Non-QM Mortgage Rates

DSCR Loans (Debt Service Coverage Ratio)

DSCR loans qualify based on the property's rental income rather than your personal income. If the property cash-flows, you can qualify — no tax returns, no W-2s, no employment verification required.

DSCR Ratio Tiers

DSCR Requirements

• Investment property only (no primary residence)
• Minimum credit score: typically 660+
• Minimum down payment: 20–25%
• Appraisal with rent schedule or lease required
• Available for SFR, 2–4 unit, condos, and some 5–8 unit properties
• Loan amounts from $100K to $3M+ depending on lender
• No personal income documentation required

Bank Statement Programs

Designed for self-employed borrowers who show less income on tax returns than they actually earn. Instead of tax returns, lenders analyze 12–24 months of bank statements to calculate qualifying income.

• 12 or 24 months of personal or business bank statements
• Minimum credit score: typically 620+
• Must be self-employed for at least 2 years
• CPA letter or P&L may be required
• Primary residence, second home, or investment property
• Down payment: 10–20% depending on credit and property type

Asset Depletion

For high-net-worth borrowers with significant liquid assets but limited traditional income. The lender divides your eligible assets over a set period (typically 60–84 months) to calculate a monthly qualifying income.

• Minimum credit score: typically 680+
• Eligible assets: checking, savings, investment accounts, retirement (discounted)
• Divisor: 60–84 months depending on lender
• No employment or income documentation required
• Primary residence, second home, or investment
• Ideal for retirees, high-net-worth individuals, and trust-funded borrowers

Foreign National

For non-US citizens who want to purchase investment property in the United States. No SSN or US credit history required — qualification is based on the property and borrower's global financial profile.

• Valid passport required
• Investment property only (no primary residence)
• Minimum down payment: 25%
• Maximum loan amount: typically $1.5M
• Reserves: 12–18 months PITIA
• No US credit score required (international credit may be reviewed)

ITIN Loans

For borrowers with an Individual Taxpayer Identification Number instead of a Social Security Number. These programs provide a path to homeownership for residents who file US taxes but aren't eligible for a SSN.

• Valid ITIN required
• 2 years of US tax returns filed with ITIN
• Primary residence or investment property
• Minimum credit score varies by lender (alternative credit may be accepted)
• Down payment: 15–25% depending on program

How Non-QM Rates Compare

Non-QM rates are generally higher than conventional or government loan rates. The premium reflects the added risk and flexibility these programs offer. Expect rates to run 1–3% above comparable agency products, depending on the program, credit score, LTV, and documentation type.

That said, Non-QM rates have come down significantly in recent years as more investors enter the space. Competition is driving better pricing, especially for DSCR and bank statement programs with strong borrower profiles.

Understanding how pricing adjustments work can help you position yourself for the best rate. Learn more about how mortgage pricing works and how points and credits can shift your rate up or down.