Self employed Non-QM Home Loan Solutions

Loan Types
Nontraditional Mortgages
Non-QM home loans allow self-employed borrowers to use the traditional income and expense approach to qualify for a mortgage by providing proof of income, expenses and assets.
Published on
July 27, 2023
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Self-employed borrowers are often left out of the home loan market due to stricter qualification requirements. However, there are a variety of non-QM home loan options available for self-employed borrowers.

Self-employed Non-QM Options
  • 1099 home loans
  • ITIN secure mortgages
  • Asset depletion mortgages
  • Bank statement mortgages
Self employed borrowers should be able to qualify for Non-QM Loans with these options.

Self employed borrowers should be able to qualify for Non-QM Loans with these options.

  • Self Employment Income Documentation: If you are self employed, there are many sources of documentation that can be used to verify your income. However, the most common ones include 1099s and W2s.
  • Personal Guarantee: A personal guarantee allows a borrower's family member or friend to guarantee their loan in case they default on payments
Qualifying for self employed Non-QM home loan solutions
  • You must be self-employed.
  • You can't have a W-2 job.
  • You will need 2 years of tax returns and financial statements from your business, including an accounting summary and balance sheet.
  • You'll also need to provide a business plan for your company that includes:
  • A description of your industry or market niche;
  • How much money you expect to make each year
Story of the Non-QM Mortgage

A non-QM mortgage is a loan that's not backed by the government. It's also known as a conventional mortgage, which means it's not guaranteed by Fannie Mae or Freddie Mac. A QM loan stands for "qualified mortgage," and it's backed by either of those two organizations.

A non-QM home loan can be more difficult to qualify for than a QM home loan because it requires stricter underwriting standards, but there are still options out there if you're self-employed.

ITIN Home Loans

An ITIN is an Individual Taxpayer Identification Number, which is used by foreign nationals and others who have federal tax filing or payment obligations, but are not eligible for a Social Security number (SSN). If you do not have a Social Security number, it may be possible for you to obtain one through an ITIN home loan.

1099 Home Loans

1099 home loans are available for self employed borrowers who do not have W-2 income. Borrowers can qualify by using year-to-date receipts and invoices to prove their business income. Since this is a self-employed loan, there's no employer to confirm employment history or credit score, so it's important to have at least two years of tax returns showing consistent income (or an audited financial statement).

Asset Depletion Home Loans

Asset depletion home loans are a type of self employed mortgage, which allows you to use your assets as collateral. These mortgages are ideal for borrowers who have large amounts of cash or other assets that they can use as security on their loan application.

In order to qualify for an asset depletion home loan, borrowers must first prove that they have enough money in their bank account(s) and other investments (such as stocks and bonds). They must also provide financial statements showing their income over the past 12 months, including any rental properties they own or have owned during this time period.

Bank Statement Home Loans

Bank Statement Home Loans are a great option for self employed borrowers. If you're looking to buy a home, but your income isn't steady or you have little credit history, this may be the right loan for you. With Bank Statement Home Loans, borrowers can qualify based on their bank statements and other documents that show their ability to make payments on time each month.

Bank Statement Home Loans are available for non-QM borrowers as well as self-employed individuals who do not meet the requirements of traditional underwriting guidelines (usually due to lack of documentation). The program allows lenders more flexibility in determining eligibility by focusing primarily on how much money comes into an applicant's account each month rather than where it comes from or how long they have had their current job

There are a variety of non-QM loan programs available for self-employed borrowers.

There are a variety of non-QM loan programs available for self-employed borrowers. Non-QM home loans allow self-employed borrowers to use the traditional income and expense approach to qualify for a mortgage by providing proof of income, expenses and assets.


In conclusion, there are many options available for self-employed borrowers who want to get a mortgage. We hope this article has helped you understand the ins and outs of Non-QM Loans and how they work. If you have any questions or comments please feel free to leave them below!

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