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Non-QM Loan Programs

Flexible financing solutions for entrepreneurs, investors, and non-traditional borrowers.

At Scout Lending, we know that not everyone fits the standard lending mold, and that’s a good thing. Our Non-QM (Non-Qualified Mortgage) Loan Programs are designed specifically for self-employed professionals, real estate investors, and high-asset individuals who need smarter, more flexible ways to qualify for a mortgage. These loan programs look beyond W-2s and traditional tax returns, focusing instead on bank statements, rental income, assets, or alternative documentation to help you move forward with confidence. Whether you’re buying, refinancing, or expanding your portfolio, we’ll help you find the Non-QM loan that fits your story.

DSCR (Debt Service Coverage Ratio) Loans

Invest based on cash flow, not your personal income.

DSCR loans are built with real estate investors in mind. Instead of focusing on your personal income, we look at the income-producing potential of the property. The loan is underwritten based on whether the monthly rent covers the mortgage payment, typically using a DSCR ratio of 1.0 or higher. If the property can sustain itself, you’re good to go. No tax returns, no income documentation, no employment history required.

Why Our Clients Love It:

  • Cuts through financial complexity: Our investor clients love that they can qualify based on the strength of the asset, not their adjusted gross income.
  • Speeds up the process: DSCR loans eliminate the need for personal financial reviews, allowing for faster closings, fewer conditions, and more investment opportunities.
  • Fuels portfolio growth: Whether you’re buying your first duplex or your tenth rental, this loan helps you scale efficiently without overextending yourself financially.
  • Supports long-term strategy: Many clients use DSCR loans to build passive income, diversify holdings, and reduce personal financial exposure

Who It’s Best For:

  • Real estate investors building a portfolio of income properties: If you’re scaling your rental empire and want to qualify based on rental income, not your job or business income, DSCR loans are built for you.
  • Self-employed or high-net-worth individuals with complex taxes: If your tax returns don’t reflect your true income due to write-offs or business structure, this loan allows your investment property to speak for itself.
  • Borrowers looking to close fast with minimal documentation: DSCR loans often require less paperwork and no personal income verification. Ideal for experienced investors who want speed, not stress.

12-Month Business Bank Statement Loans

Leverage your business income your way.

Instead of combing through your tax returns, this program uses your last 12 months of business bank statements to calculate monthly income. We average your monthly deposits to determine your eligibility; no need for complicated P&L statements or years of returns. This method allows you to leverage your actual business performance.

Why Our Clients Love It:

  • Real-world validation: Business owners love that this method reflects the true strength of their enterprise, not what’s left after deductions.
  • Protects tax strategy: You don’t have to sacrifice deductions or refile returns just to qualify.
  • Fits how business owners operate: The process respects the seasonal, project-based, or cyclical nature of many businesses.
  • Helps retain working capital: With flexible down payment options and more lenient reserves, it helps preserve cash flow for day-to-day operations and growth.

Who It’s Best For:

  • Self-employed borrowers with healthy cash flow but high write-offs: If your profit-and-loss looks low on paper but your business is thriving, this program gives you credit where credit is due.
  • Business owners buying or refinancing primary or investment properties: Whether you're expanding or upgrading, this loan puts your business income to work for you without jumping through traditional hoops.
  • Entrepreneurs looking for flexibility in documentation and approval: Bank statement loans simplify the process and allow you to show your true income potential with real-world financial activity.

12-Month Personal Bank Statement Loans

Your personal deposits. Your loan qualification.

This program uses your personal bank statements to verify income over the past 12 months. It’s especially ideal for freelancers, gig workers, and sole proprietors who receive income from multiple sources. If your deposits are steady and show financial capacity, you can qualify with no traditional employment verification needed.

Why Our Clients Love It:

  • Respects modern income models: Whether you’re an influencer, content creator, online seller, or independent contractor, this program understands how the new economy works.
  • Simplifies documentation: Clients love how easy it is to gather and submit personal bank records with no stress, no deep audits.
  • Supports side hustlers and blended earners: If your income comes from a mix of platforms, this loan treats your deposits as legitimate income and works in your favor.
  • Keeps the focus on you: The process is personalized and supportive, not rigid or dismissive.

Who It’s Best For:

  • Independent contractors, freelancers, or gig workers: If you earn through various sources and don’t receive traditional pay stubs, this program helps translate your deposits into approved income.
  • Borrowers who operate as sole proprietors or mix personal and business funds: If your business income flows into your personal account, you can still qualify without restructuring everything.
  • Homebuyers or refinancers seeking a custom-fit loan solution: This product lets your lifestyle work for you, especially when your income story doesn’t fit inside a standard box.

1099-Only Loans

Simple income qualification for contract workers and commission earners.

