Portfolio & Non-QM Loans
Investor financing underwritten on the deal — not your tax returns.
Portfolio & Non-QM at a Glance
What Are Portfolio & Non-QM Loans?
If you're a real estate investor, you've probably hit the wall: you find a deal that obviously works, the numbers are clean, and then a conventional lender asks for two years of tax returns, W-2s, employment verification, and a debt-to-income calculation that has nothing to do with whether the property cash flows. For investors and self-employed borrowers, that's the wrong test — and it kills good deals.
Portfolio and Non-QM loans exist to solve that. "Non-QM" means non-qualified mortgage — financing that doesn't follow the rigid agency rulebook, which gives lenders room to underwrite the deal on its actual merits. "Portfolio" means the lender keeps the loan on their own books instead of selling it to Fannie or Freddie, so they set the terms.
The flagship product here is the DSCR loan — Debt Service Coverage Ratio. Instead of qualifying you on personal income, it qualifies the property on its cash flow. If the property's rental income covers its mortgage payment, it qualifies. No tax returns, no W-2s, no employment verification.
Conventional guidelines typically cap borrowers at around 6 to 10 financed properties. DSCR and portfolio loans don't play by that rule — each property stands on its own cash flow. The rest of the non-QM toolkit fills in the gaps: bank statement loans qualify self-employed borrowers on deposit history, asset depletion loans use your liquid assets as qualifying income, and P&L loans work off profit-and-loss statements.
Who Portfolio & Non-QM Loans Are For
Real estate investors building or scaling a rental portfolio, self-employed borrowers whose tax returns understate their real income, and anyone whose deals die in conventional underwriting despite obviously working.
Qualify on Cash Flow
DSCR qualifies on the property income — no tax returns, W-2s, or employment verification.
No Property Cap
Each property qualifies independently, so there is no hard wall on how many you can own.
Alternative Documentation
Bank statements, assets, or P&L options for borrowers conventional lenders cannot fit.
Built Around the Deal
Faster, more flexible underwriting designed around the deal, not a rigid agency checklist.
The Properties You Buy
Single-family rentals, condos, townhomes, and small multifamily (2–4 units).
Scale Past Conventional
How serious investors finance properties once conventional financing taps out.
How the Process Works
Built to move at the speed deals actually close.
Bring the Deal
Share the property and the numbers. We focus on whether the deal works, not on your tax returns.
Run the DSCR
We check whether the property's rent covers its full payment. If it does, it qualifies.
Term Sheet
We structure the loan around the asset — down payment, reserves, and rate based on the deal.
Underwriting
Asset-focused underwriting, with a market rent analysis or lease for properties without rental history.
Close & Scale
Close and move on to the next one. Each property qualifies on its own, so you keep building.
Estimate the Payment
Model the monthly payment on an investment property. Enter any rate to estimate it — your real terms come from the deal and your application.
This is an estimate for planning purposes only — not a rate quote, loan offer, or commitment to lend. Your actual rate and payment depend on your full application. Contact us for a personalized quote.
Eligibility
Underwriting centers on the asset, but the borrower still matters:
- DSCR — lenders look for the property's income to cover its debt, often at a ratio of 1.0 or higher; some programs allow lower or "no-ratio" options on stronger deals.
- Credit score — generally a minimum around 620–640, with better pricing at higher scores.
- Down payment — typically 20–25% for DSCR and most non-QM investor programs.
- Cash reserves — often 3–12 months of payments, depending on the program.
- The property must be a non-owner-occupied investment. For new purchases without rental history, lenders can use a market rent analysis or lease to establish income.
Exact thresholds vary by lender and program — these are designed to flex around the deal, so it's worth a real conversation about your specifics.
What Our Clients Say
“Don was incredible to work with throughout my entire home-buying process as a first-time buyer. He was always quick to respond, happy to run different numbers for me, and consistently helped me stay on top of my timelines and due dates.”
Cailyn Hankins
Google Review
FAQs
Portfolio & Non-QM FAQs
It is an investor loan that qualifies the property instead of you. The lender checks whether the rent covers the full mortgage payment. If the property's income equals or exceeds what it costs to carry, it qualifies — no personal income docs required.
For DSCR loans, correct — qualification is based on the property's cash flow, not your personal income. Other non-QM programs use alternatives like bank statements, liquid assets, or profit-and-loss statements. The whole category exists to get around the tax-return bottleneck.
Access and speed. If conventional will not approve you — because of the property limit, your tax write-offs, or self-employment — then a slightly higher rate on a deal you can actually close beats a lower rate on a deal you cannot. And non-QM closes faster, which matters when good properties move in days.
There is no hard cap the way conventional imposes (usually around 6–10). Because each property qualifies on its own cash flow, DSCR and portfolio loans are built specifically for scaling.
Yes. You do not need an existing portfolio or rental history to start. For a property without rental income yet, lenders use a market rent analysis or signed lease to determine qualifying income. A strong deal with adequate reserves and a solid plan can get a first-timer approved.
"Non-QM" describes the loan — it does not meet the qualified-mortgage agency standard, which allows flexible underwriting. "Portfolio" describes what the lender does with it — keeps it in-house rather than selling it, which is what lets them set their own terms. Most investor-focused lenders offer both.
Have a Deal? Let's Talk.
Bring the property and the numbers — we will tell you how to finance it.