Self-Employed? How Alternative Mortgage Options Could Help
Do you own a business and pay yourself differently than a traditional W-2 employee?
Does your income come from multiple sources rather than one regular paycheck?
Do you keep a significant amount of your money in savings, retirement, or investment accounts?
Are you building a rental portfolio—or looking to purchase your next investment property?
If any of these sounds like you, Florida Mortgage Firm has options that look beyond traditional income documentation.
Because while your finances may make perfect sense to you, they can sometimes take a little more explaining on paper.
That’s where it’s worth knowing about Non-QM mortgages.
Non-QM isn’t one specific type of loan. It’s a category of mortgage programs that may offer different ways of documenting income or evaluating certain financial situations.
So, What Does Non-QM Actually Mean?
Non-QM stands for Non-Qualified Mortgage, but the name can be a little misleading. It doesn’t mean the borrower isn’t qualified.
Instead, these loans fall outside certain Qualified Mortgage guidelines and may allow for alternative ways to document income or evaluate a borrower’s financial picture.
Depending on the program, that could include:
Bank Statement Loans:
For certain self-employed borrowers, qualifying income may be calculated using eligible deposits shown on personal or business bank statements rather than relying solely on traditional income documentation.
Asset Depletion Loans:
Have substantial eligible assets? Certain programs may calculate qualifying income based on those assets rather than relying solely on employment income.
DSCR Loans:
Designed for investment properties, DSCR programs may evaluate the property’s qualifying rental income in relation to its housing expenses instead of using traditional personal income documentation.
Borrowers still have to meet the requirements of the specific program, which can include factors such as credit, assets, reserves, down payment or equity, and property eligibility.
The difference is that there may be more than one way to document the financial picture.
Maybe Your Scenario Just Needs a Different Conversation
If your finances don’t fit neatly into the traditional mortgage mold, figuring out which options apply to your situation can get complicated.
That’s our job.
At Florida Mortgage Firm, we can look at your individual scenario, talk through how your income and assets are structured, and help determine which available mortgage options may make sense for you.
Have a scenario you want us to look at? Click the button below to get connected with one of our local loan officers.