Best Non-QM Lenders for Self-Employed Borrowers (2026)
A non-QM (non-qualified mortgage) is any home loan that falls outside the Consumer Financial Protection Bureau’s Qualified Mortgage rules — usually because it verifies income differently than agency loans. Non-QM is the umbrella that covers bank statement, 1099, P&L, asset-depletion, and ITIN mortgages.
Typical Rates
7.0%–10.0% (approx.)
Max LTV
Up to 90% (program-dependent)
Typical Terms
30-year fixed or ARM
Min Credit
600–660
What Are Non-QM Loans?
Non-QM does not mean risky or subprime — it simply means the loan does not meet the technical definition of a Qualified Mortgage, most often because it verifies income with bank statements, 1099s, or assets instead of tax returns. These loans are fully underwritten to an ability-to-repay standard; they just use a different yardstick. For self-employed borrowers, non-QM is frequently the difference between qualifying and being turned away by an agency lender.
Who Are Non-QM Loans Best For?
- Self-employed and business-owner borrowers
- Buyers who do not fit conventional or FHA guidelines
- Borrowers using alternative income documentation
- Recent credit-event borrowers who have re-established stability
Pros & Cons
Pros
- +Flexible income documentation beyond tax returns
- +Wider credit and reserve guidelines than agency loans
- +Programs exist for nearly every self-employed situation
- +Fully amortizing 30-year fixed options widely available
Cons
- –Rates and fees are higher than Qualified Mortgages
- –Fewer consumer protections than QM loans by definition
- –Many non-QM lenders are wholesale-only — you apply through a broker
- –Guidelines and pricing vary significantly between investors
Best Non-QM Lenders (12)
These lenders offer non-qm loans, ranked by our editor rating. Click any lender for a full review with detailed terms and expert analysis.
| Lender | Rates | Max LTV | Min Credit | Speed | Best For | Rating |
|---|---|---|---|---|---|---|
| Griffin Funding | 7.25%–9.75% | 90% | 620 | 21–35 days | Self-employed borrowers, Apply direct (no broker) | 4.5 |
| Angel Oak Mortgage Solutions | 7%–9.75% | 90% | 620 | 25–40 days | Broadest non-QM menu, Via broker only | 4.5 |
| New American Funding | 7%–9.5% | 90% | 620 | 21–40 days | Apply direct (no broker), Full product menu | 4.0 |
| Newfi Lending | 7.25%–9.75% | 90% | 620 | 21–35 days | Apply direct (no broker), Non-QM specialist | 4.0 |
| Northpointe Bank | 7%–9.5% | 85% | 640 | 25–40 days | FDIC-insured bank, Apply direct (no broker) | 4.0 |
| Carrington Mortgage Services | 7.25%–10% | 85% | 600 | 25–45 days | Lower credit scores, Apply direct or via broker | 4.0 |
| Deephaven Mortgage | 7%–9.75% | 90% | 620 | 25–40 days | Non-QM pioneer, Via broker only | 4.0 |
| Acra Lending | 7.25%–10% | 90% | 600 | 25–45 days | Established non-QM lender, Via broker only | 4.0 |
| A&D Mortgage | 7.25%–9.99% | 90% | 620 | 25–45 days | Full non-QM menu, Via broker only | 4.0 |
| Newrez | 7%–9.75% | 90% | 620 | 25–40 days | Apply direct or via broker, Smart Series non-QM | 3.5 |
| LoanStream Mortgage | 7.25%–9.99% | 90% | 620 | 25–45 days | NanQ non-QM line, Via broker only | 3.5 |
| Champions Funding | 7.25%–10% | 90% | 600 | 25–45 days | CDFI lender, Via broker only | 3.5 |
Griffin Funding
4.5Griffin Funding is a consumer-direct lender that has built much of its brand around non-QM lending for the self-employed. Borrowers can apply directly online — no broker required — across bank statement, asset-based, 1099, and P&L programs in addition to conventional and VA loans.
7.25%–9.75%
90%
620
21–35 days
$100K–$5M
No experience required
Angel Oak Mortgage Solutions
4.5Angel Oak Mortgage Solutions is one of the largest and most established non-QM lenders in the country, with the broadest self-employed menu in the market. Important for consumers: Angel Oak Mortgage Solutions is a wholesale lender — you cannot apply directly and must work through a mortgage broker.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
New American Funding
4.0New American Funding (NAF) is one of the largest privately held mortgage lenders in the country, offering a full retail menu that includes non-QM options for self-employed borrowers alongside conventional, FHA, VA, and jumbo loans. Borrowers apply directly through NAF.
