Non-QM Loans in Houston
Flexible mortgage solutions for self-employed, investors, and unique financial situations.
Bank statements instead of tax returns.
Bank Statements
Qualify using 12-24 months of bank deposits
Asset Based
Use liquid assets for qualification instead of income
Foreign Nationals
No U.S. credit or SSN required for approval
What Are Non-QM Loans?
Non-Qualified Mortgage (Non-QM) loans are designed for borrowers who don't fit traditional lending guidelines. Whether you're self-employed, have unique income sources, own multiple investment properties, or are a foreign national, Non-QM loans provide flexible underwriting solutions. These loans use alternative documentation like bank statements, asset statements, or rental income to verify your ability to repay.
In Houston's diverse economy with many entrepreneurs, real estate investors, and international buyers, Non-QM loans fill a critical gap. If you're a business owner who writes off expenses and shows minimal taxable income, an investor with multiple properties, or simply have a complex financial profile, Non-QM financing can make homeownership possible when traditional loans cannot.
Non-QM Loan Requirements
Minimum Credit Score
600+ (higher scores get better rates)
Down Payment
10-20% depending on loan type and property
Documentation
Bank statements, assets, or rental income (varies)
Property Types
Primary, second home, or investment property
Loan Amounts
Up to $3 million+ for qualified borrowers
Reserves
6-12 months recommended (varies by program)
Types of Non-QM Loans We Offer
Bank Statement Loans
Use 12-24 months of bank statements to verify income. Perfect for self-employed who write off business expenses on taxes.
Asset Depletion Loans
Qualify based on liquid assets (stocks, bonds, retirement accounts). Ideal for retirees or high net worth individuals.
DSCR Loans (Investor)
Debt Service Coverage Ratio loans qualify on property's rental income, not borrower's personal income. No personal tax returns.
Foreign National Loans
Mortgages for non-U.S. citizens with no SSN or U.S. credit history required. Passport and visa accepted.
Profit & Loss Statement
Qualify using CPA-prepared P&L statements with 12-24 months of bank statements. No full tax returns needed.
No Ratio Loans
Qualify without traditional income documentation. Based entirely on credit, down payment, and reserves.
Benefits of Non-QM Loans in Houston
Frequently Asked Questions
How do bank statement loans work for self-employed borrowers?
Bank statement loans analyze your business and personal bank deposits over 12-24 months to determine income. Lenders typically use 50-75% of deposits as qualifying income, depending on business type. This allows self-employed borrowers who write off significant business expenses to qualify for higher loan amounts than they could with tax returns.
Are Non-QM loans more expensive than traditional mortgages?
Non-QM loans typically have interest rates 0.5-2% higher than conventional loans to compensate for the increased flexibility and alternative documentation. However, for borrowers who cannot qualify traditionally, the slightly higher rate is worthwhile. Many borrowers refinance to conventional after 2-3 years once they can document income traditionally.
What credit score do I need for a Non-QM loan?
Most Non-QM programs accept credit scores as low as 600. However, scores of 660+ typically receive more favorable rates and terms. Recent credit events (bankruptcy, foreclosure) may be considered with 2-3 years seasoning and strong compensating factors like higher down payment or significant reserves.
Can I use a Non-QM loan for investment properties?
Absolutely! Non-QM loans are very popular with real estate investors. DSCR (Debt Service Coverage Ratio) loans are specifically designed for investors and qualify based on the property's rental income, not your personal income. This allows you to grow your portfolio without personal income limitations.
How long does it take to close a Non-QM loan in Houston?
With all documentation ready, Non-QM loans typically close in 21-45 days. Bank statement loans usually take 30 days, while DSCR loans can close in 21 days. The timeline depends on property type, appraisal turnaround, and documentation completeness. We work to expedite the process while maintaining quality underwriting.
Ready to Explore Non-QM Financing?
Our Non-QM specialists understand unique financial situations and will find the right solution. Bank statements, assets, or rental income - we've got you covered.
Quick Facts: 600+ credit • 10-20% down • Bank statements or assets • Self-employed welcome • Investor DSCR loans • Foreign nationals • Licensed in Texas • NMLS #2701989