Non-QM loans let you qualify with the proof of income you actually have: your rental income, your bank statements, your 1099s or a CPA-prepared profit and loss statement. They work for self-employed borrowers, contractors and real estate investors whose tax returns don't show the full picture. From our office in Flagler Beach, FLO Mortgage arranges non-QM loans across Florida and Georgia, and in Tennessee.
How do you earn your income?
Run your numbers
A quick estimate. Your loan officer confirms the real figures.
Estimated DSCR
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Fill in the boxes above, including a rate to test.
Estimated qualifying income
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Per month, after the expense factor.
Estimated qualifying income
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Per month, after the expense factor.
Estimate only, for education. Not a Loan Estimate, an offer or a commitment to lend. Each investor program sets its own expense factor, minimum ratio and other rules. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
Non-QM loan questions, answered in plain English
Type your question or tap a topic. Every answer starts with the short version, and you can read more if you want the details.
What is a non-QM loan?
Short answer: A non-QM loan is a mortgage that falls outside the federal qualified mortgage rules.
It can use bank statements, 1099s, a profit and loss statement or a property's rent to qualify you instead of tax returns and W-2s. FLO arranges these loans through partner lenders.
Can I get a mortgage if I'm self-employed and my tax returns show low income?
Short answer: Yes.
Bank statement, 1099 and profit and loss programs figure your income from deposits or business records, which often reflect your real earnings better than a tax return after write-offs.
Which is better, a bank statement loan or a P&L loan?
Short answer: It depends on your records.
Bank statement loans work when your deposits tell the story. P&L loans work when a CPA or tax preparer can sign a statement of your business income. A licensed loan officer can run both.
Are non-QM loans only for investors?
Short answer: No.
Bank statement, 1099 and profit and loss loans can finance a primary home, a second home or an investment property. DSCR loans are the one program limited to investment property.
Do non-QM loans still verify my income?
Short answer: Yes, for bank statement, 1099 and profit and loss loans.
They verify it with different documents. DSCR loans are the exception: they qualify on the property's rent, with no personal income verification.
Which states do you offer non-QM loans in?
Short answer: Bank statement, 1099 and profit and loss loans are available in Florida, Georgia and Tennessee.
DSCR loans for investment property are available in more states. See DSCR loans by state.
How does a bank statement loan figure my income?
Short answer: The lender totals 12 or 24 months of deposits and subtracts an expense factor for business costs.
Personal or business statements can work, depending on the program. Lenders usually leave out transfers between your own accounts and large one-time deposits. Read our bank statement loan guide.
Can I qualify with 1099 income?
Short answer: Yes. A 1099 loan uses the income on your 1099 forms instead of your tax returns.
The lender uses your latest year or a two-year average, divided by 12. It works for independent contractors, commissioned agents, travel nurses and gig workers with a steady record. Read our 1099 loan guide.
Who can prepare the profit and loss statement?
Short answer: A CPA, enrolled agent or licensed tax preparer.
A statement you prepare yourself usually doesn't qualify on its own. Some programs also ask for a few months of business bank statements. Read our profit and loss loan guide.
How long do I need to be self-employed?
Short answer: Usually two years, either in business or in the same line of work.
The lender confirms your business with a license, a CPA letter or state records. Some programs accept less time if you worked in the same field before going out on your own.
What credit score do I need for a non-QM loan?
Short answer: Each program sets its own minimum score.
Higher scores open more programs and better pricing. A recent bankruptcy, foreclosure or late mortgage payment can narrow your options, but some programs look at those case by case.
How much do I need for a down payment and reserves?
Short answer: Non-QM loans often ask for a larger down payment and more reserves than a conventional loan.
The amounts depend on the program, your credit, the property and the loan size. Reserves are months of house payments left in the bank after closing. A licensed loan officer can show you the figures for your situation.
Do non-QM loans cost more than conventional loans?
Short answer: Often, yes, because the lender takes on more risk when income is documented a different way.
Your pricing depends on your credit, down payment, documents and the property. If your tax returns later show enough income, you can look at refinancing into a conventional loan.
