Questions about non-QM mortgages, answered.

Yes — and this is exactly the problem non-QM loans solve. Conventional lenders use your IRS-reported net income to calculate your debt-to-income ratio. If your write-offs bring that number down significantly, you won't qualify — even if your actual cash flow is strong. Non-QM programs like bank statement loans and P&L loans look at your real deposits and revenue instead of your taxable income. You can qualify on what you actually earn.

Self-employed borrowers typically qualify through one of three alternative documentation methods: bank statement loans (12–24 months of deposits used to calculate income), P&L loans (a CPA-prepared profit and loss statement), or 1099-only loans (for independent contractors). None of these require tax returns. The program that fits best depends on how your income flows and how it's structured.

This is one of the most common situations we see. Many profitable businesses show a net loss on paper after deductions, depreciation, and write-offs — which makes it impossible to qualify conventionally. Bank statement and P&L programs bypass tax returns entirely and qualify you based on actual cash flow. Your reported loss doesn't disqualify you.

No. Non-QM refers to the documentation method used to qualify — not the loan's structure or the borrower's risk profile. Many non-QM borrowers are high-income, low-risk borrowers who simply have non-traditional income. The programs offered through TaxFlex™ are fully amortizing, fixed or adjustable rate loans from established lenders — not the exotic or interest-only products associated with the 2008 era.

Yes. Bank statement loans, P&L loans, 1099-only loans, asset qualifier, and DSCR programs all qualify without tax returns. The one exception is our 1-Year Tax Return program, which uses a single year of returns rather than the standard two — useful for borrowers whose most recent year reflects stronger income.

Yes — and most of our clients have been declined by a conventional lender before finding us. A bank denial typically means you don't qualify based on tax return income. It says nothing about whether you qualify on bank statements, P&L, or assets. We review your scenario and identify which non-QM program fits, if any.

Yes. A DSCR (Debt Service Coverage Ratio) loan qualifies based entirely on the cash flow of the investment property — not your personal income. If the property's rental income covers the mortgage payment, you qualify. No W2s, no tax returns, no employment history required. It's designed for real estate investors who want to keep their portfolio separate from their personal finances.

Yes. An asset qualifier loan lets you use liquid assets — savings accounts, brokerage accounts, retirement accounts, or trust assets — as the basis for qualification instead of income documentation. Your total eligible assets are divided by the loan term to calculate a qualifying income figure. This is ideal for retirees or high-net-worth borrowers who hold significant assets but prefer not to document income.

Most programs require a minimum 620 credit score. Higher scores unlock better rates and lower down payment requirements. Jumbo non-QM loans and higher LTV scenarios may require 660 or higher depending on the lender and program.

Our programs go up to $3 million for standard non-QM loans, with jumbo non-QM available above conforming limits. The amount you can borrow depends on your income documentation, credit score, loan-to-value ratio, and the specific program.

Most programs require 10–20% down for a purchase. The exact requirement depends on the program, credit score, loan amount, and property type. Some higher-LTV options are available for strong credit profiles.

Most TaxFlex™ loans close in 20–30 days from application — comparable to conventional loan timelines. The process moves fastest when documents are organized and submitted promptly. Refinances and investment purchases often move faster than purchases with contingencies.

No. We don't pull your credit at the inquiry or quiz stage. A hard credit pull only happens when you formally submit a loan application and authorize it in writing. Everything before that — the quiz, the consultation, the program review — has zero impact on your score.

It depends on your program. Bank statement: 12–24 months of personal or business statements. P&L: a CPA-prepared profit and loss statement (12 or 24 months). 1099: two years of 1099 forms. Asset qualifier: 3 months of asset statements. DSCR: lease agreement or market rent analysis. In all cases, you'll also need a government-issued ID, purchase contract (if applicable), and homeowners insurance.

No. While most of our programs were built for self-employed borrowers, some — like the asset qualifier and DSCR — are also well-suited for retirees, high-net-worth individuals, and real estate investors regardless of employment type.

Yes, typically. Non-QM loans carry slightly higher rates than conventional loans because they don't conform to agency guidelines. The difference varies by program, credit score, and market conditions. For borrowers who can't qualify conventionally, the rate premium is often well worth the ability to purchase or refinance — and many borrowers refinance into a conventional loan once their documentation situation improves.

Some non-QM programs include a prepayment penalty — typically a 3-year or 5-year step-down structure where the penalty decreases each year. This varies by program and lender. All prepayment terms are disclosed clearly before you proceed, and not all programs carry a penalty.

Most programs accept single-family homes, condos, townhomes, and 2–4 unit properties. Investment properties and certain non-warrantable condos may also be eligible depending on the program. Commercial real estate is not eligible through TaxFlex™.

TaxFlex™ by Best Suited Mortgage is currently licensed in Texas. If you're purchasing or refinancing a property outside of Texas, reach out and we'll let you know if we can assist or refer you to a trusted partner.