
  • How long it's valid: 120 days for conventional loans and for FHA/VA/USDA (HUD guidelines, VA Lender's Handbook Ch. 4). Older reports must be re-pulled before closing.
  • Rapid rescore: if a legitimate error is on your report, we can request a rapid rescore in 3–7 business days after you supply documentation from the creditor.
Pay for Your Credit Report →

This link redirects to our third-party credit vendor's payment portal. You pay the report fee directly so we can pull your tri-merge credit report for your pre-approval file. A credit pull is required for underwriting; this is not a commitment to lend.

Step 2 · Self-Check

Review and Monitor Your Credit at MyITINCredit.com

Before we pull your file, review and monitor your credit at MyITINCredit.com. Their $1 promotional trial gives you tri-bureau visibility plus ongoing credit monitoring so you can catch changes, disputes, or new accounts as they appear — not after they've already delayed your loan.

  • Verify accuracy: confirm names, addresses, SSN/ITIN, and every open account belong to you.
  • Dispute errors: the Fair Credit Reporting Act gives you the right to dispute inaccurate items directly with the bureau — no charge.
  • Address collections and charge-offs: a settled or paid collection can be documented in advance so it does not stall underwriting.
  • Pay down utilization: credit-card balances reported below 30% of the limit typically produce the strongest scores.
  • Avoid new credit: do not open new cards, finance a car, or co-sign for anyone from now through closing.
  • Monitor continuously: credit monitoring alerts you to new inquiries, balance changes, and potential identity theft while your loan is in process.
Check & Monitor Your Credit at MyITINCredit.com →

MyITINCredit.com is a service operated by Simply Approved Corporation (a DBA of that entity), which is the parent company of Simply Approved Mortgages LLC. Simply Approved Mortgages may receive subscription revenue if you choose to enroll. Credit monitoring through MyITINCredit.com is optional and is not required to apply for or obtain a mortgage with us. Promotional pricing, trial terms, and monitoring features are set by MyITINCredit.com and subject to change.

Why credit monitoring matters during a mortgage — A single new collection, missed payment, or unauthorized inquiry can change your qualifying score or trigger additional underwriting conditions. Typical minimum scores* — Conventional 620, FHA 580 (3.5% down) or 500 (10% down), VA no HUD minimum (most lenders 580–620), USDA typically 640, Jumbo 680–740, Doctor Mortgage 680–700+, Non-QM/DSCR varies by program, ITIN 620–680 alternative credit. Investor and lender overlays apply; individual results vary. Not a commitment to lend.

Trusted government resources

These independent government resources can help you research mortgage programs, rates, and your rights before you apply.

Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.

FAQs reviewed by Simply Approved Mortgages · November 2026

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Frequently Asked Questions About Non-QM Loans 2026

Answers to the most common about non-qm loans 2026 questions, written by licensed loan officers.

A Non-Qualified Mortgage (Non-QM) is a home loan that does not meet the Consumer Financial Protection Bureau's definition of a "Qualified Mortgage" under 12 CFR § 1026.43. That does not make it a bad or predatory loan — it means it uses alternative documentation, structure, or features (such as interest-only or 40-year terms) that fall outside the QM safe harbor. Non-QM lenders still must comply with the CFPB's Ability-to-Repay rule.
Ask Sam AI

Ask SAM anything about mortgages

SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.

Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.

SAM is an AI assistant — not a licensed loan officer, attorney, CPA or financial adviser. Answers are educational only, are not a quote, lock, offer or commitment to lend, and material loan terms must be reviewed by a Simply Approved Mortgages Loan Officer. Never share SSN/ITIN, date of birth, account numbers or passwords in chat. Residential mortgage loans are arranged in Florida and Colorado. Start My Approval.

Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.

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Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.

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By state and city

Non-QM Mortgages by State, City, and County

County loan limits, property taxes, insurance costs, and market conditions change what this program looks like locally. Pick your market for the version written for it. Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado.

Florida

Non-QM Mortgages in Florida

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Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.

Non-QM programs use alternative income documentation for self-employed and investor borrowers.

What's your goal?
Purchase price$450,000
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Down payment (10.0%)$45,000
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A range is enough here — no credit report is pulled and your credit is not affected.

Estimated monthly payment at these numbers
$3,246

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Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.

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Licensing & Disclosures

Simply Approved Mortgages LLC | NMLS #2620881

Florida Branch Office (Miami, FL) | Branch NMLS #2688012

Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration

Business Phone: (877) 813-7219

Equal Housing Opportunity

Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.

Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.

Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.

Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.

Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.

Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.

Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.

Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.

Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.

No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.

Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.

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