Non-QM loans

Updated October 2026. Plenty of good borrowers get turned down by conventional lenders. Not because they can't afford the home, but because their income doesn't fit on a standard form. Non-QM loans were built for them.

North Star Mortgage Network, Inc. is an independent Jacksonville mortgage broker serving Florida since 2000. We arrange non-QM loans through many wholesale lenders, so we can match how you actually earn to the program that fits.

What Is a Non-QM Loan?

"QM" stands for qualified mortgage, the federal standard most conventional, FHA and VA loans follow. A non-QM loan uses different, but still verified, ways to show you can repay. The lender still checks your ability to repay; it just looks at more than tax returns.

Non-QM Programs We Arrange

Program	How you qualify	Good fit for
Bank statement	12 months of personal or business bank statements instead of tax returns	Self-employed owners whose tax returns show low income
P&L only	A 12-month profit and loss statement prepared by a CPA, enrolled agent or tax preparer	Business owners with a tax professional
1099 only	Your 1099s plus year-to-date proof of income	Independent contractors, realtors, commissioned sales
WVOE only	A written verification of employment from your employer, no tax returns	W-2 earners with complex pay
Asset utilization	Your savings, investments and retirement accounts turned into qualifying income	Retirees and high-net-worth borrowers
1-year income	One year of W-2s or tax returns instead of two	Recent job changes or newer businesses
No-ratio (no income verification)	No income or employment verification for a primary or second home; larger down payment	Borrowers who can't or prefer not to document income
Equity-based	Qualify mainly on your equity at a lower loan-to-value; some programs set no minimum credit score	Recent credit events, including a recent bankruptcy
ITIN	Borrowers with an ITIN instead of a Social Security number	Primary residences and second homes
Foreign national	Non-U.S. residents buying in the U.S.	Second homes and investment property
Jumbo non-QM	Full or alternative documentation above conforming limits	High-value homes
DSCR (investors)	Qualify on the property's rent, not your income	Rental property investors (business purpose)

Available for qualified borrowers. Program guidelines apply. Loan amounts, loan-to-value limits, reserves and credit requirements vary by program.

Who Non-QM Loans Help

• Self-employed business owners whose write-offs lower their taxable income
• 1099 contractors, realtors and commissioned salespeople
• Retirees and investors with strong assets but modest monthly income
• Borrowers with a recent bankruptcy, foreclosure or late payments and solid equity
• ITIN borrowers and foreign nationals
• Buyers of non-warrantable condos and high-value homes
• Real estate investors who want to qualify on rent

Primary Home, Second Home or Investment

• Primary and second homes: bank statement, P&L, 1099, WVOE, asset utilization, 1-year income, no-ratio, equity-based, ITIN and jumbo options.
• Investment property: DSCR, alt-doc and full-doc investor loans, and foreign national programs. These are business-purpose loans for non-owner-occupied property.

What to Expect

1. Higher rate than conventional. You're paying for flexibility. Many borrowers refinance later, subject to credit approval.
2. More money down. Most programs top out between 70% and 90% loan-to-value, depending on credit, documentation and loan size.
3. Reserves. Many programs ask for a few months of payments in the bank, and more on larger loans.
4. Homebuyer education. Some programs require a short housing counseling course.
5. Prepayment penalties are common on investment property loans, not on primary homes.

Credit Events and Non-QM

Conventional loans usually require years of waiting after a bankruptcy or foreclosure. Many non-QM programs shorten that wait, often to 1 to 4 years with a lower loan-to-value. Some equity-based programs may consider borrowers who are only recently out of bankruptcy when they have substantial equity. Program guidelines apply.

What to Send Us

1. How you earn your income (W-2, self-employed, 1099, retired, other)
2. Purchase price or home value, and your down payment or equity
3. Your rough credit score and any recent credit events
4. Primary home, second home or investment

With that, we can usually tell you within a day which non-QM programs are realistic and what documents you'll need.

Non-QM Guides

• Bank statement loans
• Bank statement loans in Jacksonville
• Self-employed mortgage loans in Florida
• How long do you need to be self-employed?
• Qualify without tax returns
• Asset depletion loans
• Asset-based mortgages in Jacksonville
• ITIN loans
• Foreign national loans
• Jumbo loans in Jacksonville
• Bank statement jumbo loans
• DSCR loans for investors
• Commercial mortgage loans

Non-QM Loan Questions

What is a non-QM loan?

A non-QM (non-qualified mortgage) loan is a mortgage that doesn't follow the standard Fannie Mae, Freddie Mac, FHA or VA rules. It lets lenders qualify you with other documentation, such as bank statements, a P&L, 1099s or assets, instead of tax returns. Program guidelines apply.

Are non-QM loans only for bad credit?

No. Many non-QM borrowers have strong credit and plenty of income. They just earn it in a way that tax returns don't show well, like self-employed owners, 1099 contractors and real estate investors.

Can I get a mortgage with no income verification?

Some no-ratio programs don't verify income or employment for a primary residence or second home. They usually need more money down and strong credit, or significant equity. Available for qualified borrowers; program guidelines apply.

Can I get a mortgage soon after a bankruptcy?

Some equity-based programs may consider borrowers who are only recently out of bankruptcy when there's substantial equity in the property, at a lower loan-to-value. Other non-QM programs usually require 1 to 4 years of seasoning.

Do non-QM loans cost more?

Usually, yes. Rates and down payments are typically higher than conventional loans because the documentation is flexible. Many borrowers refinance into a conventional loan later once their tax returns or credit support it, subject to credit approval.

Can I get a non-QM loan with an ITIN or as a foreign national?

Yes. ITIN programs are available for primary residences and second homes, and foreign national programs are available for second homes and investment property. Documentation requirements apply.

How much can I borrow with a non-QM loan?

Many non-QM programs lend into the low millions, and some jumbo non-QM programs go higher for well-qualified borrowers with strong credit and reserves. Limits vary by program.

Do I need a 2-year work history?

Not always. Some programs accept 1 year of self-employment or 1 year of tax returns when you've worked in the same line of work before. Program guidelines apply.

Talk to North Star

Tell us how you earn and what you're buying, and we'll compare non-QM options with you. Call 904-880-6741, get a rate quote, or apply online. You talk to Nathan, not a call center.

North Star Mortgage Network, Inc. | Company NMLS #356789 | Nathan Young NMLS #325206 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Opportunity. Non-QM loans are not qualified mortgages and are not government-backed. Investment property loans are business-purpose loans for non-owner-occupied property. Rates, payments and terms are estimates based on the information provided and are subject to change. All loans subject to credit approval. Available for qualified borrowers; program guidelines apply. This is not a commitment to lend.