When traditional mortgage options don’t quite fit your situation, non-QM (non-qualified mortgage) loans can open doors that conventional lenders often close. These programs are designed for borrowers with unique financial profiles, such as self-employed workers, small business owners, investors, gig workers, and foreign nationals.
However, the best results are usually achieved by working with the top non-QM mortgage lenders. They have proven experience in structuring flexible loan solutions around non-traditional income, navigating complex underwriting scenarios, and helping you meet qualification standards using alternative income verification.
Defy Mortgage specializes in designing personalized non-QM loan strategies that match your goals. Whether you’re buying investment property, expanding your portfolio, or refinancing for better liquidity, we can guide you through the application process with confidence.
Here’s what you can expect to learn from this guide:
- A breakdown of the most common Non-QM loan types, including DSCR, bank statement, and asset depletion loans.
- A curated list of top Non-QM mortgage lenders and brokers for 2025.
- Step-by-step guidance on how to qualify for and choose the right lender.
TL;DR
- Non-QM loans help borrowers with complex or unconventional income qualify for a loan.
- The top non-QM lenders in 2025 emphasize speed, flexibility, and real-world underwriting instead of rigid qualification criteria.
- DSCR, bank statement, and asset depletion loans remain the strongest tools for investors, self-employed borrowers, and high-net-worth individuals.
- 7 top non-QM mortgage lenders that you should look into
Let’s dive in!
What Is a Non-Traditional Mortgage Lender?
The top non-QM mortgage lenders serve borrowers who don’t meet the rigid requirements of conventional lenders, such as steady W-2 income or standard tax returns. Non-qualified mortgage lenders allow borrowers to qualify using alternative income verification, such as bank statements, profit & loss statements, rental income, and asset holdings.
Defy Mortgage offers a variety of loan options that fall under the category of non-traditional mortgage loans, including:
- Bank Statement Loans
- Profit & Loss (P&L) Statement Loans
- DSCR (Debt Service Coverage Ratio) Loans
- Asset Depletion Loans
- Interest-Only Mortgages
- Foreign National Loans
- Fix-and-Flip Loans
- Construction Loans
The Top 7 Non-QM Mortgage Lenders and Brokers
The right lender makes all the difference when it comes to getting the most value out of your mortgage. To help you on your search, we’ve chosen the 7 top non-QM lenders based on their range of programs, self-employed and investor-friendly underwriting, and proven expertise in non-traditional financing.
Fairway Independent Mortgage Company
Loan types offered:
- Bank Statement Loans
- 1099 / Self-Employed Borrower Loans
- Asset Utilization (Asset Depletion) Loans
- Debt Service Coverage Ratio (DSCR) Loans
- Programs for Borrowers with Recent Credit Events
- ITIN / Foreign National Loans
- Interest-Only Loan Options
Pros
- Broad loan selection, including FHA, VA, USDA, jumbo, and specialized options like physician and non-QM loans.
- Consistently earns strong customer satisfaction scores from J.D. Power and Zillow reviewers.
Cons
- Does not publicly list mortgage rates on its website.
- Online assistance requires submitting contact details, and phone support is primarily directed toward current borrowers.
Defy Mortgage
Loan types offered
- DSCR Loans: For real estate investors who want to qualify using a property’s cash flow rather than their personal income.
- Bank Statement Loans: For borrowers with complex income profiles, bank statement loans offer a more direct way to prove income using the last 12-24 months of business or personal bank statements.
- Profit & Loss Statement Loans: Similar to bank statements, except they let borrowers use the last 12-24 months of business profit & loss statements to qualify.
- Foreign National Loans: These allow non-US residents without a US FICO score or SSN to qualify for a loan using proof of income and creditworthiness from their country of origin.
- Asset Depletion Loans: For high-net-worth individuals with significant liquid assets such as savings, money market, stocks, and retirement accounts.
- Interest-Only Options: Allows borrowers to pay only interest payments for a set period, usually 5 to 10 years.
Minimum down payment
Can be as low as 10% for profit and loss statements and bank statement loans (20% for P&L cash-out, 10% for bank statement cash-out). DSCR loans start at 15% down (20% for DSCR cash-out).
Minimum credit score
Down to 640
Pros
- No ratio DSCR options
- Loan amounts up to $6M
- Asset depletion options up to 80% LTV for purchase or refinance
- Deep non-QM product set and national origination capability
- Competitive home loan options for self-employed, investors, and foreign nationals
- Ultra-flexible terms adapted to each borrower’s unique financial profile
- Concierge-level customer service: professional, communicative, fast, and reliable.
Cons
- Some loan programs are not available in every state (yet!)
Cohen Financial Group
Loan types offered
- 12- and 24-month bank statement loans
- DSCR (Debt-Service Coverage Ratio) investor loans
- Asset depletion programs
- Interest-only and alternative income options
Pros
- Proven to be able to handle complex and challenging loan transactions effectively.
