Not every borrower fits traditional mortgage qualification guidelines. Self-employed professionals, business owners, real estate investors, and borrowers with substantial assets may need financing options that consider more than conventional income documentation.
At Redwood Mortgage Services, we help qualified borrowers in Annapolis, Anne Arundel County, and throughout Maryland explore Non-QM mortgage programs, including bank statement loans, asset-based qualification options, and eligible investment property financing.
Whether you're purchasing a primary residence, refinancing, or exploring financing for an investment property, Stuart Kiehne, President (NMLS #92008) and the Redwood Mortgage Services team can help you compare available programs and understand the requirements that apply to your situation.
All loans subject to approval.
A Non-Qualified Mortgage (Non-QM) is a mortgage that does not meet all the federal requirements for classification as a Qualified Mortgage (QM). Non-QM loans may provide alternative qualification options for borrowers whose financial circumstances do not fit traditional mortgage underwriting guidelines.
These programs may consider bank statements, assets, rental property cash flow, or other eligible documentation, depending on the loan program.
Non-QM loans are not automatically riskier or less regulated simply because they fall outside the Qualified Mortgage category. Lenders must follow applicable lending requirements, and borrowers must meet the qualification standards of the specific program.
At Redwood Mortgage Services, we help borrowers in Annapolis, Anne Arundel County, and throughout Maryland explore Non-QM financing for eligible home purchases, refinances, and investment properties.
Who Do Non-QM Loans Help?
Non-QM mortgage programs may be appropriate for borrowers whose income, assets, or financing needs do not fit traditional mortgage qualification guidelines.
- Self-employed borrowers: Business owners and independent professionals who may qualify using eligible personal or business bank statements instead of traditional income documentation.Learn more about our Bank Statement Mortgage Loans in Maryland.
- Borrowers with substantial assets: Individuals who may qualify through eligible asset-based income calculations or asset depletion programs.
- Real estate investors: Borrowers purchasing or refinancing eligible rental properties who may qualify through DSCR or other investment property financing programs.
- Foreign national borrowers: Eligible international buyers seeking financing for qualifying U.S. properties, subject to program requirements.
- Borrowers with previous credit challenges: Individuals with prior bankruptcies, foreclosures, or other credit events who may qualify under certain Non-QM guidelines.
Eligibility, documentation, down payment requirements, rates, and loan terms vary by program and borrower qualifications.
Documentation Requirements
Documentation requirements vary depending on the Non-QM loan program, property type, and borrower's financial circumstances.
Depending on the program, eligible documentation may include personal or business bank statements, tax returns, investment or retirement account statements, rental income information, or other financial records.
For certain investment property loans, lenders may evaluate the property's rental income and debt service coverage ratio (DSCR) rather than relying primarily on the borrower's personal employment income.
All borrowers must meet the applicable program's qualification and documentation requirements. Consumer-purpose mortgage loans are also subject to applicable ability-to-repay rules.
Non-QM mortgage rates and terms vary based on the loan program, borrower qualifications, property type, and market conditions. While these loans may have different pricing and documentation requirements than conventional mortgages, they can provide financing options for borrowers whose financial circumstances do not fit traditional lending guidelines.
Non-QM Loans in Maryland
Redwood Mortgage Services helps qualified borrowers in Annapolis, Anne Arundel County and throughout Maryland explore Non-QM financing when traditional mortgage guidelines may not fit their financial circumstances.
Whether you're self-employed, have substantial assets or are financing an investment property, we can help you review available loan programs and understand the documentation and qualification requirements that may apply.
Redwood Mortgage Services also serves borrowers in Delaware, Virginia, Washington, DC, North Carolina and Florida.
Flexible Income
Eligible programs may use bank statements, assets, or other alternative income documentation.
No Mortgage Insurance
Many Non-QM programs do not require monthly private mortgage insurance. Other loan costs may apply.
Entity Lending
Certain business-purpose investment property programs may permit financing through eligible LLCs or other legal entities.
Frequently Asked Questions About Non-QM Loans in Maryland
A Non-Qualified Mortgage (Non-QM) does not meet all the federal criteria for classification as a Qualified Mortgage (QM). Non-QM programs may offer alternative methods of evaluating income, assets, or other borrower qualifications.
Conventional mortgages generally use more standardized underwriting guidelines and income documentation. Some conventional mortgages are also non-conforming, so the terms are not interchangeable.
At Redwood Mortgage Services, we help Maryland borrowers compare available mortgage options based on their financial circumstances, property type, and financing goals.
Yes. Certain Non-QM mortgage programs allow eligible self-employed borrowers to qualify using personal or business bank statements rather than relying exclusively on traditional tax-return income calculations.
Depending on the program, lenders may review 12 or 24 months of bank statements, business expenses, credit history, assets, and other financial information.
Redwood Mortgage Services helps self-employed borrowers in Annapolis, Anne Arundel County, and throughout Maryland explore available bank statement mortgage options.
Yes. Certain Non-QM and business-purpose investment property loan programs may provide financing for eligible rental properties in Maryland.
For example, Debt Service Coverage Ratio (DSCR) loans may evaluate a property's rental income relative to its mortgage obligations rather than relying primarily on the borrower's personal employment income.
Loan eligibility depends on the property, rental income, credit profile, down payment, and specific program requirements. Redwood Mortgage Services can help real estate investors explore available financing options.
Non-QM down payment requirements vary depending on the loan program, property type, credit profile, and borrower qualifications.
Some programs may allow lower down payments for well-qualified borrowers, while investment property loans, borrowers with recent credit events, or other specialized financing programs may require more substantial down payments.
Redwood Mortgage Services can help you compare available programs and estimate your down payment, closing costs, and total cash needed before moving forward.
Non-QM mortgage rates may be higher than rates available through certain conventional loan programs because of differences in underwriting requirements, documentation, loan structure, and risk characteristics.
However, rates vary based on the loan program, credit profile, down payment, property type, market conditions, and other factors.
When comparing financing options, borrowers should consider the interest rate, monthly payment, closing costs, loan terms, and overall cost of borrowing—not just the advertised rate.
Possibly. Certain Non-QM mortgage programs may offer more flexible guidelines for eligible borrowers with previous bankruptcies, foreclosures, or other significant credit events.
Required waiting periods, credit score standards, down payments, and documentation vary by program. Approval is not automatic, and borrowers must meet applicable underwriting requirements.
Redwood Mortgage Services can help Maryland borrowers review their current financial circumstances and explore available financing options following previous credit challenges.
Non-QM loans provide mortgage funding for those with non-traditional income or financial situations. Depending on the loan program and borrower qualifications, Non-QM financing may be available for primary residences, refinancing, cash-out refinances, and investment properties. Fixed-rate and adjustable-rate options may be available. Closing timelines vary based on the lender, documentation requirements, and individual transaction.