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NMLS#: 2526130 (Company) · 513013 (Adam Styer)
A non-QM loan is a mortgage that falls outside the CFPB's Qualified Mortgage rule — created by Dodd-Frank in 2014. It is not subprime. It's how self-employed borrowers, real estate investors, retirees, and high-net-worth clients qualify when traditional W-2 underwriting can't see their real income. Adam Styer (NMLS #513013) closes non-QM loans across Texas with access to 40+ wholesale lenders and 8+ dedicated non-QM investors.
What Non-QM Means (and What It Doesn't)
"Non-QM" stands for non-qualified mortgage. It's a regulatory category, not a quality grade. After the 2008 crisis, Dodd-Frank gave the CFPB authority to define what makes a mortgage "qualified" — meaning the lender gets safe-harbor protection from ability-to-repay lawsuits. The rule went into effect January 2014. Loans that don't fit inside that box are non-QM.
That box is narrow. It assumes a W-2 borrower with two years of clean tax returns, a debt-to-income ratio under 43%, no interest-only or balloon features, and a paper trail that fits a Fannie Mae or Freddie Mac checklist. That definition leaves out a huge segment of qualified borrowers — anyone whose income shows up on a Schedule C, a K-1, a brokerage statement, or a stack of rental property leases instead of a W-2.
Non-QM loans solve that problem by using alternative documentation. The ability-to-repay rule still applies — lenders verify income, just not with a 1040. As of 2025, non-QM represents roughly 5% of total origination volume, growing every year as the self-employed and investor population expands.
Non-QM is not subprime. Most of Adam's non-QM clients have 700+ FICO, six-figure liquid reserves, and significant net worth. They simply don't have a W-2 telling that story.
The Non-QM Programs Adam Originates
Each program solves a different documentation problem. Click into the one that matches your scenario — or call and we'll figure out which fits.
DSCR Loans
For real estate investors. Qualifies on the property's rental income — gross rent divided by PITIA. Hit 1.0 and you're in. No personal income, no tax returns, no DTI calculation. Each property stands on its own cash flow, so there's no ceiling on how many you can finance. Rates run roughly 6.12%–6.37% as of May 2026 (HomeAbroad data) — about 0.50%–1.50% above conventional. Austin DSCR guide →
Bank Statement Loans
For self-employed borrowers whose tax returns understate real income. The lender averages 12 or 24 months of personal or business bank deposits, applies an expense ratio (typically 50% on business accounts, 0% on personal), and that becomes your qualifying income. No 1040s. No 4506-C. Works for primary residence, second home, or investment.
Self-Employed P&L
Closely related to bank statement, but driven by a CPA-prepared profit and loss statement instead of bank deposits. Useful when deposit patterns are messy (multiple accounts, frequent transfers, large pass-through expenses) but the books are clean. Some lenders accept a 12-month P&L with two months of bank statements as backup. Self-employed mortgage guide →
Asset Depletion / High-Net-Worth
For retirees, career-transitioners, and HNW borrowers with significant liquid assets but limited W-2 or 1099 income. The lender takes eligible assets — checking, savings, brokerage, typically 70% of retirement — divides by the loan term in months, and that's qualifying income. $1.5M in assets divided by 360 months equals $4,167/month qualifying income, with no employment required.
Investor Portfolio Loans
For experienced investors who've hit Fannie Mae's 10-financed-property cap or who want to bundle multiple properties under one note. Portfolio non-QM lenders write blanket loans across 5–25 properties with cross-collateralization, single underwriting, and one closing. Useful when you're scaling past what conventional will touch.
Jumbo Non-QM
For loan amounts above $1M where the borrower's documentation doesn't fit conventional jumbo guidelines. Most jumbo non-QM caps in the $3M range, with some lenders going to $5M+ for the right HNW profile. Lower rate spread than DSCR — typically 0.50%–0.75% above conventional jumbo — because LTVs are conservative and reserves are deep. Jumbo loans →
Who Non-QM Actually Serves
Forget the marketing categories. Here are four real scenarios where a conventional loan will get declined and a non-QM will close.
1. Self-Employed With Heavy Schedule C Deductions
You run a successful business. You deposit $300K into your accounts. After your CPA's deductions — mileage, home office, equipment, depreciation, retirement contributions — your taxable income on line 31 of Schedule C is $85K. A conventional lender will use the $85K and tell you you can afford a $400K house. A bank statement non-QM lender will use a 12-month deposit average and qualify you for the actual house you're trying to buy. Same income. Different math.
