Loan types
Non-QM loan types, by documentation
These are the products that qualify a borrower's own income a different way than a conventional loan does — bank deposits, a profit and loss statement, 1099s, liquid assets, or an ITIN in place of a Social Security number. Every one of them is an alternative to standard tax-return documentation, and each one fits a different reason that documentation doesn't work for a given borrower.
None of these qualify the property the way a DSCR loan does. If you're financing a rental that carries its own rent, a DSCR loan usually needs none of the income documentation these five products exist to provide — which is exactly what the comparison page below covers.
Bank Statement Loans
A bank statement loan is a non-QM mortgage that qualifies a self-employed borrower using personal or business bank deposit history in place of tax returns.
Read the full page →Profit and Loss (P&L) Only Mortgage
A profit and loss only mortgage is a non-QM product that qualifies a self-employed borrower using a CPA- or tax-preparer-prepared profit and loss statement in place of full tax returns.
Read the full page →1099 Income Mortgage
A 1099 income mortgage is a non-QM product built for independent contractors and gig-economy workers, qualifying income from 1099 forms rather than the two-year self-employment tax return averaging conventional loans require.
Read the full page →Asset Depletion Mortgage
An asset depletion mortgage is a non-QM product that qualifies a borrower using their liquid assets — savings, investments, and retirement accounts — converted into an imputed monthly income figure, rather than using earned income at all.
Read the full page →ITIN Mortgage Loans
An ITIN mortgage is a non-QM loan for borrowers who do not have a Social Security Number but do have an IRS-issued Individual Taxpayer Identification Number, used in place of an SSN for identity and credit purposes.
Read the full page →DSCR vs. Bank Statement Loans
A DSCR loan qualifies a property using its own rental income against its payment. A bank statement loan qualifies a borrower using their bank deposit history. Both are non-QM products, but they measure entirely different things.
Read the full page →Where DSCR fits in this picture
DSCR loans qualify the property, not the borrower, and sit alongside these five products as the other major branch of non-QM investor lending. The DSCR vs. bank statement loans comparison on this list covers how the two branches differ and which one an investor should reach for. For DSCR mechanics specifically, see the DSCR glossary entry and the DSCR calculator.
Still not sure which category applies to your deal? Describe the situation and see which products and lenders it actually matches, rather than starting from a product name.