Posts by: Nick NPifer

The Self-Employed Borrower’s Dilemma in South Dakota In South Dakota, where entrepreneurship and self-employment are woven into the fabric of rural life, traditional mortgage requirements often fail to serve the financial realities of local borrowers. Farmers, ranchers, truckers, contractors, and small business owners make up a significant share of the economy—but they rarely meet the W-2 income verification standards required for conventional loans. The result? A financing gap that leaves many high-potential homeowners or refinancers sidelined.

This disconnect is especially pronounced in smaller communities across the state, such as Winner, Chamberlain, or Belle Fourche, where the economy relies on seasonal income and variable monthly cash flow. Traditional underwriting fails to recognize the financial health of borrowers who don’t have standard pay stubs but maintain steady revenue via personal or business bank accounts.

What Are Bank Statement Loans? Bank Statement Loans are a form of Non QM Loans that allow borrowers to qualify using deposits shown on their personal or business bank statements, instead of tax returns or pay stubs. Lenders like NQM Funding offer flexible documentation options that better reflect the true income of self-employed individuals.

Instead of requiring full income documentation, these loans assess average monthly deposits across a set period—12 or 24 months, or even just 2 months in some cases. Borrowers can use either personal or business statements, depending on their structure. This method offers a fair and transparent path to financing, especially for rural borrowers whose income fluctuates seasonally.

Why Bank Statement Loans Fit South Dakota’s Rural Economy South Dakota’s economy is heavily dependent on agriculture, energy, hospitality, and independent trades—industries where income tends to be project-based or seasonal. That means conventional underwriting often penalizes otherwise financially sound borrowers. From the Black Hills to the Missouri River Valley, many residents have high cash flow and asset reserves but inconsistent year-over-year taxable income.

Bank Statement Loans help solve this problem by focusing on cash flow. For borrowers in counties like Meade, Lawrence, or Hutchinson, this form of loan opens doors that traditional lending leaves shut. Because these loans do not rely on tax return income, they avoid the deductions that self-employed borrowers often take for tax benefits, giving a more accurate picture of true earning capacity.

Flexible Bank Statement Loan Programs from NQM Funding At NQM Funding, Bank Statement Loan options include 12- and 24-month bank statement programs, as well as a P&L only option supported by a CPA or tax preparer. Some highlights include:

• LTV up to 90%

• Loan amounts from $125,000 to several million

• Credit scores down to 620

• No mortgage insurance required

• Fixed, ARM, and Interest-Only terms available

For more details, visit the Bank Statement Loan Program page.

Using Business vs. Personal Bank Statements Business bank statements typically require a 50% expense factor unless otherwise justified by a CPA. Personal statements can allow 100% of deposits to be considered income. In both cases, NQM Funding provides guidelines and calculators to help brokers determine qualifying income quickly and accurately.

Borrowers may also qualify using a CPA-prepared Profit & Loss Statement alone, reducing document gathering. This is especially useful for sole proprietors and rural entrepreneurs who don’t separate business and personal finances as cleanly as corporate entities.

How These Loans Serve Underserved Areas In many rural counties, access to traditional banking is limited. Local banks may not offer Non QM Loans or have rigid overlays that exclude self-employed borrowers. Bank Statement Loans offered through non-bank lenders like NQM Funding provide:

• Flexible qualifying methods

• Faster underwriting turnaround

• Broader credit tolerance

• No income tax return requirement

This is a game-changer for communities underserved by major financial institutions, giving families and individuals a real path to homeownership or refinancing.

Additional Scenarios Where Bank Statement Loans Help Farm Equipment Dealer in Aberdeen: A borrower who sells combines and tractors during spring and fall shows large deposits only during peak inventory turns. A 24-month average allows his true revenue to shine through.

Seasonal Tourism Guide in the Black Hills: Summer brings surges in income, while winter may be quiet. A 12-month bank statement reflects the pattern and provides a more realistic view than last year’s tax return.

Home-Based Business Owner in Mobridge: A rural-based home business with fluctuating monthly revenue qualifies using personal bank statements and a CPA letter outlining low operating expenses.

Loan Requirements and Highlights NQM Funding makes it easier for brokers and borrowers alike by keeping requirements practical:

• 2 years self-employment history

• At least 10% down

• Bank statements must be complete, consecutive, and reflect regular deposits

• Gift funds allowed up to 100% of down payment (with minimum borrower contribution in some scenarios)

• Available for primary, second homes, and investment properties

Other key requirements include:

• Maximum DTI ratio up to 50% depending on compensating factors

• Reserves may be required based on loan size and occupancy type

• 30-, 40-year fixed, and 5/6 ARM options with interest-only available

How Bank Statement Loans Compare to DSCR and Foreign National Options For investors, a DSCR loan may be more appropriate when purchasing rental properties based on cash flow alone. South Dakota has a growing investment property market, especially in university towns like Brookings and Vermillion.