7%–9.5%
90%
620
21–40 days
$100K–$5M
No experience required
Newfi Lending
4.0Newfi Lending is a non-QM specialist that operates a genuine consumer-direct retail channel in addition to wholesale. Self-employed borrowers can apply directly for bank statement, asset-utilization, 1099, and ITIN programs without going through a broker.
7.25%–9.75%
90%
620
21–35 days
$100K–$4M
No experience required
Northpointe Bank
4.0Northpointe Bank is an FDIC-insured chartered bank that portfolios select non-QM products, letting self-employed borrowers apply directly for bank statement, asset-depletion, and P&L programs. As a depository institution, it underwrites and holds some of these loans itself.
7%–9.5%
85%
640
25–40 days
$100K–$3M
No experience required
Carrington Mortgage Services
4.0Carrington Mortgage Services is a vertically integrated lender and servicer with a deep non-prime and non-QM focus. Its "Flexible Advantage" series targets self-employed and credit-challenged borrowers, and consumers can apply directly through Carrington's retail channel.
7.25%–10%
85%
600
25–45 days
$100K–$4M
No experience required
Deephaven Mortgage
4.0Deephaven Mortgage is a pure non-QM lender (owned by Pretium) that has focused exclusively on alternative-documentation loans since 2012. For consumers, the key point is that Deephaven is wholesale and correspondent only — you reach its programs through a mortgage broker, not directly.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
Acra Lending
4.0Acra Lending (formerly Citadel Servicing) is one of the oldest and largest dedicated non-QM lenders and an active securitizer. It is a wholesale lender — consumers reach its bank statement, 1099, P&L, ITIN, and other programs through a mortgage broker rather than applying directly.
7.25%–10%
90%
600
25–45 days
$100K–$4M
No experience required
A&D Mortgage
4.0A&D Mortgage is a Florida-rooted, nationwide non-QM specialist serving thousands of broker partners and an active issuer of non-QM securitizations. It is a wholesale and correspondent lender — borrowers reach its full self-employed menu through a mortgage broker.
7.25%–9.99%
90%
620
25–45 days
$100K–$5M
No experience required
Newrez
3.5Newrez is a large national lender and servicer (part of Rithm Capital) offering its "Smart Series" of non-QM products. It operates both retail and wholesale channels — consumers can apply directly, though the broadest non-QM guidelines often live on the broker side.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
LoanStream Mortgage
3.5LoanStream Mortgage offers a well-known non-QM line branded "NanQ," covering bank statement, 1099, P&L, asset, and ITIN programs. The NanQ line is a wholesale staple — consumers reach it through a mortgage broker rather than applying directly.
7.25%–9.99%
90%
620
25–45 days
$100K–$4M
No experience required
Champions Funding
3.5Champions Funding is a 100% non-QM lender and a Treasury-designated Community Development Financial Institution (CDFI), a status that supports more flexible, exception-based underwriting for underserved borrowers. It is a wholesale lender — consumers apply through a mortgage broker.
7.25%–10%
90%
600
25–45 days
$100K–$5M
No experience required
Frequently Asked Questions About Non-QM Loans
Is a non-QM loan the same as a subprime loan?
No. Subprime loans of the 2000s often skipped meaningful income verification entirely. Modern non-QM loans are fully underwritten to a documented ability-to-repay standard — they just verify income through bank statements, 1099s, or assets rather than tax returns. The borrower must still demonstrate they can afford the payment.
Why are non-QM rates higher?
Non-QM loans cannot be sold to Fannie Mae or Freddie Mac, so they are funded by private investors who price in the added flexibility and risk. That typically adds roughly 1–2% to the rate versus a comparable conventional loan, with the exact premium depending on credit, LTV, and documentation type.
Can I refinance a non-QM loan into a conventional loan later?
Often, yes. Many borrowers use a non-QM loan to buy or refinance now, then move into a lower-rate conventional loan once their tax returns or credit profile support agency guidelines. There is no prepayment penalty on most owner-occupied non-QM loans, though you should confirm with your lender.
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