Non-QM isn’t a single loan—it’s a category of flexible mortgage options for borrowers who don’t fit into the standard agency box. And for brokers and loan officers, knowing how to match the right borrower to the right non-QM product is key to unlocking new business.
Whether your borrower is self-employed, investment-focused, credit-challenged, or retired, there’s likely a loan that fits. This guide breaks down common borrower profiles and how to pair them with the right non-QM solution—plus how Morty helps you make the match, fast.
Understanding non-QM
A non-QM (non-qualified mortgage) is a home loan that doesn’t meet the strict criteria of a qualified mortgage, such as standard DTI caps, Appendix Q income documentation, or QM safe harbor requirements.
But that doesn’t mean it’s risky—it just means the borrower’s story requires more flexibility.
Morty supports a growing suite of non-QM products, including:
- Bank statement loans
- Interest-only mortgages
- Reverse mortgages
- Asset depletion programs
- Loans for borrowers with recent credit events
Matching borrowers to non-QM solutions
Not every borrower fits a traditional mold—and that’s where non-QM comes in. Here’s how to think about product fit based on borrower profile:
🧾 The self-employed borrower
Challenge: Strong income, but AGI reduced by deductions
Solution: Bank statement loan
Why it works: Qualifies using 12–24 months of deposits, not tax returns
💰 The investor focused on cash flow
Challenge: Wants to maximize rental income or deploy capital elsewhere
Solution: Interest-only mortgage
Why it works: Lowers monthly payments during hold period, increases cash flow
👵 The retiree with equity, not income
Challenge: No traditional income, needs access to cash or wants to eliminate payments
Solution: Reverse mortgage
Why it works: Converts home equity into cash with no monthly mortgage required
⚠️ The borrower with recent credit events
Challenge: Bankruptcy, foreclosure, or late payments in recent history
Solution: Manual underwrite or alt-doc loan
Why it works: Flexibility on credit with strong compensating factors (reserves, LTV)
📊 The asset-rich, income-light borrower
Challenge: High net worth, low taxable income
Solution: Asset depletion or asset-based loan
Why it works: Uses retirement or investment balances to generate qualifying income
Borrower scenarios: What non-QM looks like in action
The self-employed buyer with strong cash flow leverages a bank statement loan to qualify based on real deposits
Your client is a freelance consultant bringing in $200,000+ annually, but after deductions, their AGI is under $70,000. They’ve been denied by a traditional lender and are now looking to buy a $750,000 home with 20% down.
- Matched with: Bank statement loan
- Why it’s a good fit: Uses 12–24 months of deposits rather than tax returns. Morty walks you through the statement intake and submission process.
The retiree with equity but no income taps into home value through a reverse mortgage
A 70-year-old borrower owns a $900,000 home outright. They want to eliminate property tax debt and secure cash flow without selling or taking on payments. Income is limited to Social Security.
- Matched with: Reverse mortgage
- Why it’s a good fit: No monthly mortgage payments and access to tax-free proceeds while staying in the home. Great for aging in place or supplementing retirement income.
Frequently asked questions
How long does it take to close a non-QM deal?
With Morty, many non-QM loans—including bank statement and reverse—can close in under 3 weeks. Our fulfillment team is trained on these products and helps move files quickly from intake to close.
Do I need to specialize in non-QM to offer these products?
No. Morty’s platform, AI tools, and support teams help you navigate product fit, lender guidelines, and workflows—so you don’t have to be an expert.
Are non-QM loans harder to close?
They require different documentation, but with Morty’s help, the process is streamlined. Our fulfillment team handles income validation, disclosures, and overlays.
Will non-QM loans hurt my borrower’s credit or cost more?
Non-QM rates are often slightly higher than agency loans—but they give access to financing borrowers wouldn’t otherwise qualify for. For many, they’re the only viable path to homeownership or liquidity.
How Morty helps brokers navigate non-QM
Morty takes the guesswork out of product matching by combining tech and operational support:
- Smart intake through Morty’s POS
Borrowers submit upfront info like income type, assets, and goals. - Rosey AI for real-time product guidance
Understand which products fit your borrower and which docs you’ll need. - Processing and fulfillment team support
We understand lender overlays, reverse product requirements, and documentation rules—so you don’t have to become an expert overnight. - Direct access to non-QM lenders
Morty’s lender network includes providers of bank statement, IO, reverse, and other flexible loan options.
Start matching smarter
Non-QM loans let you serve more clients and win business others walk away from—but only if you can quickly identify the right fit.
With Morty, you don’t have to memorize guidelines or second-guess your product choice. Our platform makes it easy to qualify borrowers and close more deals.
