Non-QMLoans.com
Creative Financing Solutions
Banks Can’t Offer: Unlock Flexible Lending with Non-QM Loans and Hard Money
Perfect for Self-Employed Borrowers, Real Estate Investors,
and Anyone Who Needs a Smarter Way to Qualify Without.. 
❌ W-2 Income
❌ Credit
❌ Tax Returns
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Common Sense Qualifications
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non qm loans explainedđź’ˇ
What Is Creative Financing?
Creative financing can mean any financing solution that is not a conforming loan program or traditional financing method. Creative financing can mean different things depending on who is talking about it. For example short term loans which are commonly used for fix & flips are often referred to as hard money loans by investors and real estate flippers who also use seller financing and wraparound mortgages as creative financing real estate methods.
In
mortgage lending, loan products that do not follow traditional loan requirements are known as
Non QM Loans or
Non Conforming Loan products because they don’t conform to strict federally backed loan guidelines. These loans are instead backed by private investors who set their own lending requirements. Typically, non qm loans serve a very specific purpose.
Non QM Lenders take a common sense approach to loan requirements.
Creative Lending Programs Comparison Chart
| Loan Type | Best For | LTV | Min Fico | Cash Out Option | Qualification Method |
|---|---|---|---|---|---|
| DSCR- Debt Service Coverage Ratio |
Real Estate Investors Using Rental Income |
85% |
660 |
Yes |
DSCR - Rental Income Based-No tax Returns Required |
| Bank Statement |
Self Employed Borrowers |
90% |
680 |
Yes |
12-24 months bank statements |
| P&L Only Loan |
Business Owners |
85% |
660 |
Yes |
CPA-Prepared Profit & Loss Statement |
| 1099 and VOE Loans |
Independent Contractors |
85% |
660 |
Yes |
1099 earnings statement or verification of employment |
| No Limit Jumbo |
High Income Borrowers Financing High Value Property |
60% |
660 |
Yes |
Finance ANY loan amount-NO LIMIT on final loan amount with 40% down |
| Hard Money-No Doc Loan |
Fix and Flip Investors |
Varies |
No Min |
Yes |
Asset Based Lending-Fast Closing |
| Full Doc |
Primary Residence, Second Home, Investment |
90% |
660 |
Yes |
Full Doc |
Hard Money vs. Soft Money: What's the Difference?
Hard Money Real Estate Loans
Hard Money Use Cases:
Hard Money Loan for Fix n Flip
Most common use of hard money and used to help purchase and rehab a real estate investment project.
Hard Money Loan for Primary Residence
Rare but possible under specific circumstances especially when used for a short time while other funds or traditional financing is being aquired.
Hard Money Bridge Loans
Used to finance a new purchase while waiting to sell another property, this type of hard money loan is very common.
Hard Money Home Equity Loan
Tap into equity fast without the red tape of traditional lenders when cash is needed quickly. Instead of using cash down payment as security use your own home equity to secure hard money loans for investment and fix n flip projects.
Hard Money Lenders Near Me
We can connect you with our trusted, licensed hard money lender nationwide.
Short Term Loans
Hard money loans
are short-term real estate loans funded by private investors or institutions. They're typically asset-based loans, meaning the value of the property and your down payment are used for approval not your income as the primary qualification factor.
Since a hard money loan is based primarily on the value of the property, not your income, credit score, or debt-to-income ratio. These loans are ideal for investors needing fast closings for Fix-and-flip projects and property purchases in competitive markets.
Hard Money Loans Fund Fast which is one of the main reasons they are attractive. Instead of waiting 30-45 days for a conventional loan to close, investors can use hard money loans to close in just a few days on properties without an HOA and as fast as 10 days with an HOA.
Soft Money Explained
Soft Money vs Hard Money -this term gets thrown around quite a bit and can mean different things. In the context of real estate loans soft money is any conforming, conventional or goverment back loan program such as FHA Loans, VA Loans and Conventional Mortgages.
These mortgage loans have lower rates and some have very low down payments as low as 3% down. Soft money or conventional financing has strict qualification guidelines and properties of certain types and condition can not be purchased through traditional financing. This is why creative financing or Non-QM Loans are so important.
FHA Loans-3.5% Down Payment for primary residence only. Meant for owner occupied, first time homebuyers and borrowers who need a low down payment option with lower credit score requirements.
VA Loans- Veterans loans, these are true zero down loans with no loan limit. Fantastic loan product for our beloved Veterans!
Conventional Loans- Geared towards more seasoned borrowers with higher credit scores and larger down payments. Property condition is less strict than other soft money loan options. Down payment is typically 20% but can be as low as 3%.
Types of Non-QM Loans Available
DSCR Loans for Real Estate Investors
- Qualify based on rental income, not personal income.
- No tax returns required.
- Ideal for property investors & landlords.
- Loan Program: Elite Loan (DSCR)
Bank Statement Loans
- Use
12-24 months of bank statements to qualify.
No tax returns or W-2s needed. - Best for business owners & self-employed applicants.
- Loan Program: Elite Loan, Aspire X
Jumbo Loans – No Loan Limits
- Financing available above conforming loan limits.
- Available for primary, second home, and investment properties.
- Loan Program: No Limit Jumbo Loan
P&L Only Loans and 1099 WVOE
- Qualify Without Tax Returns
- Use 1099 earnings or P&L statements instead of full tax returns.
- Best for contractors, freelancers, and business owners.
- Loan Program: Elite Loan (1099 VOE), P&L Loan
What is a Non QM Loan?
A Non QM loan is a creative finaincing solution designed for borrowers who may not meet traditional lending guidelines. Unlike conventional loans, Non-QM loans offer alternative income documentation, higher loan limits, and specialized financing options for self-employed borrowers, real estate investors, and high-net-worth borrowers.
Why Choose a Non-QM Loan?
âś” No strict income verification requirements – Qualify using bank statements, rental income, or assets instead of W-2s and tax returns.
Who Benefits from Non QM Loans?
âś” Self-Employed Borrowers – Use bank statements, P&L statements, or 1099 income instead of tax returns.
What is a Hard Money Loan?
Creative Financing with Fast, Flexible, and Short-Term Options with a Quick approval process and asset-based lending strategy.
Bank Statement Loans
P&L Based Loans
DSCR Loans
Full Doc Loans
Frequently Asked Questions-FAQ
Do Non-QM Loans Allow Cash-Out Refinancing?
Yes! Many programs offer cash-out refinance options, ideal for home renovations, debt consolidation, or reinvestment.
What Is The Difference Between A Non-Qm And A Conventional Loan?
A Non-QM loan allows alternative income documentation and higher loan flexibility, while a conventional loan follows strict Fannie Mae & Freddie Mac guidelines.
Do Non-QM loans Require Tax Returns?
Not always! Programs like DSCR loans, Bank Statement Loans, and 1099 Loans allow borrowers to qualify without tax returns.
How Fast Can I Close On A Non-Qm Loan?
Non-QM loans typically close within 15-30 days, depending on the program and borrower documentation.
Can I Get A Non-Qm Loan With A Low Credit Score?
Possibly. Some Non-QM loans allow for lower credit scores as low as 620 but most require at least a 660, depending on the loan program.
Explore Your
Creative Lending Options
At Non-QM Loans.com, we specialize in connecting you with the right non-conforming loan products tailored to your needs. Whether you're looking for a Bank Statement Loan or a No Limit Loan, we’re here to help you navigate your financing journey.
