Non-QM Loans

You run a profitable business but write off everything on your taxes. You're a real estate investor with 12 properties. You just came off a bankruptcy and traditional lenders won't touch you. You need a Non-QM loan — and at AFC Mortgage Group, we've been doing them long before most lenders knew the acronym.

What Is a Non-QM Loan?

A Non-QM (Non-Qualified Mortgage) loan uses alternative methods to verify your ability to repay, rather than relying exclusively on W-2s, tax returns, and traditional debt-to-income ratios. They're not subprime or predatory — they're purpose-built for borrowers who have the income and assets to support a home purchase but can't prove it through traditional documentation.

Bank statements instead of tax returns. Asset balances instead of pay stubs. Recent credit events explained by circumstances, not just reduced to a score. At AFC, we work with multiple Non-QM investors and programs — the right program depends on your specific income type, documentation, and goals.

Who Is a Non-QM Loan Right For?

Self-employed business owners whose tax returns show low income due to write-offs. Entrepreneurs and gig workers with strong cash flow. Real estate investors qualifying on rental income. Borrowers with recent credit events who have recovered financially. Foreign nationals purchasing U.S. property. High-net-worth individuals qualifying through asset depletion. Retirees living off investments. And borrowers who need interest-only payments.

How Non-QM Loans Work at AFC

Step 1: We Figure Out Your Story. Every Non-QM borrower has a unique financial picture. We understand how you earn money, where your assets are, and what documentation you have before matching you to a program.

Step 2: Match You to the Right Program. We compare options across multiple Non-QM investors — 12-month bank statements, 24-month programs, asset depletion — and present you with the best fit including rate, terms, and total cost.

Step 3: Documentation and Underwriting. Instead of tax returns and W-2s, we collect bank statements, asset statements, CPA letters, or lease agreements. Our in-house team packages your file to the investor's exact specifications.

Step 4: Approval and Close. Once the investor approves, we move to closing. Non-QM loans typically close in 3 to 5 weeks depending on program complexity. We communicate every step of the way so you're never guessing where things stand.

Key Benefits of Non-QM Loans at AFC

Your Real Income Counts. Bank statement programs use your actual deposits — 12 or 24 months — to calculate qualifying income. If your business deposits $30,000 a month but your tax return shows $60,000 a year, we use the deposits.

Multiple Programs, One Lender. We work with multiple Non-QM investors so you're not limited to whatever product one bank happens to sell. Different situations need different solutions — and we have access to all of them.

Recent Credit Events Don't Define You. Had a bankruptcy, foreclosure, or short sale? Non-QM programs have shorter waiting periods than conventional or FHA. If you've recovered financially and can demonstrate the ability to repay, there's likely a path forward.

Frequently Asked Questions

What is a bank statement loan?

A bank statement loan qualifies you based on 12 or 24 months of personal or business bank statements rather than tax returns. Your qualifying income is calculated from your average monthly deposits, with an expense factor applied for business accounts. This is the most common Non-QM product for self-employed borrowers.

Are Non-QM loan rates higher than conventional?

Yes, typically 1–2% higher than conventional rates, reflecting the additional risk and alternative documentation. But for borrowers who can't qualify conventionally, the comparison isn't Non-QM vs. conventional — it's Non-QM vs. not buying. And you can always refinance into a conventional loan once your documentation supports it.

How soon after bankruptcy can I get a Non-QM loan?

Some Non-QM programs allow financing as soon as one day after a bankruptcy discharge, foreclosure, or short sale. Requirements vary by program — most will want to see a larger down payment (15–25%), higher credit score, and clear evidence of financial recovery. We'll match you to the program with the best terms for your situation.