Flexible Mortgage Options for
Non-Traditional Income Borrowers
Specialty Non-QM lending programs for contract and gig workers, investors, self-employed, and other non-traditional income borrowers.
Not everyone fits the traditional mold of a mortgage applicant – and that’s okay. At BankSouth Mortgage, we understand that income can come from more than just W‑2s from an employer. Non‑Qualified Mortgage (non‑QM) loans are designed for today’s dynamic borrowers: freelancers, small‑business owners, real‑estate investors, and people with unique financial profiles.
Who Non‑QM Loans Are For
- Self‑employed professionals and freelancers – graphic designers, writers, consultants, and contractors who rely on 1099 income.
- Gig‑economy workers – rideshare drivers, food‑delivery couriers, creatives, and other independent workers whose income fluctuates.
- Real‑estate investors – individuals purchasing rental properties or multifamily units who want to qualify based on rental income rather than personal income.
- Small‑business owners – entrepreneurs whose tax returns don’t tell the full story of their cash flow.
- High‑net‑worth retirees – borrowers with significant assets but lower monthly income who can leverage asset‑depletion programs to qualify.
- Borrowers with recent credit events – those recovering from a bankruptcy, foreclosure, or short sale who have re‑established credit.
Prefer to talk it through? Contact a Loan Officer to get started.
Our Non‑QM Loan Programs
Bank‑Statement Loans
Use 12–24 months of personal or business bank statements to verify income instead of W‑2s or tax returns. Great for freelancers and small‑business owners who have steady deposits but write off expenses on their taxes.
1099 Income Loans
Designed for independent contractors with a strong 1099 earnings history. We use your 1099s and bank‑statement deposits to calculate qualifying income.
Investor Cash‑Flow Loans (DSCR Loans)
Qualify based on the rental income generated by your investment property rather than your personal income. Financing may be available with interest‑only options and competitive rates.
Asset‑Qualifier Loans
Leverage liquid assets such as savings, retirement accounts or brokerage accounts to demonstrate your ability to repay. These programs are ideal for retirees or high‑net‑worth individuals with limited monthly income.
Interest‑Only Options
Interest‑only payment structures are available on many non‑QM programs, allowing borrowers to keep monthly payments lower during the initial years.
Why Choose BankSouth Mortgage?
- Local expertise & personalized solutions – Our loan officers understand their markets, loan programs, and borrowers and work with you one‑on‑one to tailor the right program.
- Flexible qualification – We look at your whole financial picture, including bank statements, 1099s, rental income, and assets.
- Competitive rates & high loan limits – Non‑QM interest rates are competitive and generally lower than private or hard‑money loans. Many programs offer high loan amounts and interest‑only payment options.
- Fast, digital application – With ReadyLoan®, you can apply online, upload documents securely, and track your loan’s progress from any device.
Sarah: Freelance Graphic Designer
Sarah runs a successful design business and receives 1099 income from multiple clients. Her tax returns show little net income because she deducts business expenses. Sarah used 24 months of bank statements to qualify for a non‑QM loan and purchase her first home.
David: Rideshare Entrepreneur
David drives for rideshare apps and earns a variable income each week. With a strong credit score and 12 months of bank deposits, he obtained a non‑QM loan that allowed him to buy a condo without traditional W‑2 documentation.
Lisa: Real‑Estate Investor
Lisa owns several rental properties. She qualified for a DSCR loan based on the rental income from a new duplex, allowing her to expand her portfolio without using her personal income for qualification.
What You Need to Qualify
- Credit History: Non‑QM borrowers typically have credit scores in the 700s. We review your credit and overall financial profile.
- Income Documentation: Depending on the program, you’ll provide bank statements, 1099s, rental income statements, asset statements, or a combination thereof.
- Down Payment: Down payment requirements vary by program but can be as low as 10–15 %. Higher down payments may result in more favorable terms.
- Assets & Reserves: Some programs require proof of cash reserves or liquid assets as part of the qualification.
Frequently Asked Questions (FAQ)
Are non‑QM loans subprime?
No. Non‑QM loans are fully regulated and designed for credit‑worthy borrowers who don’t fit conventional underwriting guidelines. Most borrowers have strong credit scores and demonstrate the ability to repay.
What credit score do I need?
While each program is different, credit scores in the mid‑600s and above are generally accepted. Higher scores may qualify you for better rates.
How much do I need for a down payment?
Down payments can be as low as 10–15 %, depending on the program, property type, and credit profile.
Are interest rates higher on non‑QM loans?
Non‑QM rates may be slightly higher than conventional loans to account for flexible documentation, but they are competitive and often lower than private or hard‑money lending.
Can I refinance into a conventional loan later?
Yes. Some borrowers use a non‑QM loan as a short‑term solution until they have the documentation needed for a conventional refinance.
Which documents will I need to provide?
Depending on the loan type, you’ll need 12–24 months of bank statements, 1099 forms, rental income documentation, or asset statements. Your loan officer will tell you everything you need based on your individual circumstances and personalized mortgage solution.
Ready to Explore Your Options?
Whether you’re a freelancer, entrepreneur, or seasoned investor, BankSouth Mortgage can help you find a path to homeownership. Click Apply Now to start your application or Schedule a Consultation to speak with a loan officer today.
If you’d like to learn more about preparing your finances as a self‑employed borrower or the benefits of non‑QM loans, check out these blog posts:
- How to Get Mortgage‑Ready When You’re Self‑Employed
- How Real Estate Agents and Builders Can Close More Deals with Flexible Loan Solutions
Still have questions? Call us at (678) 551-7120, or contact a loan officer to get started.
Prefer to talk it through? Contact a Loan Officer to get started.
BankSouth Mortgage Company, LLC, NMLS #690971 is not a bank or other depository institution and is not FDIC-insured.
BankSouth Mortgage Company, LLC is a wholly owned subsidiary of BankSouth, NMLS #688851, a federal savings bank and Member FDIC.
Alabama Consumer Credit License #MC 21415 DBA LoanSouth Mortgage.