🔓 What Is a Non-QM Loan and Who Is It For?
🧾 Bank Statement Loans for Self-Employed Borrowers
Flexible loans for unique financial situations.
For years, most home loans have followed a standard playbook — strict credit guidelines, W-2 income, tax returns, and low debt-to-income ratios.
But that playbook doesn’t work for everyone.
If you’re self-employed, an investor, a 1099 earner, or someone who doesn’t fit neatly into that box, a non-QM (non-qualified mortgage) might be the smarter option.
Let’s break down the key differences — so you can see which type of loan truly fits your life.
📊 Side-by-Side Comparison
| Feature | Traditional Loan | Non-QM Loan |
|---|---|---|
| Income verification | W-2s, pay stubs, tax returns | Bank statements, 1099s, assets |
| Credit score minimum | 620+ (most lenders) | 600–680+ (flexible) |
| DTI (Debt-to-Income) | Strict max: ~43% | Flexible (up to ~50% or more) |
| Down payment | 3–5%+ | 10–20%+ (varies by loan type) |
| Loan purpose | Primary, second, investment | Primary, second, investment, non-owner |
| Past credit events | Waiting period required | Possible after 1–2 years |
| Who it’s for | W-2 employees with strong credit | Self-employed, investors, non-traditional income |
🧠 Traditional Mortgages (QM): The Standard Path
Traditional loans follow government or GSE (Fannie/Freddie) guidelines. They’re designed for:
- W-2 employees
- Salaried workers
- Buyers with full tax returns, low debt, and good credit
These loans often come with:
- Lower interest rates
- Lower down payment options
- Tighter documentation and qualifying rules
Great fit: If your finances are simple, consistent, and easy to document.
🔓 Non-QM Loans: Flexible Financing That Works With Real Life
Non-QM loans are for buyers who:
- Don’t have W-2 income
- Use write-offs to reduce taxable income
- Earn income through commissions, 1099s, or investments
- Want to qualify using bank statements or asset reserves
- Had a recent bankruptcy, foreclosure, or short sale
Great fit: If your finances are real, just not “traditional.”
💡 When Does a Non-QM Loan Make More Sense?
- You’re self-employed and write off a lot of income
- You’re a 1099 worker or freelancer
- You’re an investor qualifying based on rental cash flow (DSCR)
- You want to buy before waiting out a credit event
- You’re retired or semi-retired, and using liquid assets to qualify
📘 If your story makes sense, we’ll help you structure the loan to reflect it.
❌ Non-QM Doesn’t Mean Subprime
This is key:
Non-QM loans are fully underwritten, documented, and compliant — they’re just more flexible with:
- How income is shown
- How debt is calculated
- How credit events are considered
Many non-QM borrowers actually have high credit scores and strong finances — they just don’t fit a Fannie/Freddie mold.
🏢 Why PRMI?
PRMI offers both traditional and non-QM loans, so we don’t just push you into one box.
We help you:
- Compare real options side by side
- Get approved using your real income and assets
- Close quickly with in-house lending and underwriting
Whether you fit the mold or not, we help you get a mortgage that fits your life.
👇 Not Sure Where You Fit? Let’s Find Out Together.
We’ll review your credit, income, and financial profile — and show you if non-QM, conventional, or FHA is the smartest route.