2. Investor Bumping the 10-Property Cap
Fannie Mae limits financed properties to 10 per borrower. You're at 8. Your DTI on the 9th deal is technically fine, but you can already see the cap coming. DSCR doesn't count personal DTI and has no property limit — your 9th, 12th, and 20th rental all qualify on their own cash flow. Many investors switch to DSCR around property #5 to preserve their conventional allotment for the deals that genuinely need it.
3. Retiree With $2M in Brokerage but No W-2
You retired at 62 with $2M in a Fidelity account and a paid-off house. You want to move from Chicago to Austin and finance the move because rates may drop and you'd rather keep your portfolio invested. Conventional lenders need pension or Social Security distributions or a long history of dividends. Asset depletion divides your $2M by 360 months and qualifies you on $5,556/month "income" — without you needing to actually pull anything from the account.
4. Recent Business Owner Without Two Years of Returns
You left your W-2 job 14 months ago to start your own consulting practice. You're profitable. You file quarterly estimates. But conventional underwriting wants a full second year on file before they'll touch your income. A bank statement loan will use those 14 months — or even just 12 — and close. You don't have to rent for another year while waiting on the IRS calendar.
How Non-QM Differs from Conventional
The differences come down to documentation, pricing, and underwriting speed. Here's the side-by-side.
| Factor | Conventional (QM) | Non-QM |
|---|---|---|
| Income docs | 2 yrs W-2s + tax returns + paystubs | Bank statements, rental income, assets, or P&L |
| Minimum FICO | 620 (FHA), 640+ (conventional) | 640 floor, 680+ for best pricing |
| Down payment | 3%–5% common, 20% to skip MI | 10%–25% depending on program |
| DTI cap | 43% (QM rule), 50% with AUS approval | Up to 55%; DSCR has no DTI |
| Rate vs. conventional | Baseline | +0.50% to +1.50% (May 2026) |
| Property limit | 10 financed properties (Fannie cap) | No cap on DSCR |
| LLC vesting | Generally not allowed | Standard on DSCR / investor programs |
| Closing speed | 25–35 days | 15–25 days (no IRS transcript wait) |
Notice the rate trade-off. Non-QM costs more in interest, but it closes the deal. For a borrower who can't qualify conventionally, that's the only comparison that matters. The rate gap also closes over time — most non-QM borrowers refinance into conventional within 2–3 years once the documentation catches up.
Why Use a Broker for Non-QM
Most non-QM programs aren't available retail. The major non-QM investors — Angel Oak, Verus Mortgage Capital, Deephaven, Acra Lending, A&D Mortgage, Newrez Smart Series, Sprout Mortgage — sell exclusively through wholesale brokers. Your retail bank can't access them. Your direct-to-consumer online lender can't access them. They're broker-only.
That matters because non-QM pricing varies wildly between investors. The same scenario — say, a 720 FICO self-employed borrower with 12 months of bank statements buying a $750K primary — might price 0.625% apart between two wholesale lenders on the same day. With 40+ wholesale relationships, Adam runs your file across 8+ non-QM investors at once. Same application, real competition.
It also matters because non-QM guidelines are inconsistent. One lender wants 12 months of statements, another wants 24. One allows P&L without bank statements, another requires both. One caps DTI at 50%, another at 55%. Matching your scenario to the lender whose guidelines actually fit it — instead of the other way around — is the entire job. A retail loan officer with one set of guidelines can only tell you yes or no. A broker with eight options can tell you which one says yes and at what price.
How It Works With Us
1. 15-Minute Strategy Call
Before you fill anything out, we get on the phone for 15 minutes. You describe your income — self-employed, investor, retired, whatever fits. I tell you which non-QM program is the right shape for it and what documentation you'll actually need. No pulled credit yet. Schedule the call →
2. Apply & Document
Standard 1003 application plus the alt-doc package for your program: 12–24 months of bank statements, AirDNA report, asset statements, P&L, or LLC operating agreement depending on the path. No tax returns required for most programs.
3. Lender Shop
I run your file across 8+ wholesale non-QM investors and bring back actual rate quotes — not estimates. You see the spread, you see the trade-offs (rate vs. down payment vs. prepay structure), and you pick. This is where the broker advantage shows up in dollars.