Meanwhile, Foreign National Loans are ideal for international buyers looking to purchase in areas like the Black Hills, where short-term rentals and seasonal cabins attract foreign investors. South Dakota’s relatively low property taxes and affordability are increasingly attracting attention from abroad.

South Dakota Market Considerations for Loan Officers Loan officers and brokers working in South Dakota should pay attention to:

• The unique income structure of their self-employed clients

• Seasonal and cyclical revenue patterns in rural areas

• Property types ranging from manufactured homes to rural homesteads

• The competitive edge of fast, flexible lending over big banks

• Demand for homeownership and refinance in underserved tribal and agricultural communities

Bank Statement Loans allow you to stand out by saying “yes” when other lenders say “no.”

How Brokers Can Grow Their Business with Bank Statement Loans The opportunity to serve self-employed clients in South Dakota is vast:

• Partner with local CPAs to identify high-income, low-taxable-income borrowers

• Use NQM Funding’s Quick Quote tool to prequalify clients fast

• Target small towns and regional hubs like Huron, Mitchell, and Spearfish

• Develop educational content around Non QM Loan opportunities and distribute through local business associations and farm bureaus

• Educate borrowers on the difference between Non QM Loans and hard money lending to build trust

Meeting the Needs of Modern Borrowers in a Changing Economy The lending landscape is shifting. Rigid underwriting models are giving way to real-world income recognition. Bank Statement Loans are at the forefront of this shift, especially in rural states like South Dakota. For loan officers and brokers ready to adapt, there’s an entire market waiting to be served.

Bank Statement Loans provide real-world solutions to income documentation gaps and give local entrepreneurs a clear path to homeownership. By building relationships with borrowers often overlooked by traditional lenders, brokers can not only close more loans—they can make a meaningful impact in rural communities that are too often underserved.

To learn more or start your application, visit NQM Funding or access the Bank Statement Program overview.

Understanding DSCR Loans and Their Relevance to Hawaii’s Market

Debt-Service Coverage Ratio (DSCR) loans are specifically designed for real estate investors seeking to qualify based on the cash flow generated by their properties rather than personal income. Unlike conventional financing, which heavily weighs a borrower’s tax returns, employment status, and personal debt-to-income ratios, DSCR loans calculate eligibility using a simple ratio: the property’s rental income divided by its monthly debt obligations.

For investors in Hawaii, this distinction is critical. With property values in the Aloha State consistently among the highest in the U.S. and significant short-term rental activity, the ability to qualify based on property performance alone opens the door to a broader base of borrowers. DSCR loans allow brokers and mortgage professionals to serve clients ranging from seasoned investors to LLCs and even foreign nationals who may not have U.S.-based income or tax filings.

Why Hawaii’s Vacation Market Demands a Different Lending Approach

Hawaii’s economy is driven in large part by tourism. This creates a high-demand vacation rental market, particularly on islands like Maui, Oahu, and the Big Island. As a result, many investment properties operate as short-term rentals (STRs), which generate substantial monthly revenue but don’t always reflect well on tax returns due to write-offs or passive losses.

Traditional lenders often struggle to accommodate these borrowers. But with DSCR financing, the income from the property itself—supported by lease agreements or market rent estimates—becomes the primary underwriting metric. This makes DSCR loans especially relevant for Hawaiian vacation rental investors, who might otherwise fail to meet agency or full-doc guidelines.

DSCR Loan Guidelines with NQM Funding

NQM Funding offers flexible and competitive DSCR loan options tailored for the investor landscape. Key features include:

• Minimum DSCR: 0.75

• Maximum LTV: up to 80% for purchases and rate/term refinances, 75% for cash-out

• Credit Score: as low as 620

• Documentation: No personal income or employment documentation required

• Ownership: Properties can be vested in LLCs, corporations, or trusts

• Eligible properties: SFRs, 2–4 units, warrantable and non-warrantable condos, and condotels

• Loan amounts: Up to $3,000,000, with exceptions for higher balances with strong compensating factors

Short-term rental income may be considered with proper documentation including 12 months of receipts from a property management firm or Airbnb/VRBO records, and a 1007 rent schedule or comparable market rent analysis.

Maximizing DSCR Ratios for Hawaiian Investment Properties

To achieve the strongest possible DSCR ratio, borrowers should structure rental agreements that reflect the property’s full income potential. For short-term rentals, the average of the past 12 to 24 months’ income may be considered, provided it is documented through a reputable property management firm. While AirDNA and similar predictive platforms are not permitted, NQM Funding will accept signed leases and third-party rent schedules.

