1) Match your program to how you earn. 2) Confirm conventional isn't cheaper. 3) Check credit vs the tiers (640 floor, 740+ best). 4) Plan down payment (10–25%) + reserves. 5) Gather your program's docs. 6) Pre-approve & shop the file. 7) Strengthen a weak file if needed. See Requirements and Eligibility.
On this page
The 7 steps to qualify
Match your program to how you earn
Deposits → bank statement; rent → DSCR; assets → asset qualifier; 1099s → 1099. This sets every requirement below.
Confirm conventional isn't cheaper
If standard docs qualify you, conventional usually wins. Use non-QM when that door is closed by how you earn.
Check credit against the tiers
~640 floor, 680–700 better pricing, 740+ best. Raising your score before applying can drop your rate a full point. Rates →
Plan down payment & reserves
10–25% down by program/credit, plus 3–6+ months reserves (retirement/investment accounts usually count). More down = lower LTV = better rate.
Gather your program's income docs
Bank statements (12–24 mo), a lease/rent schedule, asset statements, or 1099s — instead of tax returns. Process →
Get pre-approved & shop the file
Because non-QM pricing varies widely, have your file shopped across many investors. Pre-approval guide →
Strengthen a weak file if needed
Fall short on one factor? Route around it — see the table below. Small moves often shift you into a better tier.
Strengthening a weak file — the routing table
| If your weak spot is… | Route around it by… |
|---|---|
| Credit below the tier you want | Pay down balances, fix errors, wait for a score bump; a longer bank-statement period can help too |
| DTI too high | Choose DSCR (no personal DTI) or a 40-yr / interest-only structure to lower the payment |
| Down payment short | Gift funds where allowed, or accept a slightly higher rate at a higher LTV tier |
| Investment property won't cash-flow | Boost the DSCR ratio (higher rent, larger down) or use a no-ratio DSCR with more down |
| Thin income documentation | Switch programs — assets → asset qualifier; 1099 → 1099 loan |
| Reserves short | Count retirement/investment accounts, or reduce loan size |
Non-QM qualifying FAQs
First step to qualify?
Match your program to how you earn — deposits, rent, assets, or 1099s. It sets every other requirement.
What credit score?
~640 floor, 680–700 better, 740+ best. Higher credit = lower rate and more leverage.
How much down?
10–25% by program/credit, plus 3–6+ months reserves. More down lowers LTV and your rate.
What if my file is weak?
Route around it — raise credit, add down, boost DSCR, switch programs. See the routing table.
Do I need tax returns?
Usually not — deposits, rent, assets, or 1099s qualify you instead.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.