This program allows borrowers to qualify using just their 1099 forms with no tax returns or additional financial documents required. We assess your income based on the current and previous year’s 1099s, making it one of the fastest and most streamlined paths to mortgage approval for independent earners.

Why Our Clients Love It:

  • Built for high earners without W-2s: If you're in sales, consulting, real estate, or gig work, this lets you qualify without changing how you work.
  • Time-saving and stress-free: Less paperwork, fewer conditions, and no income verification beyond your 1099s.
  • Ideal for variable or commission-based income: It’s designed to respect the peaks and valleys of self-managed income.
  • Lets you focus on your next deal, not your last tax return.

Who It’s Best For:

  • Real estate agents, commission-based professionals, or consultants: If your income is high but inconsistent month to month, this loan helps smooth out the approval process.
  • Independent workers without W-2s or formal payroll: Your work is legitimate and profitable, you just need a lender who understands that.
  • Borrowers tired of jumping through tax-return hoops: Skip the long documentation trail and qualify using what matters most: your verified income.

Asset Depletion Loans

Let your savings work as your income.

Rather than requiring traditional income, this program allows borrowers to use their liquid assets, such as savings accounts, investment portfolios, or retirement funds, to qualify. A formula is applied to determine how much monthly income your assets can theoretically produce, and this figure is used for underwriting.

Why Our Clients Love It:

  • Perfect for retirees and high-net-worth individuals: You’ve already built your wealth. Now, it works for you.
  • Avoids the need to liquidate or restructure assets: You don’t have to sell investments or trigger taxes to qualify.
  • Maintains financial independence: This loan respects your financial success and offers home financing without ongoing employment.
  • Flexible, dignified, and tailored to your reality, not the bank’s rules.

Who It’s Best For:

  • Retirees with significant assets but limited income: You’ve saved wisely, and this loan helps you use those funds to qualify without relying on Social Security or pension income.
  • High-net-worth borrowers with low taxable income: If your assets are substantial but structured in a tax-advantaged way, this program bridges the gap and gets you approved.
  • Buyers or refinancers who want to preserve liquidity: Asset depletion loans let you retain control over your funds while still leveraging them for real estate goals.

Interest-Only Loans

Lower monthly payments. Greater cash flow control.

Interest-only loans allow you to pay only the interest on your mortgage for an initial term, typically 5 to 10 years. After that, the loan converts to a fully amortized structure. This keeps payments low during the early years of ownership or investment, freeing up cash for other uses.

Why Our Clients Love It:

  • Maximizes monthly cash flow: You can redirect funds toward renovations, investments, or business expansion.
  • Strategic for short-term ownership: Perfect for flippers, developers, or borrowers planning to sell or refinance within a few years.
  • Ideal for income flexibility: If your earnings are seasonal or bonus-based, this loan gives you control over when and how you pay down the balance.
  • Empowering is in the hands of experienced borrowers who know how to make their money work.

Who It’s Best For:

  • Investors looking to maximize monthly cash flow: By lowering the payment during the interest-only period, you free up capital for reinvestment or property improvements.
  • High-income borrowers with liquidity strategies: If your income is variable or tied to large bonuses, this structure can provide timing flexibility.
  • Short-term holders or flippers: If you’re planning to sell, refinance, or reposition the property within a few years, interest-only payments can help you stay lean while you execute your plan.

ITIN Loans

Homeownership for borrowers without a Social Security Number.

This program is designed for clients who do not have a Social Security Number but pay U.S. taxes using an Individual Taxpayer Identification Number (ITIN). These borrowers can still qualify for competitive mortgage terms using verifiable income, credit, and legal documentation.

Why Our Clients Love It:

  • Makes homeownership accessible for more immigrant families: A Social Security Number shouldn’t be the only path to stability.
  • Recognizes your contributions and financial responsibility: You’ve worked hard, paid taxes, and built credit—this loan gives you the respect you deserve.
  • Flexible options for W-2, 1099, or self-employed ITIN holders: No matter how you earn, we’ll help you find a fit.
  • A step toward generational wealth and housing security.

Who It’s Best For:

  • Immigrant families building a life in the U.S.: If you’ve paid taxes and built financial stability, this loan can help you take the next step toward homeownership.
  • ITIN holders with strong income and credit: If your credit history is solid, even without a Social Security Number, you still have lending options through Scout Lending.
  • Self-employed or W-2 ITIN workers ready to buy: Whether you earn through a business or as an employee, this program helps bring homeownership within reach.
CONTACT US

Let’s Make Your Homeownership Goals Happen

Whether you’re ready to start your loan application, have questions about your options, or just want to talk through your financial goals, we’re here for you. Reach out to our team for personalized support and expert guidance every step of the way.

NMLS #2187418. Go here for the Scout Lending NMLS consumer access page.

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