For Real Estate Agents

Non-QM Cheat Sheet: Loans for the Buyers Other Lenders Turned Down

A denial usually means your buyer didn’t fit one lender’s rules, not that they can’t buy. Use this one-page guide to spot which loan fits and get them back in the market.

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  • Dozens of lenders
  • No tax returns required
  • 30+ years of experience
Spot the Fit

If Your Buyer Says This, Ask Us About That

What you hearThe loan to ask aboutWhat it qualifies on
"I’m self-employed and my tax returns don’t show enough income."Bank statement loan12 or 24 months of bank deposits. No tax returns.
"I’m an independent contractor paid on 1099s."1099 income loan1 or 2 years of 1099s.
"My CPA can show what the business really earns."Profit and loss loanA CPA-prepared profit and loss statement.
"I’m retired. I have savings but not much monthly income."Asset depletion loanCash, investments, and retirement accounts counted as income.
"I’m buying a rental and my debt ratio is too high."DSCR loanThe property’s rent. No personal income documents.
"I had a bankruptcy, foreclosure, or short sale."Recent credit event loanShorter waiting periods than conventional or FHA loans.
The Three You Will Use Most

Programs at a Glance

Bank Statement Loans

For business owners whose write-offs shrink the income on their tax returns.

Income proof12 or 24 months of statements
Credit scoreStarting around 620
Down paymentTypically 10% or more
Self-employedUsually 2 years
Property typesPrimary, second home, investment

Loan details →

1099 and P&L Loans

For contractors, commission earners, and owners with a CPA. Many agents qualify this way themselves.

1099 income1 or 2 years of 1099s
Profit and lossCPA-prepared P&L
Tax returnsNot required
Best forContractors and commission income
Property typesPrimary, second home, investment

Loan details →

Asset Depletion Loans

For retirees and others with substantial savings and limited earned income.

Income proofBank and investment statements
Eligible assetsCash, stocks, bonds, retirement
Credit scoreStarting around 660
Down paymentTypically 20% or more
Property typesPrimary, second home, investment

Loan details →

Send Us These Five Things

Text, call, or email. We will usually tell you the same day whether it works.

  • Price range and down payment
  • How the buyer is paid, and for how long
  • Estimated credit score
  • Why the other lender said no, if you know
  • Property type, and whether they will live in it

What to Tell Your Buyer

Setting expectations early keeps the deal together.

  • Rates run higher than conventional loans
  • Down payments usually start at 10% to 20%
  • Lenders want to see cash reserves after closing
  • 30-year fixed and interest-only options are available
  • The buyer can refinance later if their tax returns improve

Choice One Mortgage · Bill Lewis · (310) 614-5920 · choice1mortgage.com · NMLS #233784 · NMLS #284797 · CA DRE #01238593
Guidelines are typical and vary by lender and program. Not a commitment to lend. Equal Housing Lender.

In Their Words

What Clients and Agents Say

“They helped me with something i didn’t think was possible and they did it SO FAST!!!”
Stephanie R.Google review
“We were chosen ahead of the other 8 offers that were submitted largely because of the great job Bill did in packaging our loan to the Listing Agent.”
Brian and TinaFirst-time buyers
“I have entrusted my clients to the services of Choice One Mortgage for many years. I know they will receive honest advice and great service.”
JohnRealtor, Westlake Village, CA

Read more reviews →

Questions Agents Ask

What is a non-QM loan?

A non-QM, or non-qualified mortgage, is a home loan that documents the borrower’s ability to repay in ways other than tax returns and pay stubs, such as bank statements, assets, or rental income. It is designed for creditworthy buyers who don’t fit standard agency guidelines.

Can a buyer who was denied by a bank still qualify?

Often, yes. A bank denial usually means the buyer did not fit that bank’s guidelines, most often because of how income shows on tax returns. As a broker, Choice One Mortgage works with many lenders, including ones that qualify buyers on bank statements, 1099s, assets, or rental income.

How long does a non-QM loan take to close?

Plan on about 30 days. Timing depends mostly on how quickly the buyer provides statements and on the appraisal. Tell us the closing date in the contract and we will tell you up front whether it is realistic.

Are non-QM rates higher?

Yes, usually. The rate reflects the flexible documentation. Many buyers accept that to buy now, then refinance into a conventional loan later when their tax returns support it.

How solid is a non-QM pre-approval?

We review the bank statements or asset statements before we issue a pre-approval, so the income has already been calculated the way the lender will calculate it. We are glad to call the listing agent to explain the approval.

Which buyers are the best fit?

Self-employed buyers with at least two years in business, 1099 contractors, retirees with significant savings, and investors buying rentals. Good credit and a down payment of 10% to 20% or more help.

Read our full guide to non-QM loans →

Have a Buyer Who Was Turned Down?

Send us the scenario before they give up. There is no cost to find out, and we will tell you plainly if it will not work.

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Guidelines shown are typical and vary by lender and program. Subject to credit and property approval. Not a commitment to lend.