Non-Qualified Mortgage Loans in Texas: Your Flexible Path to Homeownership

Texas offers a variety of Non-QM loan products to match different financial situations:

• Bank Statement Loans: Bank statement loans offer a flexible mortgage solution for self-employed borrowers, small business owners, and independent contractors who may not qualify for traditional financing. Instead of relying on tax returns or W-2s, these loans use 12–24 months of personal or business bank statements to verify income, making them ideal for those with non-traditional cash flow. Even borrowers who don’t fully own their business can qualify. Our program helps creditworthy but underserved 6self-employed professionals secure financing when conventional lenders turn them down, providing a viable path to homeownership without the strict documentation requirements of standard mortgages.
• Asset-Based Loans: The Asset Qualifier loan program enables borrowers to qualify for a mortgage using seasoned liquid assets instead of traditional income verification—ideal for retirees, self-employed individuals, and investors with strong savings but irregular income. No pay stubs, employment checks, or DTI calculations required. This loan program can be used to purchase or refinance a primary residence.
• DSCR (Debt Service Coverage Ratio) Loans: A DSCR loan is an investment property mortgage that qualifies borrowers based on the property’s rental income potential rather than personal income or employment history. Lenders calculate eligibility using the DSCR formula: net operating income (rental revenue minus expenses) divided by the annual mortgage debt. A ratio of 1.0 or higher typically indicates sufficient cash flow to cover loan payments. This makes DSCR loans ideal for real estate investors who want to finance rental properties without traditional income verification, whether for short-term rentals (Airbnb) or long-term leases.
• Foreign National Loans: A foreign national home loan is a mortgage option for non-U.S. citizens or residents buying property in America, offering flexible qualification when traditional loans aren’t an option. These loans typically require larger down payments (25-40%) and may accept foreign income or credit documentation, making them ideal for international investors, visa holders (like H-1B), or buyers with overseas assets. While interest rates are often higher than conventional mortgages, they provide a critical path to U.S. homeownership without requiring permanent residency or a Social Security Number—perfect for purchasing vacation homes or investment properties while building American credit history.
• 1099 Home Loans: 1099 Mortgage Loans provide a mortgage solution for self-employed borrowers, including freelancers, contractors, and gig economy workers, who don’t qualify under traditional lending rules. Instead of requiring tax returns, these loans allow applicants to use 1099 earnings statements to verify income, offering a flexible path to homeownership for non-W2 earners. Ideal for entrepreneurs and independent professionals, this alternative financing option bridges the gap for those underserved by conventional lenders.
• Profit & Loss Statement Loans: The Texas 1-year and 2-year Profit & Loss (P&L) Statement Loan offers flexible mortgage solutions for self-employed borrowers. Instead of traditional tax returns or W-2s, this program allows entrepreneurs, freelancers, and small business owners to qualify using their business’s P&L statements, making homeownership more accessible for those with non-traditional income. Ideal for recent startups or growing businesses, these loans help self-employed applicants leverage their current revenue rather than past tax filings, streamlining approval while accommodating the unique financial profiles of business owners.

Each of these loan types addresses specific scenarios where traditional mortgages fall short, providing Texans with alternative paths to property ownership.