4. Underwrite & Close
Most non-QM files clear underwriting in 10–15 days because there's no tax return scrutiny. We close in 15–25 days from application when the appraisal cooperates. You'll have a single point of contact (me) the entire way — not a 1-800 number.
Non-QM Loan FAQ
No. A non-QM loan is a mortgage that falls outside the CFPB's Qualified Mortgage rule, created by Dodd-Frank in 2014. The QM rule defines a narrow box (W-2 income, 43% DTI cap, no interest-only or balloon features) that gives lenders safe-harbor protection from ability-to-repay lawsuits. Non-QM loans use alternative documentation — bank statements, rental income, assets — but lenders still verify your ability to repay. Most non-QM borrowers have 700+ FICO and significant net worth. It is not subprime.
Most non-QM programs have a 640 floor. 680 is the realistic minimum for competitive pricing. 700+ unlocks the best rates and lowest down payment options. A handful of programs go down to 620, but expect higher rates and 25%+ down at that level.
Yes — typically 0.50% to 1.50% above conventional as of May 2026. DSCR usually sits at the high end of that spread, jumbo non-QM at the low end. The trade-off: non-QM closes deals conventional won't. For a borrower who can't qualify conventionally, the rate premium is worth it because the alternative is no loan.
Yes. Non-QM is often a bridge — you use it to buy now, then refinance into conventional once your tax returns or DTI catch up. Most lenders want 6–12 months of seasoning before refinancing. Owner-occupied non-QM loans typically have no prepayment penalty. DSCR investor loans often carry a 3-year prepay structure you'll want to plan around before exiting.
Most don't. Bank statement loans use 12 or 24 months of deposits. DSCR loans use the property's rental income. Asset depletion uses your liquid asset base divided by the loan term. P&L-only programs use a CPA-prepared profit and loss. Skipping the tax return is the entire point — that's why these programs exist.
Most programs cap at $3M. Some jumbo non-QM lenders go to $5M+ for the right HNW borrower. Asset depletion and HNW programs reach the highest amounts because qualifying income scales with the asset base. DSCR caps around $3M per property on most programs, with portfolio loans going higher when properties are bundled.
15–25 days from application to closing when the file is clean. Non-QM is often faster than conventional because there's no 4506-C IRS transcript wait and no employment verification calls. The bottleneck is usually the appraisal.
On DSCR and investor portfolio loans, yes — LLC vesting is standard. The LLC must be formed in Texas (or registered as a foreign LLC) and the borrower personally guarantees the loan. Owner-occupied non-QM (bank statement, asset depletion for primary residence) generally cannot be vested in an LLC because of occupancy and homestead rules.
Most non-QM programs are wholesale-only. Angel Oak, Verus, Deephaven, Acra, A&D, Newrez Smart Series, and Sprout sell exclusively through brokers — your retail bank can't access them. With 40+ wholesale relationships, your file gets shopped across 8+ non-QM investors at once. Same application, real pricing competition.
Both, depending on the program. Bank statement and asset depletion loans are commonly used for primary residences. DSCR is investment-only — owner-occupied is not allowed. P&L-only and jumbo non-QM work for primary, second home, or investment depending on the lender.
★★★★★
"My CPA had me tax-optimized to the point that no bank would touch me. Adam closed a 24-month bank statement loan in 19 days. Different lender, same income — totally different answer."
Read More ReviewsRelated Programs & Resources
Already know which program fits? Jump straight to it:
- DSCR Loans — Austin TX — investor cash-flow loans, no tax returns
- DSCR Loans across Texas — out-of-state buyer plays, no-state-income-tax math
- DSCR Loans in Fredericksburg, TX — wine-country STR financing with AirDNA underwriting
- DSCR Loans in Dripping Springs — wedding-venue economy STRs
- Self-Employed Mortgage — Austin — bank statement and P&L programs
- Jumbo Loans — including jumbo non-QM for $1M+ scenarios
- Investment Property Loans — full investor program lineup
- About Adam Styer — broker background, NMLS #513013
- Mortgage Glossary — DTI, LTV, DSCR, PITIA defined
If You've Been Told No by a Bank, This Is the Door That Opens
Tell me your income situation in a 15-minute call. I'll tell you which non-QM program fits — DSCR, bank statement, asset depletion, or jumbo — and what it'll cost. No pulled credit, no application required to start.
Start Your Application Book a 15-Minute CallOr call (512) 956-6010 — Adam Styer, NMLS #513013