Cons
- Reviews have reported that they can be unresponsive at times
A&D Mortgage LLC
Loan types offered
- 12/24 Month Bank Statement
- 1 Year + 2 Year P&L (Profit & Loss)
- 1 Year or 2 Year Full Doc Non-QM
- 1099 Contractor Income Program
- WVOE (Written Verification of Employment) Non-Tax Return Program
- Asset Utilization (Asset Depletion)
- DSCR (Debt Service Coverage Ratio) Loans
- ITIN / Foreign-National Non-QM Program
Pros
- Responsive communication.
- Strong experience with complex or non-traditional loan files
Cons
- Delays in closing.
- Issues with autopay and fee accountability
Prosperity Bank
Loan types offered
- Jumbo loans
- Bridge loans
Pros
- Some branches are reported to have good local customer service
Cons
- Low customer satisfaction rating based on review sites
- Unnecessary charges.
Insignia Mortgage
Loan types offered
- No Tax Return & Stated Income Loan Products
- Interest-Only & Fixed Rate Jumbo Loans
- Foreign National Program
- Bridge / Fix & Flip Financing
- SFR 1-4 Investment Property Loans
- Multi-Family & Commercial Loans
Pros
- Strong industry recognition and track record (since 2010)
- Professional and responsive.
Cons
- Not accredited by the Better Business Bureau
Acra Lending
Loan types offered
- Bank Statement Loans
- Jumbo Loans
- DSCR Loans
- 1099 Only
- ATR-In-Full
- Foreign National Loans
Pros
- Non-QM specialization.
- Accepts lower credit scores and recent credit events compared to other lenders.
Cons
- Brokers have reported long processing times on submitted loans.
- Some borrowers have reported inconsistent communication (changing demands, long response times).
How To Choose the Best Non-QM Mortgage Lenders
Finding the right non-QM mortgage lender can make all the difference in securing financing that truly fits your unique situation. Here are the key steps to follow when choosing the best non-QM mortgage lender for your needs:
- Verify lender reliability: Before moving forward with any lender, confirm they’re properly licensed to operate in your state and have a proven track record with other borrowers like you. Check reviews, testimonials, and regulatory compliance to ensure you’re working with a reputable, legitimate institution.
- Evaluate flexibility and product variety: Top non-QM lenders stand out for offering multiple qualification paths. Check their range of loan products designed for different borrower types, including their bank statement, asset depletion, and profit-and-loss options. The best lenders design solutions around your income profile and goals..
- Assess underwriting efficiency and borrower experience: Strong non-QM lenders rely on seasoned in-house underwriters who use a common-sense approach to evaluate creditworthiness and make exceptions when warranted. Just as importantly, they maintain clear, responsive communication throughout the process and move loans from application to closing quickly.
- Compare total loan costs and upfront requirements: Request a detailed breakdown of rates, origination fees, closing costs, and down payment expectations to accurately compare lenders. The best companies are fully transparent about all costs, helping you make an informed, side-by-side assessment before committing.
How To Qualify for a Non-QM Loan
Qualification requirements can differ among lenders depending on the non-QM loan type and other factors. But there are some general steps you can follow to make sure you can secure non-QM financing:
Step 1: Assess Your Financial Situation and Determine Your Needs
Before reaching out to lenders, assess your needs and narrow down the list of homes in your price range. This will reveal which non-QM product best suits your strategy, whether it’s a DSCR loan to finance rentals, a bank statement loan to account for a diverse income profile, or a jumbo loan to access higher-end properties.
Step 2: Gather Alternative Income Documentation
The specific documents you’ll need depend on your chosen loan program and circumstances. Regardless of your chosen loan type, however, it’s often best to prepare 12-24 months of personal or business bank statements showing consistent deposits.
Self-employed applicants may need CPA-prepared profit and loss statements. If you’re a real estate investor looking to leverage a DSCR loan, you should also gather rental agreements and property income records. Those qualifying through assets will need comprehensive proof of liquid holdings such as investment accounts, savings, and retirement funds.
At Defy Mortgage, we accept a wide range of alternative income sources, including:
- Personal and business bank statements
- Profit & Loss (P&L statements
- 1099 income documentation
- Asset documentation (investment, savings, or brokerage account statements)
- Retirement, trust, or dividend account statements
- Rental income records
- Foreign income or international asset documentation for non-US residents
Step 3: Ensure You Meet the Minimum Requirements
Non-QM loans offer more flexibility than conventional mortgages, but you’ll still need to meet certain baseline criteria. Minimum credit score requirements typically start in the mid-600s, but your specific credit requirements will vary based on the lender and loan program you choose.
Expect to make a down payment between 10-30% depending on your credit profile and the lender’s requirements. A higher down payment demonstrates financial commitment and often secures better loan terms, including lower interest rates, higher loan amounts, and exemption from private mortgage insurance.
