Non-QM Purchase Loans — Buy a Home Without Tax Returns
A Non-QM purchase loan lets you buy a home using bank statements, 1099s, a profit and loss statement, liquid assets, or rental income instead of the two years of tax returns a conventional lender demands. Minimum credit scores start at 600, purchase loan amounts run up to $4 million on select programs, and you can choose from bank statement, 1099, WVOE, asset utilization, P&L, DSCR, ITIN, foreign national, and no income verification purchase options. Here’s every program, credit score minimum, and down payment requirement side by side, so you don’t have to go hunting for the answer.
Minimum Credit
Score to Qualify
Maximum Purchase
LTV Available
Ways to Document
Your Income
Maximum Purchase
Loan Amount
Your Answer Right Here
What Is a Non-QM Purchase Loan?
A Non-QM purchase loan is a home purchase mortgage underwritten outside the standard tax-return-and-pay-stub box that most banks require. Instead of two years of tax returns, your purchase file can be built around bank statements, 1099s, a CPA-prepared profit and loss statement, liquid assets, or the rent a property is expected to collect. Minimum credit scores start at 600, purchase loan amounts run from $100,000 up to $4 million depending on the program, and condos, 2-4 unit properties, and non-warrantable buildings are eligible on most tiers.
These loans still go through full underwriting for a purchase transaction; the paperwork just changes to match how you’re actually paid. A licensed loan officer reviews your credit depth, your reserves, the property type, and the appraisal, since those pieces carry more weight once income isn’t shown on a W-2. If you’re self-employed, a landlord, retired and living off assets, or new to the country, a Non-QM purchase loan is often the fastest path to a closing that a conventional lender would slow-walk or turn down outright.
Program Requirements
Non-QM Purchase Programs, Credit Scores & Down Payments
Every Non-QM purchase loan qualifies you a different way. Here’s the minimum credit score and maximum loan-to-value (LTV) for each purchase program we place most often. Your actual terms depend on your full file, property type, and reserves.
| Program | Min. Credit Score | Max LTV / Down Payment |
|---|---|---|
| Full Doc Non-QM | 600 | Up to 90% LTV (10% down) at 700+ score |
| 1099 Only | 600 | Up to 90% LTV (10% down); 2 months of recent bank statements required |
| Written VOE (WVOE) Only | 620 | Up to 80% LTV (20% down); 70% on first-time buyers |
| Asset Utilization | 660 | Up to 80% LTV (20% down) |
| Bank Statement Loans | 600 | Up to 85% LTV (15% down) at 660+ score |
| P&L Only | 660 | Up to 80% LTV (20% down) |
| P&L Plus 3 Months Bank Statements | 660 | Up to 80% LTV (20% down) |
| One-Year Self-Employment | 660 | Up to 80% LTV (20% down) |
| Assets as Blended Income | 660 | Up to 80% LTV (20% down) |
| DSCR Loans (Investment Purchase) | None at ≤55% LTV 600 above 55% LTV |
Up to 85% LTV (15% down) |
| ITIN Loans | 660 | Up to 85% LTV (15% down) |
| Foreign National (Investment Purchase) | No FICO required | Up to 75% LTV, DSCR-based |
| No Income Verification (Primary Residence Purchase) | 640 | Up to 80% LTV (20% down) |
Guidelines reflect general program terms as of July 2026 and are not a quote or a commitment to lend. Property type, loan amount, and reserves can move what’s actually offered on your purchase.
Why This Matters
Why Buyers Choose Non-QM Purchase Loans
Most buyers who end up on a Non-QM purchase loan aren’t credit-challenged; they’re just documented differently than a W-2 employee. A business owner who writes off vehicles and equipment, a retiree drawing from a brokerage account instead of a paycheck, and a commissioned salesperson whose income swings year to year all look thin on paper at a conventional bank, even when their credit and bank balance tell a stronger story. Non-QM underwriting was built around that exact gap, and it’s grown into one of the fastest-moving corners of the purchase mortgage market as more lenders recognize how common this borrower profile has become. According to the CFPB’s home financing guidance, knowing which documents a loan actually requires before you start shopping for a home is one of the biggest factors in whether a purchase closes on time, and that’s especially true once tax returns leave the picture.
What Underwriters Actually Review
Because personal income documents step back, everything else steps forward on a purchase file. Credit typically needs two tradelines reporting for 12 or more months, or one tradeline reporting for 24 or more months with recent activity, which lines up with how Fannie Mae documents borrower assets on conventional files. Mortgage or rent history generally follows a 0x30x12 standard, meaning no late payment in the trailing twelve months, and a prior forbearance, foreclosure, short sale, or bankruptcy typically needs 24 to 48 months of seasoning behind it depending on the program and severity. Down payment and reserve funds need to be sourced and seasoned for 30 days, and reserves themselves run anywhere from zero to 12 months based on your loan amount, occupancy, and LTV. Debt-to-income can run as high as 50%, with 45% max if your LTV lands above 85%.
