Bluerate: How to Get a Non-QM Loan? Everything to Learn

Have you ever faced the frustration of having a solid income but being rejected by a bank simply because you don’t fit into their standard “box”? I’ve been there. That’s exactly what a Non-QM (Non-Qualified Mortgage) loan solves. Unlike traditional loans that rely heavily on tax returns and strict government guidelines, Non-QM loans offer flexibility for self-employed individuals, real estate investors, and those with unique financial situations.

In this guide, I will walk you through the entire process of securing one. If you want to skip the guesswork and get straight to the facts, you can directly contact a Bluerate Non-QM loan officer for a free, no-obligation consultation.

What are non-QM Loan Requirements?

Many people mistakenly think Non-QM loans are the same as the “subprime” loans from the past, but that isn’t true. Based on current lending standards, these are safe, regulated mortgages—they just use different math to calculate your ability to repay.

From my experience navigating this market, here are the core requirements you generally need to meet:

• Credit Score: While flexible, lenders still want to see responsibility. A FICO score of 620 to 680 is typically the floor, though higher scores get better interest rates.
• Down Payment: You need “skin in the game.” Expect to put down 10% to 20%, which is slightly higher than a standard conventional loan.
• Cash Reserves: Lenders want to know you won’t go broke after closing. You usually need to show 3 to 6 months of mortgage payments sitting in your bank account.
• Credit Events: If you have a recent bankruptcy or foreclosure, you can still qualify, often with a shorter waiting period than what Fannie Mae requires.

How to Get a non-QM Loan?

Getting a Non-QM loan isn’t necessarily harder than a traditional one; it just requires a different strategy. You need to present your story clearly. Here is the step-by-step roadmap I recommend following to get from application to closing.

1. Assess Your Eligibility

Before you talk to anyone, you need to look in the financial mirror. I learned early on that knowing why you need a Non-QM loan helps you pick the right program. Are you self-employed with high gross revenue but low net income on your tax returns? Or are you a real estate investor looking to buy a rental property without using your personal income?

Start by pulling your own credit report to ensure there are no errors. Then, calculate your “liquid” assets—cash, stocks, or crypto that can be easily sold. Since Non-QM lenders don’t use standard debt-to-income (DTI) ratios in the traditional sense, having strong reserves is your best bargaining chip. Understanding your own financial profile gives you confidence when you start negotiations.

2. Find a Specialist Lender

This is the most critical step. Not every lender offers Non-QM products, and even fewer do it well. In the past, searching for these loans meant dealing with aggressive sales calls and bait-and-switch offers. This is why I genuinely recommend using Bluerate.

Bluerate connects you directly with local, verified experts. You can specifically look up a loan officer’s NMLS (Nationwide Multistate Licensing System) status on Consumer Access to ensure they are legitimate.

Here is why Bluerate stands out in my experience:

1. Real Rates, No Teasers: What you see is what you get. The rate they show isn’t a fake number just to get you on the phone. It’s the actual rate you can lock in.
2. Personalized Calculation: You can input your specific details—credit score, estimated purchase price, down payment, and liabilities—to get a custom quote instantly.
3. Digital Ease: You can pre-qualify online, easily complete the standard 1003 loan application form, and even export your data in FNM 3.4 format, which saves a ton of time.
4. Full Transparency: Their system connects to the LOS (Loan Origination System), allowing you to track exactly where your file is in the pipeline.
5. Privacy First: Bluerate is SOC 2 Type II certified. This means they don’t sell your data to random lenders. You won’t get bombarded with spam calls, which is a huge relief.

3. Gather Alternative Documentation

Since you aren’t using W-2s or tax returns, you need to prove your income differently. When I went through this, I had to organize my documents based on the specific loan type. Here is a breakdown of what you’ll likely need:

• For Bank Statement Loans: If you are a business owner, gather 12 to 24 months of business or personal bank statements. The lender analyzes your deposits to calculate your income, ignoring your tax write-offs.
• For DSCR Loans (Investors): You don’t need personal income docs here. Instead, you need the lease agreement or a rent schedule (Form 1007) from an appraiser. As long as the rent covers the monthly mortgage payment, you qualify.
• For Asset Depletion: Provide statements for investment accounts, retirement funds, or savings. The lender divides your total assets by a set term to create a “monthly income.”
• For 1099 Earners: Simply provide your 1099 forms and a current Profit & Loss (P&L) statement, often prepared by a CPA.

4. Complete a Loan Application & Get Pre-approved

Once your documents are ready, it’s time to officially apply. With modern platforms, this is mostly digital. I uploaded my ID, bank statements, and property details through the secure portal.

The goal here is to get a Pre-Approval Letter. Do not skip this. In a competitive market, realtors won’t take your offer seriously without it. A solid pre-approval from a reputable Non-QM lender tells the seller, “I have the money, and I can close.” Be honest on your application—if you have a past credit blip, disclose it upfront so the loan officer can structure the deal correctly.

5. Underwriting and Closing

After you sign the purchase contract, your file goes to underwriting. Think of the underwriter as a detective; they verify everything you submitted.

In my experience, this stage requires patience. They might ask for a “Letter of Explanation” regarding a large deposit or a gap in employment. Don’t panic—just answer quickly. Simultaneously, an appraisal will be ordered to confirm the home’s value. Once the underwriter gives the “Clear to Close,” you’ll sign the final closing disclosure. While traditional loans take 30 days, Non-QM can sometimes take a bit longer due to the manual review, but using a tech-forward platform like Bluerate keeps the timeline tight.

Conclusion

Securing a Non-QM loan doesn’t have to be a scary or confusing process. It is simply a tool designed for the modern economy, where gig work, self-employment, and investing are the norm. By understanding the requirements and gathering the right documents, you can bypass the rigid rules of big banks.

If you are ready to explore your options without the hassle of spam calls or hidden fees, I highly suggest starting with Bluerate. Their commitment to data security and real-time, accurate rates makes them a trustworthy partner in your home-buying journey. Don’t let a unique income situation stop you—your loan is out there.