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Non-QM Loans Designed for Modern Borrowers

Non-QM loans allow modern borrowers to qualify using alternative income or assets. LendFriend structures non-QM loans that allow you to buy or refinance your home without forcing traditional lending constraints.

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Non-QM Loans

Traditional mortgages backed by Fannie Mae, Freddie Mac, or government programs like FHA and VA rely on strict rules around income documentation, credit history, and employment stability. For many modern borrowers, especially the self-employed, investors, retirees, and high-net-worth individuals, those traditional lending rules don’t reflect how money is actually earned or held, which means you're either not qualifying for the loan you want or getting denied all together.

That’s where Non-QM loans come in.

What is a Non-QM loan?

 A Non-QM Loan provides a flexible alternative for borrowers who don’t meet conventional underwriting standards but are still financially strong.
 

Non-QM loans may allow income to be verified using bank statements, assets, rental cash flow, or other alternative documentation instead of traditional W-2s or tax returns. In exchange for this flexibility, Non-QM loans may carry different pricing or down payment requirements depending on the borrower’s profile.

At LendFriend Mortgage, we specialize in structuring Non-QM loans that align with real-world income, assets, and cash flow—without forcing borrowers into boxes that don’t fit.

Non-QM Loan Programs For Every Borrower

With access to a broad network of non-QM lenders, LendFriend Mortgage offers flexible mortgage solutions for borrowers whose income, assets, or financial profiles don’t fit traditional guidelines. Whether you’re self-employed, asset-rich, relocating, or leveraging alternative income, we structure non-QM loans that support both home purchases and refinances—without unnecessary friction.

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Asset Depletion Loans

Asset depletion loans allow borrowers to qualify using liquid assets instead of traditional income. Investment accounts, retirement funds, and other eligible assets can be converted into qualifying income for mortgage approval. These loans are commonly used by high-net-worth borrowers, retirees, and executives whose wealth is not reflected on a W-2.

 

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Bank Statement Loans

Self-employed borrowers don’t always show their true earning power on tax returns. Bank statement loans allow income to be verified using personal or business bank statements instead of W-2s or tax filings. These non-QM loans are ideal for business owners, consultants, and entrepreneurs purchasing or refinancing a home.

 

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Buy Before You Sell

Buy Before You Sell programs allow homeowners to purchase a new home before selling their current one. By accessing home equity upfront or temporarily reducing debt-to-income ratios, relocating borrowers can make non-contingent offers and avoid the pressure of coordinating two transactions at once.

 

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Crypto-Backed Mortgages

Crypto-backed mortgages allow borrowers to qualify using cryptocurrency holdings without liquidating assets. Eligible Bitcoin and Ethereum holdings can be used as qualifying assets, helping borrowers purchase or refinance a home while avoiding taxable events and maintaining long-term investment positions.

 

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Non-QM Loans: Pros and Cons

Non-QM loans are designed for borrowers whose financial profiles don’t fit traditional mortgage guidelines—but that flexibility comes with important trade-offs. Understanding both sides is key to deciding whether a Non-QM loan is the right fit.

Non-QM Loan Pros

Non-QM loans open the door to homeownership and refinancing for borrowers who are financially capable but don’t qualify under conventional underwriting rules. These loans are commonly used by:

  • Retirees whose income is asset-based rather than employment-based

  • Real estate investors with complex cash flow

  • Self-employed or gig-economy workers

  • Borrowers with high debt-to-income ratios

  • Borrowers with credit events or non-linear credit histories

What makes this possible is alternative documentation.

Traditional mortgage guidelines—set under the Consumer Financial Protection Bureau’s Ability-to-Repay framework—rely heavily on standardized income verification, typically using W-2s, pay stubs, tax returns, and bank statements tied to employment income.

Non-QM loans allow borrowers to qualify outside of those narrow terms by using documentation that better reflects real-world finances. Depending on the program, this may include bank statements, 1099 income, profit-and-loss statements, written verification of employment, asset-based income calculations, or rental income. For many borrowers, this flexibility is what makes buying or refinancing a home possible in the first place.

Non-QM Loan Cons

Because Non-QM loans fall outside of traditional underwriting standards, they are not eligible for purchase by Fannie Mae or Freddie Mac and are not backed by government agencies such as FHA or USDA.

As a result, lenders retain more risk when issuing Non-QM loans, which means Non-QM loans often carry higher interest rates than conventional mortgages— translating to higher monthly payments depending on the structure of the loan.

Some Non-QM programs may also offer loan terms longer than 30 years. While extended terms can improve cash flow in certain situations, they may increase the total amount of interest paid over the life of the loan and keep borrowers in their mortgage longer.

How LendFriend Approaches Non-QM Loans

Non-QM loans aren’t one-size-fits-all—and they shouldn’t be treated that way. At LendFriend, the goal isn’t simply to approve a loan, but to structure the right loan based on a borrower’s full financial picture. That includes evaluating whether a Non-QM option truly makes sense today, or whether a borrower may be better served by a different strategy now or in the near future.

 

A Streamlined Process Led by Non-QM Loan Experts

LendFriend’s process is led by co-founders Eric and Michael Bernstein, experienced mortgage advisors who specialize in complex non-QM, jumbo, and alternative income loans. Every file is reviewed strategically from the start to create a clear, efficient path to approval.

