Non-QM Loans in Austin, TX
- Self-employed
- Investors
- Alternative documentation
- Texas
I’ve been in the mortgage business since 2004, and plenty of good borrowers in Austin don’t fit the agency box. Business owners write off income. Tech workers hold much of their wealth in equity. Investors want to qualify on the property, not their paycheck. Non-QM exists for those files, and because every non-QM lender writes its own guidelines, shopping them is where a broker earns its keep.
Find your program
| Program | It may fit if… |
|---|---|
| Bank statement loans | You’re self-employed and your deposits tell the story better than your returns |
| P&L loans | You have a profit-and-loss statement for your business |
| 1099 loans | You’re a contractor paid on 1099s |
| DSCR loans (Texas DSCR guide) | You’re buying a rental and want to qualify on its rent |
| Airbnb & short-term rental DSCR | You’re buying a vacation rental and want to qualify on its rental income |
| No-ratio DSCR | The rent on your rental doesn’t cover the full payment |
| DSCR for 5–8 units | You’re buying a 5 to 8 unit residential building |
| DSCR second mortgage | You want to tap equity in a rental and keep your first mortgage |
| Self-employed mortgages | You own a business and want to see all your options |
| Bank statement jumbo | You’re self-employed and buying above conforming limits |
| Asset depletion | You have savings or investments but little monthly income |
| ITIN mortgages | You have an ITIN instead of a Social Security number |
| Foreign national | You live outside the US and are buying in Austin |
| Interest-only | You want lower initial payments and plan for the later increase |
| After bankruptcy or foreclosure | You’ve had a recent credit event and your finances have recovered |
| WVOE-only | You’re a W-2 earner and your employer can verify your income |
| Non-warrantable condos | The condo project doesn’t meet Fannie Mae or Freddie Mac guidelines |
Related, not non-QM: Jumbo · Bridge · Fix and flip · Investment property loans
Non-QM vs agency (QM) loans
| Agency / QM loans | Non-QM loans | |
|---|---|---|
| Documentation | Tax returns, W-2s, pay stubs | Alternative docs: bank statements, assets, rent, WVOE and more |
| Who it fits | Standard W-2 or easily documented income | Self-employed, investors, retirees, non-US borrowers, recent credit events |
| Property types | Primary, second home, investment within agency rules | Varies by program and lender |
| Guidelines | Set by Fannie Mae, Freddie Mac, FHA, VA | Set by each lender, and they differ a lot |
Fits when
- Your income is hard to document
- You earn investor or rental income
- You’ve had a recent credit event, or you’re a non-US borrower
Look elsewhere when
- You have a simple W-2 file with standard credit. A conventional, FHA or VA loan may fit better, and I’ll tell you if it does.
How CapFi shops non-QM
A bank or direct lender can only offer its own non-QM program. As a broker, CapFi Lending compares programs across more than 50 wholesale lenders, and if your deal needs a lender we don’t work with yet, we can sign one up. One lender might count business deposits differently than another. One might allow a property type another won’t touch. Matching those details to your file is the job.
Who uses non-QM in Austin
- Self-employed owners whose write-offs shrink their taxable income
- Tech employees with equity, RSUs or large brokerage balances
- Investors building rental portfolios across Central Texas
- Relocators and non-US buyers with income or credit that’s hard to verify here
Guides for self-employed borrowers
- How we evaluate self-employed income
- What lenders look for
- Conventional loans with non-traditional income
- How to qualify and choose the right loan
- How self-employed buyers qualify in Texas
- How to document your income
- How to qualify and get approved
- Pre-approval for self-employed buyers
- Self-employed loans: what lenders look for
- Self-employed mortgages in Austin
- Documenting self-employed income for conventional loans
- What lenders look for in a self-employed file
- Mistakes to avoid
Documents
Each program asks for different paperwork. See the docs list on each program page above.
FAQs
What is a non-QM loan?
A non-qualified mortgage is a home loan that doesn’t follow standard agency (QM) rules. Lenders often use alternative documentation such as bank statements, assets or rental income to verify that you can repay. Programs, eligibility and terms vary by lender, so comparing several lenders matters.
Who should consider a non-QM loan in Austin?
Self-employed borrowers, real estate investors, retirees with assets, ITIN borrowers, foreign nationals and people with a recent credit event. These borrowers may fit non-QM when agency loans don’t. If a conventional, FHA or VA loan fits your file, that is often worth comparing first.
Are non-QM loans more expensive?
Rates and terms on non-QM loans are often different from agency loans and vary by lender and scenario. The way to know is to compare real quotes. Ask for a quote that shows the APR, and compare it with any agency option you may qualify for.
How does a broker help with non-QM?
Non-QM guidelines differ a lot between lenders. CapFi Lending compares programs across more than 50 wholesale lenders to match your scenario, and we can sign up an additional lender if your deal needs one. A single bank can only offer its own program.
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Program availability, eligibility and terms are set by each lender and vary by lender and scenario. This is not a commitment to lend.
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