Is a non-QM loan safe?
Short answer: Non-QM loans for a home you live in still follow federal rules that require the lender to check that you can repay.
They aren't covered by the qualified mortgage rules, so they can use other income documents. You get the same Loan Estimate and Closing Disclosure as with any home loan.
Should I choose a non-QM loan or a conventional or FHA loan?
Short answer: If your tax returns show enough income, a conventional or FHA loan usually costs less.
Non-QM is for when they don't, or when your property or loan size doesn't fit. Compare on our conventional loan page and FHA loan page. For a large loan with full tax-return income, see our jumbo loan page.
Can I finance a Florida condo that doesn't meet Fannie Mae rules?
Short answer: Some non-QM programs accept condo buildings that don't meet Fannie Mae or Freddie Mac standards.
That can help with Florida buildings that have a high share of renters, a single owner holding many units, or repairs underway. The lender still reviews the building, its budget and its insurance.
Can I refinance or take cash out with a non-QM loan?
Short answer: Yes. Many programs allow a refinance to change your rate or term, and many allow cash-out.
Investors refinancing a rental can also look at DSCR loans for investors.
Do non-QM loans work for second homes and rentals?
Short answer: Yes. Bank statement, 1099 and profit and loss loans can finance second homes and investment properties.
If you'd rather qualify a rental on its rent than on your income, a DSCR loan may fit better.
Compare the four programs
| Program | Best for | How you prove income | Property types |
|---|---|---|---|
| Bank statement → | Self-employed borrowers and business owners | 12 or 24 months of personal or business bank statements | Primary home, second home or investment |
| 1099 → | Independent contractors, commissioned and gig workers | 1099 forms for one or two years, plus proof of recent income | Primary home, second home or investment |
| Profit and loss → | Self-employed borrowers who work with a CPA or tax preparer | A signed profit and loss statement, sometimes with bank statements | Primary home, second home or investment |
| DSCR → | Real estate investors | The property's rent, with no personal income verification | Investment property only |
What non-QM means
A qualified mortgage, or QM, follows a set of federal rules that most conventional and government loans use, including standard income documents like tax returns and W-2s. A non-QM loan falls outside those rules, so it can use other proof of income. For a home you'll live in, the lender still has to confirm you can repay the loan under the federal ability-to-repay rule.
Non-QM loans aren't government-backed, and many programs ask for a larger down payment and more reserves than a conventional loan.
What every program still checks
- Credit. Each program sets its own minimum score and reviews your history.
- Time in business. Income programs usually look for two years of self-employment or the same line of work.
- Appraisal and reserves. The lender orders an appraisal, and most programs want savings left after closing.
Non-QM loans in Florida and Georgia
Florida
We lend statewide, from Pensacola to the Keys. Condo approval and wind and flood insurance come up often, so we price them into your numbers early. Investors: see DSCR loans in Florida.
Georgia
We lend from metro Atlanta to Savannah. A Georgia attorney handles your closing, and the intangible recording tax applies to the new loan. Investors: see DSCR loans in Georgia.
Also licensed in Tennessee. Bank statement, 1099 and profit and loss loans are available in all three states. DSCR loans for investment property reach more states. See the DSCR state map.
See which program fits you
Tell us how you earn your income, and a licensed loan officer will match you to the right non-QM program. Prefer to talk? Call (386) 882-9980.
This page is general education, not a commitment to lend or an offer of specific terms. Non-QM loans are offered through investor programs. They are not government-backed and are not qualified mortgages, and their terms and costs differ from conventional loans. All loans are subject to credit approval, income and asset verification where required, appraisal, underwriting guidelines, property eligibility and program availability. Not all applicants will qualify. DSCR loans are business-purpose loans for investment property only. FLO Mortgage, LLC, company NMLS #1835856. Licensed mortgage lender in Florida (MLD2621), Georgia and Tennessee. Joy McCoy Flores, Broker Owner and licensed loan officer, individual NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures · NMLS Consumer Access.