Alternative Documentation Loans

Non-QM Loans
Homeownership Without Traditional Tax Returns

Non-QM stands for Non-Qualified Mortgage — a loan that does not follow the strict Qualified Mortgage (QM) rules most conventional lenders use. QM loans require standard income docs like W-2s and tax returns. Non-QM exists because many borrowers — especially self-employed professionals and business owners — have strong cash flow and a clear ability to repay, but their tax returns do not tell the full story. These programs use alternative documentation, such as bank statements, to qualify you based on how you actually earn and spend.

Get Pre-Approved

No Tax Returns

Bank Statements OK

Self-Employed Welcome

Why Non-QM Loans?

Traditional mortgages require W-2s and tax returns, leaving many qualified borrowers behind. Non-QM loans use alternative documentation like bank statements, asset depletion, or 1099s to verify your ability to repay. Perfect for self-employed professionals, business owners, and those with complex income structures.

Alternative Documentation

Use bank statements, 1099s, or asset depletion instead of tax returns

Flexible Guidelines

More lenient debt-to-income ratios and credit requirements

Realistic Income Assessment

We look at actual cash flow, not just taxable income

Who Qualifies?

Self-employed business owners

1099 contractors and freelancers

W-2 employees using employer verification

Real estate investors

Retirees with assets

Gig economy workers

Entrepreneurs with write-offs

Non-QM Loan Programs

Multiple options to verify income and qualify for a mortgage

Bank Statement Loans

10-20%

Use 12-24 months of personal or business bank statements instead of tax returns.

No tax returns required
Personal or business accounts
Up to $3 million loan amounts
Primary, second, or investment

1099 Income Loans

10-15%

Qualify using 1099 forms and bank deposits. Perfect for contractors and freelancers.

Use 1099s as income proof
No tax returns needed
2-year 1099 history
Flexible credit guidelines

Asset Depletion

20-30%

Qualify based on liquid assets rather than income. Ideal for retirees and investors.

No employment required
Use retirement accounts
Divide assets by loan term
High net worth borrowers

DSCR Loans

15-25%

Debt Service Coverage Ratio loans based on property cash flow. Great for investors.

No personal income docs
Qualify by rental income
Close in LLC name
Unlimited properties

WVOE Loans

20%

Qualify with a Written Verification of Employment (Fannie Mae Form 1005) instead of a traditional tax-return income calc. Built for W-2 employees with 2+ years at the same employer.

Fannie Mae Form 1005
Salary and base pay only
680+ FICO typical
Primary residence only

In-House Lending

How We Do Non-QM Loans In-House Through Luminate Bank

Unlike brokers who shop Non-QM files across outside lenders, The 2 Mortgage Guys originate Non-QM loans in-house through Luminate Bank. That means your bank statement, 1099, asset depletion, DSCR, or WVOE file is underwritten by the same institution that will fund your loan — not handed off to a third party after you apply.

Ryan Minick and Steve DeLon work directly with Luminate Bank's Non-QM guidelines and underwriting team. You get clearer expectations, fewer surprises mid-process, and a single point of contact from pre-approval through closing.

Why In-House Matters

Direct Underwriting Access

We know Luminate Bank's Non-QM overlays and can structure your file the way their underwriters expect from day one.

Faster, Clearer Decisions

No waiting on an outside investor to accept or decline your scenario — decisions stay inside Luminate Bank.

One Team, One Lender

From first call to funding, you work with The 2 Mortgage Guys and Luminate Bank — not a revolving door of wholesale outlets.

Full Non-QM Menu

Bank statement, 1099, asset depletion, DSCR, and WVOE programs are available in-house, so we match the right option without shopping your file around.

2MG Daily

Latest Non-QM Insights

Recent articles from our blog covering Non-QM loans, bank statement financing, and self-employed options.

Self-Employed? We Have You Covered.

Do not let tax write-offs stop you from buying a home. Explore bank statement loan options today.

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