Across non-QM programs: credit floors often start near 640 (680–700 for best pricing), down payments run 10–25% by program and credit, no mortgage insurance applies at any LTV, and tax returns usually aren't required. Each program has its own bars — bank statement uses deposits, DSCR uses rental income, asset uses balances. Who fits which is on Eligibility.
The shared non-QM rules
"Non-QM" means non-qualified mortgage — a loan that doesn't meet the government's strict Qualified Mortgage box (full tax-return documentation, 43% DTI cap). It's not subprime: these are creditworthy borrowers with non-traditional income. A few rules hold across almost every program:
- No mortgage insurance — at any loan-to-value, on any program. Ever.
- Alternative income docs — deposits, rental income, or assets instead of tax returns.
- Flexible DTI — many programs allow up to ~50% (DSCR uses none).
- Slightly higher rates — typically 0.5–2% above conventional, not subprime-level. See Rates.
Credit & LTV tiers
Non-QM pricing is tiered — your credit score sets both your rate and how much you can borrow against the property (LTV):
| Credit score | Typical max LTV | Pricing |
|---|---|---|
| 720+ | Up to ~85% | Best |
| 700–719 | ~85% | Near-best |
| 680–699 | ~80–85% | Standard |
| 660–679 | ~80% | Higher |
| 640–659 | ~75–80% | Highest |
Illustrative 2026 tiers; exact floors and LTVs vary by lender and program. Some programs set higher minimums.
Requirements by program
Here's where the specifics live — each non-QM program has its own bars:
| Program | Credit | Down | Qualifies on |
|---|---|---|---|
| Bank Statement | ~640–680+ | 10–20% | 12–24 mo of deposits |
| DSCR | ~640–680+ | 20–25% | Rental income (DSCR ≥1.0) |
| Asset Qualifier | ~700+ | 20–30% | Liquid assets ÷ 360 |
| ITIN | Varies | 15–25% | ITIN + 2 yr filing history |
| 1099 | ~640–680+ | 10–20% | 1099 income |
Notice the pattern: the credit and down payment bars are similar across programs — what changes is how you prove income. That's the whole idea of non-QM. Pick the doc method that matches how you actually earn. Full detail on each program's own page.
Reserves & documentation
| Requirement | The standard |
|---|---|
| Cash reserves | 3–6 months (6–12 on larger/investment) |
| Reserves can include | Retirement & investment accounts |
| Tax returns | Usually not required |
| Mortgage insurance | None, ever |
| Entity ownership (DSCR) | LLC vesting allowed |
Reserves are usually the requirement to plan for: 3–6 months of payments for most programs, more on larger or investment loans. The good news, as with jumbo, is that retirement and brokerage accounts typically count. And because non-QM carries no mortgage insurance, the all-in cost is often closer to conventional than the rate alone suggests.
Non-QM requirements FAQs
What credit score do I need?
Often ~640 floor, 680–700 for best pricing; asset qualifier wants 700+. Higher scores unlock lower rates and more LTV.
How much down?
10–25% by program and credit. Bank statement ~10–15% (primary); DSCR 20–25%. Stronger credit lowers it.
Is there mortgage insurance?
No — non-QM has no MI at any LTV, which offsets part of the higher rate.
Are tax returns required?
Usually not — that's the point. Deposits, rental income, or assets qualify you instead.
What reserves?
3–6 months typically (6–12 on larger/investment). Retirement/investment accounts usually count.
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.