The debt-to-income (DTI) ratio requirements can sometimes be more lenient with non-QM loans. Some programs allow DTI ratios between 45-55%, compared to the standard 43% cap on qualified mortgages. Some non-QM programs, particularly DSCR loans, don’t consider your personal DTI at all, instead focusing solely on the property’s income potential.
Step 4: Shop Around for Lenders
Don’t settle for the first lender you find. Reach out to multiple non-QM specialists early in your journey to compare their specific qualification requirements, loan programs, interest rates, and fee structures. Prioritize lenders with proven expertise in your particular situation, whether that’s self-employment, real estate investing, or asset-based lending.
Once you’ve identified the best non-qualified mortgage lenders, pursue pre-approval before you start seriously house hunting. Pre-approval involves submitting your financial documentation for preliminary underwriting review, giving you a clear picture of how much you can borrow and what loan terms you qualify for. This strengthens your position as a buyer, shows sellers you’re serious and financially capable, and helps you move quickly when you find the right property. Pre-approval also identifies any documentation gaps or qualification issues you can address before making an offer.
Step 5: Complete Your Application
After selecting your lender and securing pre-approval, you’ll complete the full application for your chosen property. Be thorough and responsive throughout this process. Incomplete or delayed documentation is one of the most common reasons for loan delays or denials.
Bank statements, rental agreements for DSCR loans, and proof of assets are particularly crucial because they help underwriters verify your income and assess your ability to repay the loan. The more organized and complete your documentation, the smoother and faster your approval process will be. Stay in close communication with your loan officer, respond promptly to any requests for additional information, and keep all parties informed as you move toward closing.
Key Takeaways
The top non-QM mortgage lenders give real estate investors, self-employed professionals, and other non-traditional earners access to flexible financing that traditional banks often can’t provide. This is particularly advantageous for real estate investors looking to expand their portfolios quickly and efficiently.
Remember that the best non-QM mortgage lenders provide clear communication, responsive service, and multiple qualifying pathways for diverse investment goals.
If you’ve been looking for a partner who understands all the nuances of real estate investing for those with unconventional incomes, look no further than Defy Mortgage. Our Mortgage Consultants can help you build a custom strategy that accounts for your complete financial picture. With our speed, flexibility, and the level of detail we apply to personal service, we make closing on your next investment property faster, simpler, and perfectly tailored to be just the loan you need. Ready to get started? Schedule an appointment on our site, email us at team@defymortgage.com or give us a call at (615) 622-1032.
And if you’re a mortgage broker, Defy TPO gives you access to the same elite lineup of non-QM products to serve clients overlooked by conventional lenders. Partner with us to close faster, qualify more borrowers, and stand out in today’s competitive non-QM market. Curious about how it works? Send us your trickiest pricing scenarios and we’ll show you. Alternatively, you can check out our AI Pricer to get a quick quote.
Frequently Asked Questions
What is a Non-QM Mortgage?
A Non-QM (non-qualified mortgage) is a home loan that doesn’t meet the standard qualified-mortgage rules set by the Consumer Financial Protection Bureau (CFPB). These rules are necessary for Fannie Mae and Freddie Mac to guarantee the loan. Non-QM lenders can use alternative underwriting to approve borrowers. These can include bank statements, profit & loss statements, or rental income.
Who Are the Best Candidates for Non-QM Loans
Non-QM loans are best for borrowers without a traditional, steady W-2 income, such as:
- Self-employed workers
- Independent contractors
- Hourly wage earners
- Retirees
- Business owners
- Real estate investors
- Foreign nationals
- Those with irregular pay
What are the Benefits of Non-QM Loans?
Non-QM loans provide flexibility and options for borrowers who don’t meet traditional mortgage rules. These mortgage loans enable more paths to approval with:
- Alternative income documentation.
- Approval with lower credit scores.
- More flexible loan structures, such as interest-only.
What are the best Non-QM options for commission-based employees without steady paychecks?
Bank statement loans and self-employed mortgage programs let you qualify based on your deposits or profit & loss statements instead of traditional pay stubs.
What are the best Non-QM options for real estate investors?
The range of investment property loans available to investors encompasses essentially every type of real estate investment strategy. Defy Mortgage offers several, including:
- DSCR (Debt Service Coverage Ratio) loan: Qualifies you based on the cash flow of the property rather than your salary. Up to 85% LTV for DSCR > 1.000 and 740+ FICO (Up to 80% for DSCR cash-out refinance). No-ratio options available.
- Bank statement loan: Use business or personal bank statements to directly prove the amount of income you’re receiving. Up to 90% LTV for borrowers with 700+ FICO.
- Asset depletion loan: Qualify using the value of your liquid assets, such as savings, retirement, and investment accounts. Up to 80% of the value of near-liquid accounts can be used (70% for retirement accounts, 50% if under retirement age). Up to 80% LTV, loan amounts up to $6M.
P&L loan: Use business profit-and-loss statements to serve as qualifying income. Up to 90% LTV, loan amounts up to $6M.
