Alternative Documentation loans
When the W-2 box doesn't fit your life.
Alternative documentation loans (also called non-QM, or non-qualified mortgages) qualify you on the strength of your finances, not the shape of your paperwork. Bank statements, asset depletion, DSCR, 1099 income, or recent-credit-event programs. Same goal as a traditional mortgage; a path that actually fits.
Eligibility
- Self-employed or 1099 income that does not show clean on tax returns
- Real estate investor financing on cash-flowing properties (DSCR)
- Significant assets but limited documentable income (asset depletion)
- Higher debt-to-income ratio than agency guidelines allow (often above 43%)
- Recent bankruptcy or foreclosure, with documented recovery
- Loan amount above the conforming or high-balance jumbo threshold
- Down payment typically 10 to 25%+ depending on the program
- Credit profile varies by program; many start at 660 to 680
Benefits
- Qualify on bank statements, 1099s, P&L, assets, or rental cash flow instead of tax returns.
- DSCR loans for investment properties qualify on the property's income, not yours.
- Asset-depletion programs let retirees or recent business-sale borrowers use liquid assets as qualifying income.
- Recent credit-event programs (bankruptcy or foreclosure) often open at 12 to 24 months out, not the agency 4 to 7 years.
- Interest-only and 40-year structures available where they actually serve the borrower.
- Higher DTI tolerance gives breathing room for borrowers with strong reserves.
How we help
Alt-doc is the program category most likely to be sold badly. Rate, fees, and prepayment penalties vary wildly between investors, and the wrong program for your situation can cost you tens of thousands over the life of the loan. We work the comparison so you see the real trade-offs, not a single quote from the first lender who said yes.
We will tell you when an alt-doc loan is the right answer and when it is not. If a clean conventional or jumbo gets you there at a better rate with a few months of planning, that is the call we will make. Alt-doc is a tool, not a shortcut.
Concierge customer service throughout. Self-employed and investor files take more documentation prep, not less. We handle the back-and-forth with the lender so you can keep running your business.
FAQ
Is this a 'subprime' loan?
No. Alt-doc and non-QM loans are not subprime; they use alternative qualification methods inside a regulated framework. The lender still verifies your ability to repay. The 2008-era stated-income, no-doc products do not exist in their old form.
Why is the rate higher than a conventional loan?
Alt-doc loans carry slightly higher rates because the lender holds the risk on its own balance sheet rather than selling to Fannie Mae or Freddie Mac. The premium varies by program, credit profile, down payment, and reserves. We will quote you specifics for your file, not a brochure number.
What is a DSCR loan?
Debt Service Coverage Ratio. The property's rental income has to cover the new mortgage payment by a defined ratio (usually 1.0 to 1.25). Your personal income is not the qualifier. Common for buy-and-hold investors, BRRRR strategies, and short-term-rental properties.
What does 'bank statement loan' mean?
Instead of tax returns, the lender averages 12 to 24 months of personal or business bank statement deposits to establish income. Useful for self-employed borrowers who write off heavily and show low net income on returns.
I had a recent bankruptcy. Can I still get a loan?
Often, yes. Several alt-doc programs allow as little as 12 to 24 months from bankruptcy discharge, depending on circumstances and credit recovery. Conventional and FHA require longer seasoning. We will walk you through the realistic timeline for your situation.
Are there prepayment penalties?
Some alt-doc and DSCR programs carry prepayment penalties (typically 3 to 5 years, step-down structure). Some do not. The presence and structure of the prepay is one of the biggest cost variables; we will flag it explicitly on every quote.
Can I refinance into a conventional loan later?
Yes, that is a common play. Use the alt-doc loan to get into the property now, season your situation (two years of clean returns, two years past the credit event), then refinance into a conventional or jumbo at a better rate. We plan for that exit at the start.
Are 40-year mortgages worth it?
Sometimes. Lower monthly payment, higher total interest over the life of the loan. Worth it if the cash-flow relief solves a real problem and you have a plan to refinance or pay down ahead of schedule. Not worth it as a default choice.
Ready when you are. Better call Paul.