What is a Non-QM Refinance Loan?
A Non-QM (Non-Qualified Mortgage) Refinance is designed for homeowners who may not meet the strict income verification or credit requirements of traditional refinancing options. Whether you’re self-employed, an investor, or have complex financial circumstances, a Non-QM refinance can help you lower your mortgage rate, access home equity, or secure better loan terms without relying on traditional income documentation.
A Non-QM Refinance Loan allows homeowners to refinance their mortgage using alternative income documentation, such as bank statements, assets, rental income, or profit and loss statements, instead of tax returns or W-2s.
Unlike conventional loans that follow Fannie Mae and Freddie Mac guidelines, Non-QM loans provide more flexible underwriting criteria, making them ideal for self-employed individuals, real estate investors, and borrowers with non-traditional income sources.
How Does a Non-QM Refinance Loan Work?
A Non-QM Refinance replaces your current mortgage with a new loan that offers better terms, a lower rate, or access to home equity, without requiring traditional income verification.
Instead of W-2s or tax returns, lenders assess:
✔12-24 months of bank statements (for self-employed borrowers).
✔Profit and loss (P&L) statements (for business owners).
✔Rental income (for real estate investors using DSCR loans).
✔Liquid assets (for asset-based lending qualification). This flexibility allows borrowers to
refinance with ease, even if they don’t fit traditional lending requirements.
Qualifications for a Non-QM Refinance Loan
✅Credit Score:
600+ for most lenders (some allow lower scores with compensating factors).
✅Debt-to-Income (DTI) Ratio:
Higher DTI limits (up to 55%) allowed compared to traditional loans.
✅Loan-to-Value (LTV) Ratio:
Up to 80%-90% financing available, depending on loan type.
✅Property Type Eligibility:
Available for primary residences, second homes, and investment properties.
✅Cash Reserves:
Most lenders require 3-12 months of mortgage payments in reserves.
Is a Non-QM Refinance Loan Right for You?
A Non-QM Refinance Loan provides exclusive benefits for borrowers who don’t meet conventional loan requirements but still want to secure a lower interest rate, better terms, or cash-out financing.
Non-QM Refinance Loan Benefits at a Glance:
✅ Flexible income verification – No W-2s or tax returns required.
✅ Higher DTI allowances for borrowers with strong compensating factors.
✅Cash-out options for self-employed borrowers and investors.
✅Available for primary residences, vacation homes, and investment properties.
At Acre Lending Team, we specialize in helping borrowers refinance their homes with flexible Non-QM options. Whether you're self-employed, an investor, or have unique financial circumstances, we’re here to guide you through the process.
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