HOA dues, property taxes, insurance, and management fees must be factored into the property’s monthly obligations to determine an accurate DSCR ratio. A DSCR of 1.0 or greater is preferred, but NQM will finance down to 0.75 DSCR with reduced LTV.

Location-Specific Factors: Investing in Hawaii with DSCR Loans

Each Hawaiian island has different regulations regarding short-term rentals. On Oahu, for example, certain areas are restricted to 30-day minimum leases unless located in a designated resort zone. In Maui, STRs may only be permitted in specific zones or buildings.

To comply with NQM Funding guidelines, borrowers must provide documentation from a third-party source such as Property Guard or Vrolio to confirm the property’s legal short-term rental status. This ensures that the income used for DSCR qualification is sustainable and compliant with local laws.

Benefits of DSCR Loans for Out-of-State and International Buyers

One of the greatest benefits of Hawaii DSCR loans is accessibility. Investors from the mainland and abroad can leverage Hawaii’s high-demand vacation rental market without providing W-2s, tax returns, or pay stubs. NQM Funding does not require U.S. employment, and foreign nationals may qualify under separate guidelines as long as the property’s income supports the loan.

This makes DSCR loans particularly appealing to international investors and U.S. citizens who own multiple investment properties, operate under LLCs, or rely on 1099 or alternative income streams.

Using DSCR Loans for Cash-Out Refinancing in Hawaii

Investors looking to pull equity from existing properties for reinvestment or renovation will find cash-out DSCR loans highly useful. NQM allows up to 75% LTV for cash-out refinances, provided the borrower has been on title for at least six months.

Properties listed for sale in the past six months are ineligible for cash-out unless a prepayment penalty is included in the new loan terms. If the property has been owned less than 12 months, the appraised value may be used to calculate LTV as long as improvements justify the increase.

Interest-Only Options and Flexible Terms for DSCR Loans

Interest-only DSCR loans are available through NQM Funding with 10-year IO periods followed by 20- or 30-year amortization. This option enhances cash flow, which is especially valuable for properties with seasonal fluctuations like those in Hawaii.

Fixed-rate and ARM products are also available, allowing brokers to tailor the loan to each investor’s exit strategy, whether that’s a hold, sell, or refinance.

How NQM Funding Supports Brokers in High-Demand Markets Like Hawaii

Mortgage professionals working with NQM Funding gain access to a wide array of Non QM Loan programs, including the industry’s most flexible DSCR loans. Brokers can rely on experienced underwriters who understand the nuances of short-term rental income, seasonal cash flow, and complex vesting structures.

NQM offers fast turn times, dedicated account executives, and tools like the Quick Quote form to expedite prequalifications. Brokers can also direct borrowers to the DSCR program page to learn more.

Local Lending Considerations and State Restrictions

Hawaii is a non-licensed state for NQM Funding. While this limits certain lending types, DSCR loans remain fully viable under business-purpose guidelines. Brokers must ensure that borrower intent and property usage align with investment classifications.

Third-party licensing or verification may be required for STR compliance. Additionally, loans must meet all federal and local fair lending laws and disclosure requirements.

Strategic Advantages for Mortgage Brokers in the Hawaii Market

Mortgage brokers working in Hawaii’s competitive investment space need more than conventional loan products to meet client expectations. DSCR loans not only empower brokers to serve a broader base of clients, but also simplify the loan process. With no income verification and limited documentation requirements, brokers can close deals faster and more efficiently—critical in a market where inventory moves quickly and competition from all-cash buyers is fierce.

In addition, DSCR loans from NQM Funding allow brokers to present options that support sophisticated investment strategies, including portfolio diversification, short-term rental arbitrage, and passive income generation. These capabilities enable brokers to build long-term relationships with investor clients who may own multiple properties across the islands.

Navigating Hawaii’s Unique Regulatory Landscape

Regulatory compliance in Hawaii varies greatly by county and island. Honolulu County, Maui County, Kauai County, and Hawaii County each maintain their own vacation rental ordinances. For example, Oahu recently enacted Bill 41, which restricts STR activity in residential neighborhoods, requiring minimum 90-day rentals in most cases unless grandfathered in or operating in resort zones.

Understanding these nuances is critical when qualifying a DSCR loan. NQM Funding requires third-party verification that STR activity is legal and permitted under local laws. This protects both the lender and investor from potential enforcement actions or income disruptions due to code violations.

Brokers should familiarize themselves with local zoning maps, permit procedures, and licensing requirements. Helping investors identify legally operable STR properties is a value-added service that enhances borrower trust and streamlines the DSCR approval process.