Only the Documentation That Matters

Because Eric and Michael know exactly how non-QM lenders underwrite, borrowers submit only what’s truly needed. Documentation is tailored to the loan—not padded with unnecessary requests—keeping the process fast and focused.

Smooth, Predictable Closings

Non-QM loans can be a difficult experience for the borrowers, but not when you work with LendFriend. We structure loans correctly upfront to avoid last-minute issues. With hands-on oversight through closing, Eric and Michael help ensure a smooth, on-time experience without surprises.
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Read Why Non-QM Borrowers Love Working With LendFriend Mortgage

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  • I recently used LendFriend for my home purchase, and they were fantastic! The team was professional, responsive, and truly caring. They explained everything clearly, answered all my questions, and made the process smooth and stress-free.What really sets them apart is their forward-thinking approach—they accept cryptocurrency holdings as proof of income/assets, which was a game-changer for me and made qualifying so much easier. Communication was excellent, they secured a great rate, closed on time with no hidden fees, and their online portal was super easy to use.If you want a modern lender that puts you first, embraces crypto, and delivers results, choose LendFriend. I'll recommend them to everyone—thank you for making my dream home possible!
    Alex Green
    Crypto-backed Mortgage
  • LendFriend made my homebuying experience so easy. As a business owner, I heard horror stories about how hard it can be for guys like me to get a mortgage. Thankfully I found LendFriend. Eric and the team had me approved in no time. My rate was great and they closed on time. Couldn’t ask for more
    David Marino
    Self-employed Mortgage
  • I had been looking for a house for 2-3 years and while it was a journey as a business owner with a difficult financial situation this company did what 6 others could not. They got me a jumbo loan based off my business income and when I needed more they just made it happen twice. This process of funding can be extremely difficult and basically a blow to the ego but Eric and his team are literally magicians and my fiancee and I are now closed on out dream house. I recommend them whole heartedly
    Shawn Tassone, MD, PhD
    Bank Statement Loan
  • LendFriend is the only place to go for mortgage brokerage services. Their unparalleled technical knowledge, relationships with a wide array of lenders, and outstanding service make them the absolute best place to secure your next mortgage.
    Rob Daake
    Self-employed Mortgage
  • We had so many questions while navigating the sale of one home and purchasing another. The team at LendFriend answered them all in a quick and easy to understand manner. They made this stressful time very manageable and were with us every step of the way!
    Karen Holland
    Buy Before You Sell
  • LendFriend Team, I wanted to express my gratitude for your professionalism and guidance in securing the financing for our new home.The world of mortgages felt overwhelming and honestly in my current position I was almost about to give up, but you made it possible with a clear process and super straightforward.We were impressed with your ability to secure loan (Non-QM/Asset-based), I looked around and there are very few who are interested in posting these type of loans, and I know there are a lot of people like me out there.The clarity and responsiveness were a huge comfort. We truly appreciate your hard work in making our home-ownership dream a reality.
    Javier Perez Lamadrid
    Crypto-Backed Mortgage

Learn More About Non-QM Loans in our Learning Center

The LendFriend Learning Center offers in-depth guidance on home buying, refinancing, and advanced mortgage strategies—including Non-QM solutions like crypto, asset depletion, and self-employed loans. Explore our most-read articles to better understand your options before you make a move.

FAQs: Non-QM Loans

Who should consider a Non-QM loan?

Non-QM loans are designed for borrowers who may not meet traditional mortgage guidelines but are still financially qualified. This often includes self-employed borrowers, retirees, real estate investors, high-net-worth individuals, and buyers using alternative income or asset documentation.

What’s the difference between non-conforming loans and Non-QM loans?

Non-conforming loans simply exceed the conforming loan limits set by Fannie Mae and Freddie Mac. In practice, this usually means jumbo loans. Many jumbo loans still follow traditional underwriting rules, including full income documentation, debt-to-income limits, and standard credit requirements. A jumbo loan can be non-conforming without being Non-QM.

Non-QM loans, on the other hand, are defined by how the borrower qualifies. These loans fall outside qualified mortgage guidelines and allow alternative methods of documenting income, assets, or cash flow. A Non-QM loan may be below or above conforming loan limits and is not defined by loan size.

What types of Non-QM loan products are available?

Non-QM loan programs include bank statement loans for self-employed borrowers (often called self-employed mortgages), asset depletion loans for asset-rich clients, DSCR loans for real estate investors, Buy Before You Sell programs, and crypto-backed mortgage options that allow digital assets like Bitcoin and Ethereum to be used for qualification.

Do Non-QM loans require higher down payments?

Down payment requirements vary by program, credit profile, and documentation type. Some Non-QM loans require more equity, while others are competitive with traditional options depending on the borrower’s strength.

How do I know which Non-QM loan is right for me?

The right Non-QM loan depends on how you earn income, hold assets, and plan to use the property. Because Non-QM programs vary widely, structure matters as much as qualification. Speaking with Eric or Michael at LendFriend before you get stated helps ensure the loan is matched correctly to your financial profile from the start, avoiding unnecessary revisions or delays later in the process. Schedule a call to get started on your preapproval today.

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