Non-QM DSCR Rental & Asset-Based Loans — Flexible Investment Property Financing
Non-QM loans (Non-Qualified Mortgage loans) are investment property loans that fall outside the traditional 'qualified mortgage' guidelines set by the Consumer Financial Protection Bureau. These products are specifically designed for real estate investors who have strong assets and deal flow but don't fit the conventional income documentation mold — including self-employed borrowers, investors with complex returns, foreign nationals, and those with recent credit events.
What Are Non-QM Loans?
Non-QM loans allow lenders to use alternative methods to assess a borrower's ability to repay rather than standard income documentation. For investment property lending, this typically means qualifying on the property's cash flow (DSCR), the borrower's assets (asset depletion), bank statements, or pure equity (hard equity / no-doc programs).
Non-QM Loan Programs We Offer
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DSCR Rental Loans — qualify on property income, no personal income required
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Bank Statement Loans — 12 or 24 months of bank statements in lieu of tax returns
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Asset Depletion / Asset-Based Loans — use liquid assets to qualify
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Equity-Based / No-Doc Programs — high LTV equity drives approval
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Foreign National Loans — investment property financing for non-US residents
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Recent Credit Event Programs — financing available after bankruptcy, foreclosure, or short sale
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Interest-Only Investment Loans — maximize short-term cash flow
Asset-Based Lending: Qualify on Property Equity
Pure asset-based or equity-based lending approves loans primarily on the value of the real estate collateral rather than the borrower's income or credit. For investors with significant equity in their properties or strong property cash flow, asset-based programs can provide financing that would be unavailable through conventional channels.
Who Benefits from Non-QM Investment Loans?
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Self-employed real estate investors with complex tax returns
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Investors who write off significant income through depreciation
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Foreign nationals and non-US residents investing in US real estate
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Borrowers with recent credit events (bankruptcy, foreclosure, short sale)
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Investors building large rental portfolios who've hit conventional loan limits
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Business owners with strong cash flow but low reported taxable income
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Investors transitioning from hard money to long-term rental financing
Non-QM Loan FAQ
What is the difference between Non-QM and Hard Money?
Hard money loans are typically short-term (6–24 months) and used for acquisitions, flips, or bridge situations. Non-QM loans are typically longer-term (5–30 years) and used for stabilized rental properties. Both avoid traditional income verification but serve different holding periods and strategies.
Do Non-QM loans have higher rates than conventional mortgages?
Non-QM investment loans generally carry slightly higher rates than conventional Fannie/Freddie investment loans due to the flexible qualification standards. However, for investors who don't qualify conventionally, Non-QM programs can offer significantly better terms than short-term hard money alternatives.