Are non-QM loans safe?

Yes. Non-QM loans must still meet the federal ability-to-repay rule. They are not the subprime loans of 2008 — they verify income through alternative documentation and require down payments of 10% or more.

What credit score do I need for a non-QM loan?

Most non-QM programs in Florida start at 620, with better rates at 680 and 720. Some DSCR investor programs go as low as 600.

Can I get a non-QM loan one day after a bankruptcy in Florida?

Yes. Non-QM lenders offer programs with no waiting period after a bankruptcy, foreclosure, or short sale, although rates are higher than seasoned-credit options.

Is a DSCR loan a non-QM loan?

Yes. DSCR (Debt Service Coverage Ratio) loans are a non-QM product designed for investors — they qualify based on the property's rental income instead of the borrower's personal income.

Non-QM Loans

Non-QM Loans Explained: A Florida Borrower's Guide

Non-QM mortgages give self-employed, foreign national, and investor buyers a way to qualify when conventional and FHA say no.

7 min readPublished March 8, 2026

Quick Answer

Non-QM (non-qualified) loans are mortgages that do not follow the Consumer Financial Protection Bureau's QM rule. They are designed for borrowers who can repay but do not fit a traditional W-2 profile — self-employed, real estate investors, foreign nationals, retirees living on assets, and recent credit-event borrowers.

Key takeaways

Bank statement loans: qualify on 12–24 months of deposits, no tax returns.
DSCR loans: investor loans qualified on the property's rent, not personal income.
ITIN loans: for borrowers without a Social Security number.
Asset depletion: qualify off liquid assets instead of income.
Rates are typically 0.5%–1.5% above conventional but unlock approvals conventional cannot.

What makes a loan 'non-QM'

A QM (qualified mortgage) follows strict CFPB rules: documented W-2 or tax-return income, debt-to-income under 43%, and standard amortization. Non-QM loans use the same risk-management principles but verify ability to repay in other ways — bank deposits, rental income, assets, or interest-only structures.