Non-QM loans help you qualify using alternative documentation and common-sense underwriting. In El Paso, the most used options include Bank Statement loans, Asset-Qualifier loans, DSCR loans for investors, 1099 Home Loans, Profit & Loss (P&L) Statement Loans, and Foreign National mortgages. Each program evaluates your ability to repay through cash flow, assets, or property income so you can move forward with clarity and confidence.
When you have substantial liquid assets but irregular or low-documented income, Asset-Qualifier loans consider savings, brokerage, and retirement accounts as an income equivalent over a set term. After standard haircuts and seasoning, your assets help you qualify without full tax returns. This is ideal if you’ve built wealth and want a streamlined, lower-documentation route.
If you’re self-employed and aggressive write-offs reduce your taxable income, a Bank Statement loan uses 12–24 months of personal or business statements to calculate qualifying income. Lenders average eligible deposits (and apply reasonable expense factors for business accounts) to reflect your real cash flow. This makes financing accessible to contractors, creatives, consultants, and small business owners across El Paso County.
Debt Service Coverage Ratio (DSCR) loans qualify primarily on a property’s rental income versus the total monthly payment (PITIA). Many lenders look for a DSCR of 1.00–1.25+. Because underwriting centers on property cash flow, not your personal income,
DSCR can speed approvals for single-family rentals, condos, and 2–4 units near UTEP, the Westside, East El Paso, and throughout Far West Texas.
Independent contractors and gig workers who receive 1099s can qualify using one to two years of 1099 forms (and sometimes YTD documentation) instead of complete tax returns. Your approval aligns with how you are actually paid, making this a smart option for rideshare drivers, tradespeople, tech freelancers, and commission-based professionals.
If your books are clean, a recent profit and loss statement (P&L) prepared by a CPA, often supported by bank statements, can verify revenue and expenses instead of full returns. These loans highlight actual business performance and simplify income documentation for entrepreneurs and small-business owners.
International buyers without U.S. credit or a Social Security number can purchase second homes or investment properties in El Paso using passports/visas, international credit references, and verified foreign income or assets. Expect higher down payments and reserves, but reliable programs exist for well-qualified global buyers.
620–680+ (stronger files receive better pricing).
10%–30% depending on program, occupancy, and risk.
3–12 months of PITIA is typical; more for jumbo or investor loans.
Often up to ~50%; DSCR-based approval is based on property cash flow instead of DTI.
12–24 months of bank statements, verifiable assets, P&L statements, 1099s, leases/appraisals for DSCR, or evidence of foreign income/assets.
Single-family, townhomes, condos, and 2–4 units; many programs allow second homes and investment properties.
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Q: Are Non-QM loans “subprime”?
A: No. “Non-QM” simply means the loan doesn’t meet agency Qualified Mortgage definitions. Lenders still verify your ability to repay—often through bank statements, assets, or property income.
Q: Can first-time buyers use Non-QM programs?
A: Yes. If your income is unconventional (self-employed, 1099, seasonal), Non-QM options can provide a practical path to purchase with competitive terms for strong files.
Q: Are Non-QM rates higher than conventional?
A: Often slightly higher due to flexible documentation. Larger down payments, solid reserves, and strong credit improve pricing.
Q: Will I face a prepayment penalty?
A: Owner-occupied Non-QM loans typically avoid them; some investor/DSCR products include a limited prepay period. Your Loan Estimate will outline terms before you commit.
You deserve a mortgage that understands how you really earn. Whether you prefer bank statements, asset-based qualifying, a DSCR investor route, 1099 income, a clean P&L, or a Foreign National program, you have options in El Paso. Connect with a local Non-QM specialist today at (877) 280-4833 to compare scenarios, select the structure that aligns with your goals, and move forward with confidence.
