Non-QM loans in Florida and Colorado for self-employed borrowers
What is a Non-QM loan?
A Non-QM (non-qualified mortgage) loan is a home loan underwritten to a lender's own guidelines instead of agency rules. It lets self-employed borrowers, contractors and asset-rich buyers document income with bank statements, 1099s, a CPA-prepared P&L or liquid assets rather than tax returns. Rates are usually higher than conventional loans and vary by credit, down payment and documentation.
- Non-QM loans replace tax returns with bank statements, 1099s, a P&L or assets as proof of income.
- They suit self-employed borrowers whose write-offs lower their taxable income.
- Rates are typically above conventional pricing and move with credit score, down payment and documentation type.
- This tool prices Florida and Colorado primary homes and second homes live.
- Buying a rental? A DSCR loan, which qualifies on rent, is usually the better fit.
The six documentation options are 12- and 24-month bank statements, 1- and 2-year 1099s, a profit and loss statement and asset depletion. Change the documentation type in the tool to see how pricing moves for the same loan.
Price a Non-QM loan
Self-employed? Qualify on how you actually earn. Live wholesale pricing for Florida and Colorado properties. Not an approval, commitment, or guarantee of financing.
Like one of these quotes?
A licensed loan officer will review your scenario and confirm which documentation path prices best for you.
How a Non-QM loan works
- Step 1
Pick your income documentation
Bank statements, 1099s, a P&L or assets — choose the record that best shows your real income.
- Step 2
The lender calculates qualifying income
Deposits, 1099 totals or assets are converted into a monthly income figure using the program's method.
- Step 3
Credit, down payment and property set pricing
Like any mortgage, a stronger credit score and larger down payment usually earn better pricing.
- Step 4
Underwriting confirms the details
The lender verifies documents, appraises the home and issues a final approval before closing.
Non-QM vs. conventional vs. DSCR
The right loan depends on how your income shows up on paper and whether you will live in the home.
| Factor | Non-QM | Conventional | DSCR |
|---|---|---|---|
| Income proof | Bank statements, 1099s, P&L or assets | Tax returns, W-2s, pay stubs | Property rent |
| Best for | Self-employed homeowners | W-2 and steady-income borrowers | Rental investors |
| Occupancy | Primary or second home | Primary, second or investment | Investment only |
| Typical pricing | Above conventional | Generally lower | Above conventional |
How bank statement income is calculated
A sample self-employed borrower using 12 months of business bank statements.
- Total 12-month deposits$240,000
- Sample expense factor50%
- Qualifying annual income$120,000
- Qualifying monthly income$10,000
In this sample, the lender would count $10,000 as monthly qualifying income — even if the tax return shows far less after deductions.
Illustrative only. Expense factors and calculation methods vary by lender and program.
What you'll typically need
- 12 or 24 months of bank statements, 1099s, a P&L or asset statements (depending on the path)
- Government-issued photo ID
- Proof of business ownership or self-employment, such as a business license or CPA letter
- Two months of statements showing down payment and reserves
- Homeowners insurance quote
- Purchase contract or current mortgage statement
Not sure which documentation type fits?
Send your scenario and we'll compare bank statement, 1099 and P&L pricing side by side.
Who uses Non-QM loans
Write-offs reduce taxable income, but deposits show real cash flow.
1099 income qualifies without full tax-return analysis.
Liquid assets can be converted into qualifying income.
Uneven income can be averaged over 12 or 24 months.
Non-QM loans: benefits and trade-offs
- Qualify without tax returns
- Several documentation options to fit your records
- Works for primary homes and second homes
- Live pricing lets you compare paths instantly
- Rates are usually higher than conventional loans
- Larger down payments are often required
- More reserves may be needed
- Fewer lenders offer each program
Non-QM loan questions
What is a Non-QM loan?
A mortgage underwritten to a lender's own guidelines instead of agency rules, so income can be documented with bank statements, 1099s, a P&L or assets instead of tax returns.
Who qualifies for a Non-QM loan?
Self-employed borrowers, contractors, business owners and asset-rich buyers whose tax returns don't reflect their true ability to pay are the most common fit.
Are Non-QM rates higher than conventional rates?
Usually, because the loans carry more lender risk. Your rate depends on credit, down payment, documentation type, property and the market on the day you lock.
Is a Non-QM loan a bad loan?
No. Non-QM simply means the loan falls outside the agency 'qualified mortgage' rules. Lenders still verify your ability to repay using alternative documents.
Can I use a Non-QM loan to buy my primary home?
Yes. This tool prices primary homes and second homes in Florida and Colorado.
Which documentation type usually prices lower?
It varies by scenario. Run the same loan with different documentation types in the tool to compare.
How much down payment do I need?
Down payment requirements vary by program, credit score and documentation type. Enter your numbers in the tool to see which options price.
Can I refinance into a Non-QM loan?
Yes. Non-QM programs typically allow rate-and-term and cash-out refinances, subject to program limits.
Where is Non-QM pricing available?
Florida and Colorado, where Simply Approved Mortgages is licensed for residential lending.
I'm buying a rental. Should I use Non-QM?
Rental properties usually fit a DSCR loan better, because DSCR qualifies on the property's rent instead of your personal income.
Simply Approved Mortgages is a mortgage broker, NMLS #2620881, licensed for residential lending in Florida and Colorado. Pricing shown by the tool is from current wholesale schedules, changes without notice, and is not a loan approval, commitment to lend, or rate lock. Program availability, documentation and limits vary by lender and are confirmed in underwriting.
How We Evaluate This Scenario
The first question on a Non-QM file is which document tells your income story best. A business owner with strong deposits but heavy write-offs usually prices better on bank statements than on a P&L, while a contractor paid on 1099s often has the cleanest file using 1099 totals.
Pricing on these programs moves most with credit tier, down payment and the documentation type itself. Running the same loan through two or three documentation paths in the tool before you apply is the fastest way to see where you land.
Keep business and personal accounts separate for the months you plan to use. Transfers between your own accounts are typically excluded from deposits, so commingled statements can understate your qualifying income.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
Qualify on how you really earn
Get a personalized Non-QM rate quote for your Florida or Colorado home.
Get Your Personalized Rate QuoteGet your personalized investor loan quote
Pick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.
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