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Portfolio & Non-QM Financing

Your income is real.
Let's document it differently.

Self-employed, an investor, or asset-rich but "income-light" on paper? Traditional loans read tax returns and pay stubs. My portfolio programs read your bank deposits, your assets, or the property's own cash flow - so a strong borrower doesn't get turned away over paperwork.

01 Bank Statement 02 One-Year Tax Return 03 1099-Only 04 P&L-Only 05 Asset Utilization 06 DSCR 07 ITIN & Foreign National

Program guidelines on this page last verified . Guidelines, limits and program terms change — verified figures are current as of that date, not a commitment to lend.

The short answer

What is a non-QM loan?

Non-QM means the loan sits outside the Qualified Mortgage box, not that it is subprime. These are fully underwritten loans for borrowers whose income or situation does not fit agency guidelines: self-employed, real estate investors, foreign nationals, ITIN borrowers, recent credit events, or asset-rich and income-light retirees.

A different kind of "qualified"

Great borrowers the old rules miss

"Non-QM" simply means the loan is qualified outside the standard agency rulebook - held in portfolio, with common-sense documentation. Same rates-you-can-live-with, same closing, just a smarter way to prove you can pay.

Self-employed

Your write-offs shrink your taxable income - and your traditional loan approval with it. We can qualify on deposits instead.

Asset-rich, income-light

Substantial savings or investments but little monthly W-2 income? We can turn your liquid assets into qualifying income.

Real estate investors

Buying or refinancing a rental? Qualify on the property's rent - not your personal income or job history.

01
Qualify on deposits

Bank Statement

For self-employed borrowers & business owners

Instead of tax returns, we use the cash flowing through your bank accounts to show what you really earn - ideal when write-offs make your returns understate your income.

  • Documentation12 or 24 months
  • Max LTVUp to 90%*
  • Reserves6–12 mo PITIA
  • OccupancyPrimary · 2nd · Investment
  • Business-statement factor50% expense*
  • Seller concessionsTypically up to 6%*
How it works
  • 12 or 24 consecutive months of statements - your choice.
  • Business statements: a 50% expense factor applies (a lower CPA-verified factor can be used if documented).
  • Personal statements: up to 100% of normal-course deposits count - no expense factor - when business expenses run through a separate account.
  • 90% LTV needs a clean profile and higher FICO; 80% LTV is the pricing sweet spot.
About that 90%: the 90% LTV tier is primary residence only - 700+ FICO (720 preferred), no credit event in the last 36–48 months, max loan $1.5M, and 12 months of PITIA reserves. Outside those bounds, 80% LTV is the standard.
Bank-statement scenarios are hand-quoted - let's talk
02
Streamlined docs

One-Year Tax Return

For established, strong self-employed borrowers

A faster path for seasoned business owners: qualify on your most recent single year of returns instead of the usual two-year average.

  • Returns requiredMost recent 1 year
  • Max LTVUp to 90%*
  • Reserves6–12 mo PITIA
  • OccupancyPrimary · 2nd · Investment
  • Seller concessionsTypically up to 6%*
How it works
  • Qualify on one year of filed personal and business returns - not two.
  • Best for a business that's active, stable, and clearly on track to keep earning.
  • Less paperwork than a standard self-employed file.
Quoted case-by-case - let's talk it through
03
Turn assets into income

Asset Utilization

For high-net-worth borrowers with strong reserves

Little or no traditional monthly income, but substantial liquid assets? We convert your verified liquid balances into qualifying monthly income - no employment required.

  • Max LTVUp to 80%
  • Assets must beFully liquid & verified
  • Eligible accountsCash · MM · vested retirement/investment
  • Divisor84–120 months
  • OccupancyPrimary · 2nd · Investment
How it works
  • We start with your eligible liquid assets, then subtract down payment, closing costs and required reserves.
  • The remaining balance is divided over a set period (typically 84–120 months) to set your qualifying income.
  • No job, no problem - the assets do the qualifying.
Run an asset scenario in Number Crunch →
04
The property qualifies itself

DSCR

For real estate investors - investment property only

Debt Service Coverage Ratio loans qualify on the rent the property brings in - not your personal income or employment. If the rent covers the payment, the deal works.

  • Qualifies onProperty cash flow
  • Standard ratio1.00x or higher
  • Exception floorDown to 0.75x*
  • Max LTVUp to 80%
  • Loan amountUp to $3.5M
  • Reserves12–24 mo PITIA
  • Seller concessionsTypically up to 2%*
  • OccupancyInvestment only
How it works
  • DSCR = gross monthly rent ÷ the full payment (principal, interest, taxes, insurance & HOA).
  • 1.00x is standard; some files go to 0.75x with a pricing/LTV adjustment. First-time investors and short-term rentals are allowed.
  • Title can vest in a single-purpose LLC (personally guaranteed).
  • New York note: prepay penalties are not allowed on owner-occupied homes - on investment DSCR they're legal and typically priced by vesting and balance.
Run a DSCR scenario in Number Crunch →

*Expense factors, DSCR exception floors, LTV ceilings and prepayment terms vary by file and are confirmed at pricing. Figures on this page are program guidelines, not a commitment to lend.

