Self-employed and Non-QM options

Are you self-employed, a business owner, or paid through more than a traditional W-2?

Mortgage qualification may require a closer look at how your income is earned and documented. A lender may ask for items such as personal and business tax returns, IRS transcripts, bank statements, profit-and-loss information, or documentation about your business. The exact list depends on the lender, your business structure, how long you have been self-employed, and the income being used to qualify. Keep in mind that business revenue is not automatically the same as qualifying personal income.

You may also hear the term “Non-QM,” meaning a mortgage that does not meet the requirements for a Qualified Mortgage. Non-QM is not a shortcut, and it is not a promise of approval. Mortgage rules still require an ability-to-repay determination, and lenders review income, assets, debts, credit, property, and other applicable factors. Non-QM programs, if available, can have different documentation, pricing, and eligibility requirements.

If your income is less traditional, start by organizing complete, current records and asking a licensed mortgage professional which documentation applies to your situation. Do not send sensitive financial information through an unapproved form or social-media message. A conversation can help you understand possible paths, but only a lender’s review can determine whether any loan is available.

Important notes

• Educational content only; not a commitment to lend, loan estimate, approval, or rate quote.
• No outcome, approval, terms, closing date, or qualification is guaranteed. A lender must complete its own review, including applicable ability-to-repay requirements.