Non-QM Refinance · Licensed in NJ · CT · FL · NMLS #1630225
Non-QM Refinance — Bank Statement, DSCR, Asset, and 1099 Programs
A Non-QM refinance is decided by the documents you can produce. Same credit score, different paperwork, different terms — which lane your file lands in moves your rate and how much equity you can pull out. Settle that first, before anyone orders an appraisal.
Last updated August 2026 · reviewed by a licensed mortgage broker
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What Is a Non-QM Refinance Loan?
A Non-QM refinance loan is a rate-and-term or cash-out refinance underwritten outside the standard tax-return-and-pay-stub box that most banks require. Instead of two years of tax returns, your refinance file can be built around bank statements, 1099s, a CPA-prepared profit and loss statement, liquid assets, or the rent a property is expected to collect. Minimum credit scores start at 600, refinance loan amounts run from $100,000 up to $3.5 million depending on the program, and condos, 2-4 unit properties, and non-warrantable buildings are eligible on most tiers.
These loans still go through full underwriting for a refinance transaction; the paperwork just changes to match how you’re actually paid. A licensed loan officer reviews your credit depth, your reserves, the property type, and the appraisal, since those pieces carry more weight once income isn’t shown on a W-2. If you’re self-employed, a landlord, retired and living off assets, or new to the country, a Non-QM refinance loan is often the fastest path to a lower rate, a shorter term, or cash in hand that a conventional lender would slow-walk or turn down outright.
Program Requirements
Non-QM Refinance Programs, Credit Scores & Maximum LTV
Every Non-QM refinance loan qualifies you a different way. Here’s the minimum credit score and maximum loan-to-value (LTV) for each refinance program we place most often. Your actual terms depend on your full file, property type, and reserves.
| Program | Min. Credit Score | Rate/Term Max LTV | Cash-Out Max LTV |
|---|---|---|---|
| Full Doc Non-QM | 600 | Up to 85% at 700+ score | Up to 80% |
| 1099 Only | 600 | Up to 85%; 2 months of recent bank statements required | Up to 80%; $3.0M max loan amount |
| Written VOE (WVOE) Only | 620 | Up to 80% | Up to 70% |
| Asset Utilization | 660 | Up to 80% | Up to 75%; $2.0M max loan amount |
| Bank Statement Loans | 600 | Up to 85% at 700+ score | Up to 80% |
| P&L Only | 660 | Up to 80%; $2.5M max loan amount | Up to 80% |
| P&L Plus 3 Months Bank Statements | 660 | Up to 80% | Up to 75% |
| One-Year Self-Employment | 660 | Up to 80%; income from bank statements only | Up to 75% |
| Assets as Blended Income | 660 | Up to 80% | Up to 75% |
| DSCR Loans (Investment Refinance) | None at ≤55% LTV 600 above 55% LTV |
Up to 85% | Up to 80% |
| ITIN Loans | 660 | Up to 85% | Up to 65%; $1.0M max loan amount above 80% LTV |
| Foreign National (Investment Refinance) | No FICO required | Up to 75%, DSCR-based | Up to 70% |
| No Income Verification (Primary Residence Refinance) | 620 | Up to 80% | Up to 75% |
Guidelines reflect general program terms as of July 2026 and are not a quote or a commitment to lend. Property type, loan amount, and reserves can move what’s actually offered on your refinance.
Why This Matters
Why Homeowners Choose Non-QM Refinance Loans
Most homeowners who end up on a Non-QM refinance loan aren’t credit-challenged; they’re just documented differently than a W-2 employee. A business owner who writes off vehicles and equipment, a retiree drawing from a brokerage account instead of a paycheck, and a commissioned salesperson whose income swings year to year all look thin on paper at a conventional bank, even when their credit and equity tell a stronger story. Non-QM underwriting was built around that exact gap, and it’s grown into one of the fastest-moving corners of the refinance market as more lenders recognize how common this borrower profile has become. According to the CFPB’s refinancing guidance, understanding which documents a lender will actually require is one of the biggest factors in whether a refinance closes on time, and that’s especially true once tax returns leave the picture.
What Underwriters Actually Review
Because personal income documents step back, everything else steps forward on a refinance file. Credit typically needs two tradelines reporting for 12 or more months, or one tradeline reporting for 24 or more months with recent activity, which lines up with how Fannie Mae documents borrower assets on conventional files. Mortgage history generally follows a 0x30x12 standard, meaning no late payment in the trailing twelve months, and a prior forbearance, foreclosure, short sale, or bankruptcy typically needs 12 to 48 months of seasoning behind it depending on the program and severity. Cash-out proceeds are capped based on your LTV and credit score, generally from $500,000 up to $1.5 million or more on the strongest files, and equity, reserves, and property type carry extra weight once income documentation is lighter.
For Investors
DSCR Refinance Loans: Refinance Investment Property on Rental Income
A DSCR refinance loan qualifies an investment property refinance off the income the property generates instead of your personal tax returns or pay stubs. DSCR stands for debt service coverage ratio, calculated by dividing the property’s gross rental income by its total housing payment. A ratio of 1.00 means the rent covers the mortgage; above 1.00 means it cash flows. This makes DSCR refinance loans a natural fit for landlords, short-term rental owners, and out-of-state investors pulling equity or lowering a rate without tying the loan to their personal income. Investment properties only, 1-4 units, are eligible on this program.
