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Currently, services provided in CA only

Think You Need a
Non-QM Loan?

We'll walk you through everything you need to know about Non-QM lending — no jargon, no runaround — so you can make an informed decision about your next move.

Serving borrowers across California who are ready to take the next step in homeownership.

Let's Go ↓

The Basics

What Is Non-QM
and Who Is It For?

1

Self-Employed Borrowers

Instead of tax returns, lenders may use:

  • Bank statements (12–24 months)
  • CPA letters
  • Profit & loss statements
2

Real Estate Investors (DSCR Loans)

  • Qualify based on property cash flow
  • No personal income required
  • Used heavily for rental properties
3

Higher Debt-to-Income Ratios

DTI above standard limits? Non-QM programs accommodate higher ratios so you can still get approved.

4

Recent Credit Events

  • Bankruptcy
  • Foreclosure
  • Short sale
5

Interest-Only Options

Some Non-QM lenders offer interest-only terms — perfect for investors maximizing cash flow.

Is this what you are looking for?

That's Me — Keep Going ↓

Why Non-QM?

Pros of Non-QM

Flexible Income Verification

Use bank statements, P&L, or CPA letters instead of W2s and tax returns.

Great for Self-Employed & Investors

Programs built specifically for how you actually earn money.

Close in LLC or Corp

Common with DSCR loans — protect your assets by purchasing through your business entity.

Higher Loan Limits Available

Loan amounts up to $4M for primary, second homes, and investment properties.

Let's Talk About Rates

Understanding Your
Rate & Costs

Straightforward. No hidden fees.

1

What Is the Note Rate?

The note rate is the interest rate used to calculate your monthly mortgage payment. It does not include lender fees, points, or closing costs.

2

What Is APR?

APR (Annual Percentage Rate) reflects the true cost of borrowing by combining the note rate with lender fees, points, and certain closing costs, spread over the life of the loan.

3

Why APR Is Higher on Non-QM & DSCR

These loans typically carry higher APRs because they involve alternative income documentation, investor-focused underwriting, and higher capital risk for lenders.

4

What Is Amortization?

Amortization shows how each monthly payment is split between interest and principal. Early payments are interest-heavy, with principal reduction increasing over time.

Now let's break it down.

The Numbers
That Matter.

Key Concept

LTV — Loan-to-Value

LTV = Loan Amount Property Value

Example

Home value is $500,000.

You're borrowing $400,000.

That's 80% LTV. The lower that number, the better your rate.

Why LTV Matters

LTV affects:

  • Interest rate
  • Mortgage insurance requirement
  • Loan approval
  • Cash-out limits on refinances
  • Investor pricing (LLPAs)
Lower LTV (60–75%)
  • Larger down payment (purchase)
  • Lower risk to lender
  • Better rate
Higher LTV (90–97%)
  • Smaller down payment (purchase)
  • Higher risk to lender
  • Usually higher rate

Key Concept

DTI — Debt-to-Income

DTI = PITI + Debts Gross Income

Example

Gross income $10,000/month.

Total monthly debts $4,000.

That's 40% DTI. Lenders want to see that number as low as possible.

Why DTI Matters

  • Higher DTI = Higher risk to lender
  • Impacts approval
  • Impacts interest rate
  • Impacts how much you qualify for
1️⃣ Front-End DTI (Housing Ratio)

Only includes housing expenses:

  • Principal & Interest
  • Property Taxes
  • Insurance
  • HOA (if applicable)
2️⃣ Back-End DTI (Total DTI)

Includes everything above plus:

  • Car loans
  • Credit cards
  • Student loans
  • Personal loans
  • Child support / alimony

Lenders care more about back-end DTI.

Crunch the Numbers

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Principal & Interest only. Does not include taxes, insurance, or HOA.

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Understanding
Loan Fees

Loan Origination Fee

The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.

Paying 1 point only in origination + processing fee + lender fees.
Does not include third-party fees.

Common Third-Party Fees

Appraisal Fee

Paid to a licensed appraiser to determine the home's market value.

Title & Escrow Fees

Title search (liens/ownership), title insurance (protects lender/buyer), and escrow/closing services.

Credit Report Fee

Covers the cost of pulling your credit report.

Home Inspection Fee

Paid to an inspector to evaluate the property condition. (Purchase only.)

Recording Fees

Paid to the county to officially record the new deed or mortgage.

Survey Fee

Confirms property boundaries. (If required.)

Flood Certification Fee

Verifies whether the property is in a flood zone.

HOA Transfer Fees

Paid to the HOA for documents or ownership transfer. (If applicable.)

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