Non-QM Mortgage Lender — 43 States
Non-QM Loans for Self-Employed Borrowers and Real Estate Investors
Total Quality Lending is a direct non-QM lender — bank statement, DSCR, foreign national, and multi-unit investor mortgages in 43 states. We underwrite in-house, hold our paper, and close in as little as 15 days.
What is a non-QM loan?
A non-QM mortgage is a residential loan that doesn’t fit inside the Consumer Financial Protection Bureau’s Qualified Mortgage (QM) safe-harbor box. That’s not a flaw — it’s by design. The QM box was written around a W-2 borrower with two years of tax returns, a 43% DTI ceiling, and a standard 30-year fixed amortization. Most modern borrowers — entrepreneurs, real estate investors, gig workers, foreign nationals, asset-rich retirees — don’t fit.
Non-QM loans solve that mismatch. They’re still residential mortgages — fully regulated, fully Ability-to-Repay compliant under Dodd-Frank, fully documented and underwritten. They just use the income-verification method that actually matches your life: bank statements instead of tax returns, rental cash flow instead of W-2 pay stubs, eligible assets instead of W-2 income. Total Quality Lending is a direct non-QM lender — we hold the loans, underwrite in-house, and don’t broker your file to a third party.
TQL’s four non-QM program families
Four lanes — each built for a specific borrower profile. Pick the one that matches your file.
DSCR Loans
Investor mortgages that qualify on the property's rental cash flow — no personal income, W-2s, or tax returns. Short-term rental (Airbnb / VRBO) income counts.
- Max LTV
- 80%
- Min FICO
- 640
- Loan range
- $100K – $3.5M
- Occupancy
- Investment only
Prime Time (Bank Stmt + Alt Doc)
Full-doc plus six alt-doc paths — personal/business bank statements, 1099, P&L only, written VOE, asset utilization. Primary, second home, or investment.
- Max LTV
- 90%
- Min FICO
- 620
- Loan range
- $150K – $4M
- Occupancy
- Primary / 2nd / Investment
Multi-Unit DSCR (5–8 / 2–8 Mixed Use)
Single-property residential 5–8 unit buildings and mixed-use 2–8 unit buildings for experienced investors. Qualify on rental cash flow, no personal income.
- Max LTV
- 75%
- Min FICO
- 700
- Loan range
- $400K – $2M
- Investor
- Experienced only
Foreign National DSCR
Non-U.S. citizen investors — no SSN required, ITIN accepted, no U.S. tax returns, no U.S. employment history. 680+ U.S. credit OR No Credit Score path.
- Max LTV
- 75%
- Min FICO
- 680+ or none
- Loan range
- $150K – $1.5M
- Occupancy
- Investment only
Non-QM vs. conventional mortgages
The eight differences that actually matter when you’re self-employed or investing in real estate.
| Factor | Non-QM (TQL) | Conventional |
|---|---|---|
| Income docs | Bank stmts, 1099, P&L, asset utilization, rental cash flow | Personal + business tax returns, W-2s, paystubs, 4506-C |
| Maximum DTI | Up to 50% (55% w/ residual income on primary) | 43% QM safe-harbor / 50% with strict overlays |
| Property types | SFR, 2–4 unit, 5–8 unit, mixed-use, condotels, STR | SFR, 2–4 unit, warrantable condos only |
| Close speed | 15–30 days (in-house underwriting) | 30–60 days (agency overlay queues) |
| LLC / entity vesting | Allowed across DSCR products | Rarely permitted — title typically must vest to individuals |
| Foreign nationals | Eligible (Foreign National DSCR — no SSN required) | Generally not eligible |
| Airbnb / STR income | Eligible — up to 80% LTV (DSCR) and 70% LTV (FN DSCR) | Often excluded or heavily haircut |
| First-time investors | Eligible on DSCR and Prime Time (multi-unit DSCR requires experience) | Often declined or capped at lower LTV |
Who uses non-QM loans?
Four borrower profiles that drive most of the modern non-QM market — and the TQL program designed for each one.
