The Different Types of Owner Occupied Non-QM Products

Nontraditional Mortgages
Loan Types
You are not limited to only one type of non-QM product. In fact, there are many different types of owner occupied non-QM products out there that you should consider.
Published on
April 7, 2023
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The owner occupied non-QM product was designed to help people who are looking for a way to get into real estate. It’s one of the most popular products out there because it gives you the opportunity to buy a home and own it. This is different from other types of loans because they do not require you to be the primary resident of the home in order to qualify for them. However, there are still many different types of owner occupied non-QM products out there that you should consider.

What are Owner Occupied Home Loans?

An owner occupied home loan is a mortgage on a property that the borrower intends to live in. The lender will require proof that you'll be living in the home, and they may also require confirmation from your employer or another source (like a bank statements) that you're financially able to support yourself even after taking out this loan.

ITIN Loans

ITIN loans are a special type of mortgage loan that allows non-citizens to own homes in the US, even if they do not have a social security number or tax ID. For those who qualify, ITIN loans offer the same benefits as conventional home mortgages—the ability to purchase property or refinance your existing mortgage.

In general, you can use an ITIN loan for either purchase or refinancing purposes.

Asset Depletion Home Loans

Asset Depletion Home Loans are a type of non-QM loan that can help you get a home loan with your own assets. The lender decides the amount they will lend you based on your income, savings, and assets. You don't have to have perfect credit to qualify for an Asset Depletion Loan.

An Asset Depletion Loan allows you to use your own money as collateral so you don't need any other third party guarantors like co-signers or friends with good credit histories who can cosign on the mortgage application with you. As long as the lender feels confident in its ability to collect payment from you if something goes wrong (i.e., if there is no equity left in the property), it will approve your loan request.

1099 Home Loan

1099 Home Loans are for homeowners who have self-employment income. You'll receive a 1099 instead of a W2 or paycheck, so you can use it to show that you're making enough income to afford the purchase.

The lender will use your 1099 and other documents to determine how much you can borrow. You'll need to show that the income is reliable and consistent over a period of time, such as the last two years.

Bank Statement Home Loans

This product is designed for borrowers who are ineligible or unable to provide tax returns because they have no W2 income. In order to qualify, potential borrowers can use 12 months or 24 months bank statements or 1099 earning statements in lieu of tax returns. This allows them to be considered for a mortgage even if their yearly earnings are below the FHA limits.

Full Doc Home Loans

Full Doc Program borrowers who are W-2 wage earners that are able to provide scheduled pay earning statements and tax returns per normal agency guidelines.

In most cases, you will be required to provide a copy of your last two pay stubs, as well as your most recent tax return. If you have been employed for at least two years with the same employer and receive a W-2 form each year, this should not be an issue.


We hope that you now have a better understanding of the home loans available for owner occupied non-QM.

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