Standard Program: Credit Score & LTV Tiers
| Credit Score | Rate/Term | Cash-Out |
|---|---|---|
| 720+ | 85% | 80% |
| 700+ | 80% | 75% |
| 680+ | 80% | 75% |
| 640+ | 75% | 70% |
| 620+ | 70% | 65% |
| 600+ | 65% | 60% |
Standard Program requires a minimum 1.00 DSCR ratio (1.20 above 80% LTV). Based on a representative loan amount; higher amounts adjust tiers.
Beyond the Standard Program
A handful of DSCR variations cover investors whose refinance doesn’t fit that grid. A Reduced-Ratio DSCR option accepts a ratio as low as 0.75, useful when a property doesn’t quite cash flow to a full 1.00 but the refinance still makes sense on paper. A No Ratio DSCR option skips the ratio requirement entirely and qualifies a refinance purely on credit and LTV, which is common on vacation rentals with seasonal income swings. A DSCR Plus Assets option blends the rental income with your liquid assets to boost an initial ratio between 0.75 and 0.99 up to a qualifying 1.15. And a Foreign National DSCR option lets non-U.S. citizens refinance investment property with no FICO score required in some cases, typically capped between 55% and 75% LTV depending on credit history and loan amount, with cash-out proceeds allowed after 12 months of ownership.
For Primary Residences
No Income Verification Refinance Loans for Primary Residences
A no income verification refinance loan is built for a homeowner who can’t or doesn’t want to document income at all, no bank statements, no tax returns, no employment verification. Approval leans entirely on credit, reserves, and equity. This program covers a primary residence or second home refinance, and loan amounts run from $100,000 up to $3 million. Fixed and adjustable rates are both offered; interest-only is not permitted on this program, so the balance comes down from the first payment.
Rate/Term Refinance Tiers
| LTV / CLTV | Min. Credit Score | Reserves |
|---|---|---|
| 80% / 80% | 720 | 9 months |
| 75% / 75% | 680 | 6 months |
| 70% / 70% | 660 | 6 months |
| 65% / 65% | 620 | 6 months |
Cash-Out Refinance Tiers
| LTV / CLTV | Min. Credit Score | Reserves |
|---|---|---|
| 75% / 75% | 700 | 9 months |
| 70% / 70% | 680 | 6 months |
| 65% / 65% | 660 | 6 months |
| 60% / 60% | 620 | 6 months |
Credit still matters here, just in a different way. Mortgage history needs to run 0x30x12, and a prior foreclosure or short sale needs 24 months of seasoning, with the same 24-month standard applying after a bankruptcy discharge. Assets need to be sourced and seasoned for 30 days, and a borrower must be a U.S. citizen, a permanent resident alien, or a non-permanent resident alien with established U.S. credit. Single-family homes, PUDs, condos, 2-4 units, modular, and rural homes are all eligible, though log homes and manufactured homes are not, and seller concessions up to 6% are allowed toward closing costs.
Full Picture
What Affects Your Non-QM Refinance Approval
Your income documentation type sets the program, but these four areas decide whether your refinance file clears underwriting.
- 600 minimum credit score on most programs, 620 on no income verification
- Two tradelines 12+ months, or one tradeline 24+ months with recent activity
- 0x30x12 mortgage history standard on most programs
- 12 to 48 months seasoning after a foreclosure, short sale, or bankruptcy
- Primary residence, second home, and investment property all eligible
- SFR, PUD, 2-4 unit, and warrantable condos eligible on most tiers
- Non-warrantable condos are capped at a reduced LTV
- Log homes and manufactured homes are generally not eligible
- Cash-out proceeds generally range from $500,000 up to $1.5 million based on LTV and credit
- Reserves run 0-12 months depending on loan amount, LTV, and occupancy
- Most cash-out programs require at least 6 months of ownership seasoning
- Gift funds allowed on most programs, subject to an LTV adjustment
- $100,000 to $3.5 million refinance loan amounts, program dependent
- $3 million maximum on no income verification refinance loans
- 15-, 30-, and 40-year fixed terms available on most programs
- Rate-and-term and cash-out refinances both qualify on most tiers
How It Works
How a Non-QM Refinance Works
Self-employed, retired, an investor, or new to the country — we match your situation to the refinance program built for it, not the other way around.
We match your credit score, equity, and property type against the grids above and confirm exactly what LTV and loan amount you qualify for.
A rate tied to your actual refinance file, no guesswork, with the option to lock once you’re ready to move forward.
Most callers already know roughly what their home is worth, what they earn or what a rental would collect, and how much cash they’d like out, so one phone call is usually enough to confirm your tier. If a bank turned you down because your tax returns didn’t reflect what you actually earn, or because the property wasn’t warrantable, that’s a sign you were talking to the wrong lender, not that your refinance is out of reach.
Before You Start
What Happens After You Apply
- You send the application
A few minutes online. No documents at this stage.
- A licensed loan officer calls you
Someone on our team covering your state.
- We ask for documents and pull credit
Only once you have decided to move forward.
- You get an approval to shop with
Typically back within the hour.
What Clients Say
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Common Questions Answered
Common Questions About Non-QM Refinance
Related Non-QM pages: Non-QM loans overview · Non-QM purchase loans · bank statement loans · DSCR investor loans.
Related Resources
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- 2017
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Find out which Non-QM refinance program your file fits
A licensed loan officer looks at how you are paid, what kind of property it is, and how much equity you are working with, then tells you which programs are open and what each one asks for. If a conventional refinance would serve you better, you will hear that instead.
Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author