For Investors
DSCR Loans: Purchase Investment Property on Rental Income
A DSCR purchase loan qualifies an investment property off the income the property generates instead of your personal tax returns or pay stubs. DSCR stands for debt service coverage ratio, calculated by dividing the property’s gross rental income by its total housing payment. A ratio of 1.00 means the rent covers the mortgage; above 1.00 means it cash flows. This makes DSCR purchase loans a natural fit for landlords, short-term rental owners, and out-of-state investors building a portfolio without wanting their personal income tied to every purchase. Investment properties only, 1-4 units, are eligible on this program.
Standard Program: Credit Score & LTV Tiers
| Credit Score | Purchase | Rate/Term | Cash-Out |
|---|---|---|---|
| 720+ | 85% | 85% | 80% |
| 700+ | 80% | 80% | 75% |
| 680+ | 80% | 80% | 75% |
| 640+ | 75% | 75% | 70% |
| 620+ | 70% | 70% | 65% |
| 600+ | 65% | 65% | 60% |
Standard Program requires a minimum 1.00 DSCR ratio (1.20 above 80% LTV). Based on a representative loan amount; higher amounts adjust tiers.
Beyond the Standard Program, a handful of DSCR variations cover investors whose purchase doesn’t fit that grid. A Sub1 DSCR option accepts a ratio as low as 0.75, useful when a property doesn’t quite cash flow to a full 1.00 but still makes sense on paper. A No Ratio DSCR option skips the ratio requirement entirely and qualifies a purchase purely on credit and LTV, which is common on vacation rentals with seasonal income swings. A DSCR Fusion option blends the rental income with your liquid assets to boost an initial ratio between 0.75 and 0.99 up to a qualifying 1.15. And a Foreign National DSCR option lets non-U.S. citizens purchase investment property with no FICO score required in some cases, typically capped between 55% and 75% LTV depending on credit history and loan amount.
For Primary Residences
No Income Verification Purchase Loans for Primary Residences
A no income verification purchase loan is built for a homebuyer who can’t or doesn’t want to document income at all, no bank statements, no tax returns, no employment verification. Approval leans entirely on credit, reserves, and equity. This program is limited to a primary residence purchase, and loan amounts run from $100,000 up to $2.5 million. Only a 30-year fixed rate is offered; adjustable-rate and interest-only options are not permitted on this program, which keeps the payment predictable for the life of the loan.
Purchase Tiers
| LTV / CLTV | Min. Credit Score | Reserves |
|---|---|---|
| 80% / 80% | 720 | 9 months |
| 75% / 75% | 680 | 6 months |
| 70% / 70% | 660 | 6 months |
| 65% / 65% | 640 | 6 months |
Credit still matters here, just in a different way. Mortgage history needs to run 0x30x12, and a prior foreclosure, short sale, deed-in-lieu, or bankruptcy needs 24 months of seasoning. Assets need to be sourced and seasoned for 30 days, and a borrower must be a U.S. citizen, a permanent resident alien, or a non-permanent resident alien with established U.S. credit. Single-family homes, PUDs, condos, 2-4 units, modular, and rural homes are all eligible, though log homes and manufactured homes are not, and seller concessions up to 6% are allowed toward closing costs.
Full Picture
What Affects Your Non-QM Purchase Approval
Your income documentation type sets the program, but these four areas decide whether your purchase file clears underwriting.
- 600 minimum credit score on most programs, 640 on no income verification
- Two tradelines 12+ months, or one tradeline 24+ months with recent activity
- 0x30x12 mortgage or rent history standard on most programs
- 24 to 48 months seasoning after a foreclosure, short sale, or bankruptcy
- Primary residence, second home, and investment property all eligible
- SFR, PUD, 2-4 unit, and warrantable condos eligible on most tiers
- Non-warrantable condos are capped at a reduced LTV
- Log homes and manufactured homes are generally not eligible
- Assets sourced and seasoned for 30 days
- Reserves run 0-12 months depending on loan amount, LTV, and occupancy
- Gift funds allowed on most programs, subject to an LTV adjustment
- Seller concessions and interested-party contributions allowed
- $100,000 to $4 million purchase loan amounts, program dependent
- $2.5 million maximum on no income verification purchase loans
- 15-, 30-, and 40-year fixed terms available on most programs
- Purchase and rate/term refinances both qualify on most tiers
How It Works
How a Non-QM Purchase Loan Works
Self-employed, retired, an investor, or new to the country — we match your situation to the purchase program built for it, not the other way around.
We match your credit score, reserves, and property type against the grids above and confirm exactly what LTV and loan amount you qualify for.
A rate tied to your actual purchase file, no guesswork, with the option to lock once you’re ready to make an offer.
Most callers already know roughly what they’re looking to spend, what they earn or what a rental would collect, and what’s sitting in their accounts, so one phone call is usually enough to confirm your tier. If a bank turned you down because your tax returns didn’t reflect what you actually earn, or because the property wasn’t warrantable, that’s a sign you were talking to the wrong lender, not that your purchase is out of reach.
Related Resources
Related Mortgage Pages
These pages cover the programs most often paired with a Non-QM loan.
What Clients Say
Real Reviews From Our Clients
Here’s what a few of our clients said about working with Mortgage-World.com.
Read more from our clients: Read More Reviews →
Common Questions Answered
Common Questions About Non-QM Purchase Loans
Related programs: Profit & Loss Only Mortgage in Florida · Self-Employed Mortgage in Florida.