More ways to document

Also available

Same portfolio approach, a different way to prove your income. If one of these four programs fits your situation better, we'll build the file around it.

1099 income

1099-Only

Qualify with 1099s instead of tax returns - a 1- or 2-year 1099 history from a single source. A low, flat expense factor (typically 10–30%) is applied to your gross earnings.

Hand-quoted - let's talk
CPA-prepared

P&L-Only

No bank statements, no tax returns. Qualify on a 12- or 24-month Profit & Loss statement compiled and signed by a licensed CPA, EA or registered tax preparer - the net income counts 100%.

Hand-quoted - let's talk
ITIN borrowers

ITIN

No SSN required. For non-citizen residents living and working in the U.S. who file taxes with an Individual Taxpayer Identification Number - to 80–85% LTV, 660 FICO (alternative credit accepted).

Estimate a scenario →
Non-resident

Foreign National

No U.S. credit or asset footprint required. For non-resident investors buying U.S. real estate - qualify on a valid passport/visa and international assets in an approved institution. Investment only, 70–75% LTV.

Run a DSCR scenario →
The ground rules

What most portfolio files have in common

These are the general guidelines you'll typically see across the portfolio programs. Every file is different - actual terms depend on your full profile, the property and current investor guidelines, and are confirmed in writing when we price your loan.

Max DTI
Up to 50%vs. the 43% cap on standard Jumbo QM.
Minimum credit score
660DSCR investment files can go down to 640.
Loan amounts
$100K – $2.5MDSCR up to $3.5M on strong properties.
Credit-event seasoning
24–36 monthsFrom a bankruptcy, foreclosure or deed-in-lieu - down to 12 months with adjustments.
Terms & structure
30-yr fixed · ARMs · Interest-onlyInterest-only qualifies on the fully-amortizing payment to avoid payment shock.
Eligible properties
1–4 unit · PUD · condo · condotelManufactured and mobile homes are not eligible.
Cash-out refinance
Up to 70–75% LTV6 months of ownership to use the new appraised value.
Gifts & seller credits
Owner-occupied only for giftsSeller credits capped at 6% (primary/2nd), 2–3% on investment. No gift funds on DSCR.
Appraisal
Full physical appraisalNo AVMs or appraisal waivers for final value.
Points & fees cap
≤ 5.00% of loanFederal HOEPA limit; must pass compliance review.

The figures above are general program guidelines shown for illustration only - not an offer, commitment or guarantee to lend. Ranges, minimums and maximums vary by borrower, property and program, change without notice, and are subject to full underwriting and credit approval. Confirm your specific terms with Brian before relying on any number on this page.

Brian Marchand
Non-QM is not a consolation prize, and it is not a subprime loan.
Straight talk from Brian

It is a different rulebook — one that does not assume every borrower has two years of W-2s and a simple tax return. For self-employed people, business owners and anyone with a genuinely complicated income picture, it is frequently the honest fit rather than the fallback.

The rate is usually higher. The question worth asking is what the alternative actually is, and for a lot of people the alternative is waiting two years.

— Brian Marchand, Sr. Loan Consultant · NMLS #481563 · call or text me
Straight talk

Who a Non-QM or portfolio loan is not for.

Non-QM is where I close the deals other lenders decline. It is not, however, a reason to skip the cheaper loan. If any of these fit, take the agency loan and keep the money.

You qualify on a conventional or government loan

Non-QM carries a rate premium — that’s the trade for flexible documentation. If FHA, conventional, VA, or USDA will approve you, use it. I’ll tell you when that’s the case.

Compare all programs →Conventional loans →

You have little down payment

Portfolio programs are equity-driven. Most want 10-20% minimum, and the best pricing starts around 25%. There’s no 3%-down Non-QM loan.

FHA loans →SONYMA + DPAL →

Your credit is in the low 500s with no compensating factors

Non-QM is flexible on documentation, not on everything. Most programs want 620 or better, and the pricing tiers punish weak credit hard.

Credit game plan →FHA loans →

You have no reserves

Nearly every portfolio program requires post-closing reserves — three to twelve months depending on the product. Maximum loan with an empty savings account is a decline.

Asset depletion →

You have no documentation at all

There is no true no-doc mortgage anymore. Every program needs something: bank statements, 1099s, a P&L, a lease, an asset statement. Something.

Talk to Brian →

You need the file to close in ten days

Portfolio underwriting is manual and thorough. It’s reliable, but a conventional loan with an automated approval is faster when speed is the deciding factor.

Conventional loans →
Qualifying income

What income we can actually use.

The entire point of Non-QM is that income can be documented in ways agency loans won't accept. Here's the full menu — picking the right one is most of the work.