Real estate investors
Best program: DSCR or Multi-Unit DSCR
Buying rentals — single family, 2–4 unit, condotels, multifamily, Airbnb / VRBO. You want leverage on the property, not a personal-income hurdle that limits how many doors you can own.
Self-employed business owners
Best program: Prime Time (Bank Stmt + Alt Doc)
Sole proprietors, S-corps, LLCs, 1099 contractors, gig workers, freelancers. Your tax returns show heavy deductions and your real cash flow tells a different story.
Foreign national investors
Best program: Foreign National DSCR
Non-U.S. citizens buying U.S. investment property. No SSN, no U.S. tax returns, no U.S. employment history needed. ITIN-friendly with international credit references.
Asset-rich, income-light retirees
Best program: Prime Time — Asset Utilization
Substantial liquid assets — brokerage, retirement, savings — but limited W-2 or self-employed income. Qualify on assets ÷ 84 months without drawing down accounts.
Why borrowers choose TQL for non-QM
- Direct non-QM lender — we hold the loan, not a broker pushing your file
- In-house underwriting closes deals in as little as 15 days
- Four non-QM program families under one roof — no shopping between lenders
- Self-employed, foreign national, and first-time investor friendly
- Loan amounts to $4M across Prime Time + DSCR programs
- Direct lender — Total Quality Lending, NMLS #1933377
Non-QM loans — FAQs
What is a non-QM loan?
A non-QM (non-qualified mortgage) loan is a residential mortgage that doesn't meet the Consumer Financial Protection Bureau's QM safe-harbor rules — typically because it uses an alternative income-documentation method (bank statements, 1099, P&L, asset utilization, rental cash flow) or a non-traditional product feature (interest-only, 40-year amortization). Non-QM loans are fully legal, ATR-compliant under Dodd-Frank, and underwritten — they just don't fit the agency conventional checklist.
Are non-QM loans safer than they were pre-2008?
Yes — substantially. Modern non-QM lending is governed by Ability-to-Repay (ATR) rules from Dodd-Frank that did not exist before 2008. Underwriters must verify and document a borrower's ability to repay using one of eight ATR factors. Stated-income, no-doc, and NINJA loans of the pre-2008 era are not what today's non-QM market is — and TQL does not offer them.
Is Total Quality Lending a non-QM lender?
Yes. Total Quality Lending is a direct non-QM mortgage lender — Total Quality Financial, Inc. DBA Total Quality Lending, NMLS #1933377, licensed by the California DFPI under License No 60DBO-108369. We hold our loans, underwrite in-house, and offer four non-QM program families: DSCR, Prime Time (bank stmt + alt doc), Multi-Unit DSCR, and Foreign National DSCR.
What's the rate premium on a non-QM loan?
Non-QM pricing typically runs 0.5%–1.5% higher than equivalent conventional rates, depending on FICO, LTV, doc path, and occupancy. The premium reflects investor pricing of non-agency paper, not borrower risk per se. For self-employed borrowers, the premium is often offset by qualifying for a loan at all — or qualifying for a higher loan amount than conventional DTI math would allow.
What property types are eligible for non-QM loans at TQL?
Single-family (attached and detached), 2–4 unit residential, 5–8 unit residential (Multi-Unit DSCR), 2–8 unit mixed-use, condominiums, condo-hotels, and short-term rentals (Airbnb / VRBO / FlipKey) — all are eligible across the four program families. Investor-occupancy carve-outs apply in select jurisdictions; multi-unit DSCR is ineligible in IL and NY.
Are non-QM loans regulated by the CFPB?
Yes. Non-QM loans are residential mortgages and are fully regulated under TILA, RESPA, the CFPB's Ability-to-Repay rule, and applicable state laws. TQL is regulated by the California DFPI (License No 60DBO-108369) and is registered in the Nationwide Multistate Licensing System (NMLS #1933377). We comply with the same disclosure, fee, and underwriting documentation requirements as any other mortgage lender.
The right non-QM lender is the one that closes the deal
Direct underwriting, four program families, 43 states. Find your path in 5 minutes.