Flexible, outside-the-box mortgages for borrowers who deserve better than “computer says no.”
Quick Snapshot – 2025
| Key Feature | Non-QM Highlights |
|---|---|
| Purpose | Finance or refinance when standard “Qualified Mortgage” rules don’t fit |
| Loan Amounts | Up to $5 million+ (case-by-case) |
| Terms | 30-, 25-, 20-, 15-year fixed • 40-year (10-yr Interest-Only + 30-yr amortizing) • 5/6, 7/6 & 10/6 ARMs |
| Down Payment | 10 % – 30 % depending on credit, program, occupancy |
| Credit Scores | Typically 620+ (some down to 580 with strong compensating factors) |
| Occupancy Types | Primary • Second Home • Investment & Short-Term Rental |
| Prepayment Penalties | None on owner-occupied; 1-3 yr declining on many investor loans |
Non-QM = Non-Qualified Mortgage: loans that fall outside the strict ATR/QM safe-harbor but still meet Ability-to-Repay standards. Great news for self-employed, investors, and unique-income borrowers.
Why a Non-QM Loan?
- Alternative Income Documentation
- Use 12–24 months bank statements, P&Ls, or asset-depletion instead of tax returns.
- Higher Debt-to-Income Flexibility
- Ratios up to 55 %—or skip DTI entirely with DSCR investor programs.
- Credit Make-Sense
- Recent life events? Only 12 months seasoning after foreclosure, short sale, or BK on select plans.
- Expanded Property Eligibility
- Non-warrantable condos, condotels, mixed-use, acreage, and renovated flips all welcome.
- Interest-Only Cash-Flow
- Lower initial payments to match variable income cycles or lease-up periods.
Non-QM Programs at American Mortgage Network
| Program | Perfect For | Key Highlights |
|---|---|---|
| Bank Statement Mortgage | Self-employed ≥ 12 months | Qualify on average deposits; 90 % LTV purchase / 80 % cash-out |
| Asset-Depletion | High-net-worth retirees & investors | Use verified liquid assets in lieu of employment income |
| DSCR Investor Loan | 1–8 unit rentals & Airbnbs | Qualify on property cash flow ≥ 1.00× PITIA; close in LLC; 80 % LTV |
| ITIN / Foreign National | Non-citizens without SSN | 15–30 % down; passport & alt-credit accepted; no U.S. credit required |
| Recent Credit-Event | Borrowers 12–24 mo post-BK/foreclosure | Up to 80 % LTV with re-established credit |
| Interest-Only Jumbo | Cash-flow-sensitive high-balance buyers | 40-yr IO or 10-yr IO / 30-yr amortizing, up to $5 MM |
| Fix-&-Flip Bridge | Investors rehabbing property | 12- to 24-month interest-only, roll rehab draws into line of credit |
Every program is available through American Mortgage Network and its sister brands—California Mortgage Direct, HELOAN Guide, Ohana Mortgage Network, Senior Security Mortgage, and Mortgage Benefits Center.
Eligibility Essentials
- Credit: 620+ typical; DSCR and ITIN options down to 600–620.
- Reserves: 3–12 months PITIA (varies by program & LTV).
- DTI: Up to 55 % … or waived on DSCR & no-ratio plans.
- Seasoning: 0–12 months on charge-offs/late pays accepted case-by-case.
- Appraisals: 1 appraisal ≤ $2 MM; 2 appraisals or field review above that, or on unique property types.
Our 6-Step Non-QM Process
- Discovery Call (15 min) – Outline goals, choose best doc type.
- Custom Doc Checklist – Bank-statement template, CPA letter, or asset statements.
- Pre-Underwrite & Rate Quote – Know borrowing power before house-hunt.
- Lock & File Submission – e-sign disclosures; upload docs to secure portal.
- Valuation + Underwriting – Non-QM-experienced appraisers and credit desk.
- Close & Fund – Remote online notarization available in most states; investor loans can vest in LLC.
Typical Non-QM purchase closing: 21–30 days. Bank-statement refinances: 30–35 days.
Frequently Asked Questions
Will non-QM rates be much higher?
Rates run 0.75 %–2.0 % above comparable prime loans, but often save money versus forcing income onto tax returns or delaying purchases.
Do Non-QM loans balloon?
No—most are fully amortizing or feature interest-only periods that roll into amortization; no surprise balloon notes.
Can I refinance into a conventional loan later?
Absolutely—once tax returns and DTI fit standard guidelines, refinance any time with no pre-pay (owner-occupied) or after penalty term (investment).
Is mortgage insurance required?
No monthly MI—even above 80 % LTV. Risk is priced directly into the rate.
Are bank statements gross or net deposits?
We average gross eligible deposits, subtract a preset expense factor (default 50 % or CPA-verified), giving higher usable income.
Tools & Resources
- Bank-Statement Income Calculator – Drag-and-drop PDFs, get instant qualifying income.
- DSCR Analyzer – Test rental income vs. PITIA to hit 1.00× or better.
- Credit-Event Roadmap – Timeline cheat-sheet from discharge to loan eligibility.
- Non-QM vs. Hard Money Guide – Compare costs, terms, and speed side-by-side.
- A-to-Z Mortgage Glossary – Clarify “ATR,” “IO,” “DSCR,” and more in seconds.