Ways we can document income

  • Bank statements — 12 or 24 months of business or personal deposits with an expense factor applied.
  • 1099 totals — Contractor income taken from 1099s with an expense factor — simpler than statements and often better priced.
  • CPA-prepared P&L — A profit and loss statement carrying the income, sometimes supported by just two months of statements.
  • One year of tax returns — For a business with a strong recent year that a two-year average would unfairly drag down.
  • Assets converted to income — Asset depletion or asset utilization, dividing eligible assets by a term to produce monthly income.
  • Property cash flow only — DSCR, where the rent qualifies the loan and your personal income is never reviewed.
  • Mixed and blended — A W-2 spouse plus a self-employed borrower, or wages plus rental plus assets on one file.

What still won’t work

  • Cash that never touched a bank — No deposit record, no return, no 1099 — there’s nothing to underwrite.
  • A business under two years — Nearly universal across portfolio programs, with rare exceptions for prior related experience.
  • Transfers dressed up as revenue — Underwriters back out inter-account transfers and owner contributions from any deposit analysis.
  • Unrealized gains — Crypto or stock appreciation. Liquidate and season it and it becomes an asset, which many programs will use.
  • Income you’re about to lose — A contract ending, a business winding down. The underwriter will ask about continuance.
  • Stated income with nothing behind it — The 2008-era product doesn’t exist. Anyone promising it isn’t going to close your loan.

The skill on these files is matching the story to the program. Same borrower, same assets — the difference between the right program and the wrong one is often $200,000 of purchasing power. Tell me the situation and I’ll tell you which door.

Failure points

Why Non-QM loans get denied — and what I do about it.

Portfolio files die from mismatch — the wrong program for the story, or an overlay nobody checked. Very little of it is about the borrower's quality.

Why it dies

The wrong program was selected

A self-employed borrower gets put on a bank statement program when a 1099 or P&L program would have produced far more income, then declines on the calculation.

What I do

I run the income under multiple documentation methods before choosing. The program is a decision, not a default, and on these files it's the decision that matters most.

Why it dies

The deposit or income calculation came back short

A loan officer quoted gross deposits without backing out transfers, or applied a 50% expense factor where the borrower expected 15%.

What I do

I do the full analysis before you write an offer — every transfer out, the real expense factor, month by month. The number I give you holds up in underwriting.

Why it dies

Investor overlays on property or occupancy

Non-warrantable condo, rural acreage, mixed-use, a manufactured home, or a second-home occupancy on an investor-only program.

What I do

I check overlays against the specific property before we order an appraisal, and I keep multiple portfolio investors so one overlay doesn't end the deal.

Why it dies

Reserve requirements weren’t disclosed up front

The borrower planned for down payment and closing costs and gets asked for six months of reserves two weeks before closing.

What I do

The full cash requirement — down payment, costs, and reserves — is part of the first conversation, not a late surprise.

Why it dies

Credit events too recent for the program

A bankruptcy, foreclosure, or short sale inside the program's seasoning window. Portfolio seasoning is shorter than agency but it isn't zero.

What I do

I know each investor's seasoning requirements. Some will lend one day out of a completed bankruptcy at the right LTV — that's a matching problem, and matching is what I do.

Why it dies

The file was shopped and shopped

The borrower has four credit pulls and three declines from lenders guessing at portfolio guidelines they don't actually know.

What I do

One well-matched submission to the right investor beats several hopeful ones. If I don't think a file will close, I'll say so instead of running your credit to find out.

Already been denied somewhere else? Read what happened when other buyers brought me a dead file →

Keep going

Related reading.

Self-employed mortgages →Investment property loans →
Areas served

Where I close these loans.

Albany and the Capital Region are home — and I’m licensed across all of New York State.

AlbanyAltamontAverill Park & Sand LakeBallstonBallston SpaBethlehem & DelmarBolton LandingBrunswickCastleton-on-HudsonClifton ParkCohoesColonieCorinthEast GreenbushGlens FallsGlenvilleGreenfieldGuilderlandHalfmoonHoosick FallsLake GeorgeMaltaMechanicvilleMenandsMiltonMoreau & South Glens FallsNassauNiskayunaNorth GreenbushQueensburyRavena / CoeymansRensselaerRotterdamSaratoga SpringsSchenectadySchodackSchuylervilleScotiaStillwaterTroyVoorheesville & New ScotlandWarrensburgWaterfordWatervlietWiltonWynantskill

Don't see your town? Reach out — or see every Capital Region town.

Brian Marchand, Sr. Loan Consultant at New American Funding

Brian Marchand · Sr. Loan Consultant, New American Funding · NMLS #481563

Works on non-QM lending for buyers and homeowners in Albany, NY and the Capital Region. Licensed in New York State. New American Funding, NMLS #6606 · 18 Computer Dr E, Suite 103, Albany, NY 12205.

About Brian