Flexible mortgage solutions for self-employed buyers, investors, and unique income scenarios
Not everyone fits the traditional mortgage box. That’s where Non-QM loans come in. Short for Non-Qualified Mortgage, these programs offer flexible solutions for buyers with unique income, credit, or property types that don’t meet standard Fannie Mae or FHA guidelines.
We offer Non-QM loans in Colorado to help clients across Centennial, Denver, Parker, Castle Rock, Highlands Ranch, and the surrounding areas purchase or refinance homes that fall outside the lines of conventional lending.
Find the answers to common questions in our Non-QM Loan FAQs section below!
What is a Non-QM loan?
A Non-QM loan is a mortgage that doesn't meet the strict rules set by federal agencies like Fannie Mae, Freddie Mac, or the CFPB. These loans still follow smart lending principles but give more flexibility in how borrowers qualify.
Non-QM loans are often the right fit for:
- Self-employed buyers with write-offs or irregular income
- Real estate investors using rental income or property cash flow
- High-net-worth clients using asset-based income
- Buyers with recent credit events (bankruptcy, foreclosure, etc.)
- Borrowers purchasing non-warrantable condos or unique properties
Learn more from Consumer Financial Protection Bureau’s guide to QM vs. Non-QM loans
Common Non-QM loan types
We offer several flexible mortgage options, including:
- Bank Statement Loans – Qualify using personal or business deposits
- DSCR Loans – Debt Service Coverage Ratio loans for investors
- Asset Qualifier Loans – Use savings or investment balances as income
- Interest-Only Loans – Pay interest only for a set period to lower payments
- Recent Credit Event Loans – For those with a foreclosure or bankruptcy on record
Why work with us on your Non-QM loan?
- We specialize in matching Non-QM products to your goals
- We work with multiple Non-QM lenders for competitive terms
- We’ll explain every step clearly...no jargon, no surprises
- We’re Colorado-based and understand local property types and lending conditions
Do you qualify?
Every Non-QM program has its own guidelines, but you may qualify if:
– You’re self-employed and prefer to qualify using bank statements
– You’re an investor looking for cash-flow-based lending
– You’ve had credit challenges but have strong assets or equity
– You’re buying a property that doesn’t meet standard loan rules
We’ll review your full financial picture and help you choose the program that fits best.
Ready to explore Non-QM financing?
Call or text us at 303-670-0137, email rbaxter@choicemortgage.com, or request your personalized Non-QM quote. We’ll help you buy or refinance with a smarter approach to mortgage lending.
Non-QM Loan FAQs
A Non-QM (Non-Qualified Mortgage) loan is a home loan that offers more flexible underwriting criteria, designed for borrowers who don't fit the strict rules of traditional Qualified Mortgages. They provide alternative paths to financing for unique financial situations.
Non-QM loans are ideal for self-employed individuals, real estate investors, those with complex income structures (like gig workers), or borrowers needing creative solutions not offered by conventional loans. Many diverse financial situations in Colorado benefit from these options.
Popular Non-QM loan types include Bank Statement loans (for self-employed), Debt Service Coverage Ratio (DSCR) loans for investors, Asset Depletion loans, and interest-only programs. Each type caters to specific borrower needs.
Non-QM loans typically come with slightly higher interest rates and fees due to their increased flexibility and perceived risk compared to standard QM loans. However, for those who qualify, they offer essential access to financing that might otherwise be unavailable.
Requirements vary significantly by lender and specific Non-QM loan type, but generally, credit scores can be more flexible (though higher is better), and down payments often start from 10% to 20%.
The primary benefits include flexible income verification (e.g., using bank statements instead of W2s), easier qualification for real estate investors, and access to home financing for unique borrower profiles. They open doors to homeownership or investment that traditional loans might close.
Yes — Non-QM programs are more flexible with recent credit events. Depending on the lender, you may be eligible as soon as 12 to 24 months after a bankruptcy, short sale, or foreclosure.
No — Non-QM loans can be used for primary residences, second homes, and investment properties. They're often used by buyers who don't fit the standard income box but want to purchase or refinance in Colorado.
Down payments typically start around 10–20%, depending on the program and credit profile. Some investor programs may require more, especially for DSCR or bank statement loans.
Generally, yes — because the lender is taking on more risk, rates are usually higher than conventional or FHA loans. But for many buyers, the trade-off is worth it to access financing they wouldn’t otherwise qualify for.
Yes — some Non-QM lenders will use actual short-term rental income from platforms like Airbnb to help qualify you, as long as it's well-documented and consistent. Check out our blog post going more in-depth on this topic: Unlocking Investment Potential: Can You Use a Non-QM Loan with Airbnb/VRBO Income in Colorado?
Most Non-QM loans do not require private mortgage insurance (PMI), even with lower down payments — which is a big benefit for many Colorado buyers and investors.