Comparing DSCR to Alternative Non-QM Options

While DSCR loans are often the best fit for rental property financing, they’re not the only Non QM Loan options available at NQM Funding. For borrowers with significant business income but limited tax documentation, a 2-Month Bank Statement Loan may be a viable path. Likewise, Foreign National Loans offer specialized solutions for overseas investors seeking U.S. real estate exposure without the barriers of traditional underwriting.

However, DSCR loans remain the preferred product for properties that demonstrate strong rental income and where borrower income documentation is unavailable, inconsistent, or unnecessary. In these cases, the property itself becomes the qualifying asset, making DSCR lending a true cash-flow-based investment solution.

Tips for Successfully Submitting DSCR Loan Applications

To ensure a smooth underwriting process with NQM Funding, mortgage professionals should prioritize the following documentation for Hawaii-based DSCR loans:

• Fully completed 1003 indicating business-purpose intent

• Rent schedule (1007) or lease agreement showing actual income

• Evidence of STR compliance (if applicable)

• Appraisal including rental analysis

• Title showing borrower ownership (for refinances)

• Operating agreement if vesting in an LLC

• Voided check for ACH setup, if applicable

While no personal income documentation is required, all loans are reviewed to ensure reasonable borrower experience and alignment with business-purpose lending rules. Submitting clean, complete packages increases approval speed and helps avoid delays.

Anticipated Market Trends and Opportunities in Hawaii

Looking ahead, the demand for Hawaiian vacation rentals is expected to remain strong. With remote work flexibility and ongoing interest from domestic and international buyers, the islands continue to attract affluent travelers and second-home seekers. These dynamics bode well for investors using DSCR loans to purchase, refinance, or scale their portfolios.

Moreover, recent rate fluctuations and tightened agency guidelines may push more investors toward Non QM Loans. DSCR programs—especially those offered by lenders like NQM Funding—will be increasingly vital in supporting financing for rental properties in high-demand, high-value regions like Hawaii.

Mortgage brokers who position themselves early and become fluent in DSCR structuring, local rental regulations, and property underwriting will capture a significant share of this ongoing market activity.

Explore Your Hawaii Investment Opportunities

To get started, visit the NQM Funding homepage and explore our full range of Non QM Loans. Whether your client is investing in a Maui vacation condo or a Big Island fourplex, DSCR financing offers a streamlined path to ownership without the income verification hurdles of traditional loans.

Alaska is a region of striking natural beauty and rich economic potential, but it’s also a niche real estate market where foreign investors are beginning to take serious notice. With limited inventory, an influx of seasonal tourism, and a steady demand for long-term rentals, Alaska represents a unique opportunity for international buyers looking to diversify their real estate portfolio. Navigating this market as a non-U.S. citizen, however, requires specialized financing solutions. This is where Foreign National Loans come into play, and NQM Funding stands out as a Non QM Lender offering highly tailored lending products to meet these international needs.

Growing Interest from International Real Estate Investors in Alaska

What makes Alaska an appealing destination for foreign investors? Aside from its majestic landscape, Alaska’s real estate market is bolstered by key industries such as energy, tourism, and government contracting. Cities like Anchorage, Fairbanks, and Juneau have maintained housing demand even when national trends shift. The state’s relative affordability compared to coastal U.S. markets adds to its allure.

Additionally, international investors often find Alaska attractive due to its:

• Seasonal rental income potential through short-term vacation properties

• Low population density and privacy appeal

• Stable demand from military, healthcare, and university sectors

• Lower average home prices compared to larger urban markets in the U.S.

Anchorage, the largest city, is considered the economic hub of the state. The city benefits from proximity to oil industry operations, hospitals, and military installations like Joint Base Elmendorf-Richardson. Housing here caters to both permanent residents and a growing wave of seasonal tenants seeking proximity to the outdoors while maintaining urban comforts.

Fairbanks is the interior gateway to the Arctic and is home to the University of Alaska Fairbanks and Fort Wainwright. The academic year and military presence drive consistent rental demand, with limited inventory often pushing rents upward.

Juneau, accessible only by boat or plane, sees strong real estate interest from investors targeting government workers and tourists. The seasonal economy booms from May to September, which can create lucrative opportunities for short-term rentals. Understanding the local rules for short-term occupancy is vital here due to borough-specific regulations.

Understanding Foreign National Loans

A Foreign National Loan is a type of mortgage specifically designed for individuals who live and work outside the United States and do not hold U.S. citizenship or permanent residency. These loans are ideal for buyers seeking to purchase a second home or investment property in the U.S. without the need for traditional income or credit verification commonly required for domestic borrowers.

At NQM Funding, Foreign National Loans are structured to provide flexibility while maintaining responsible underwriting standards. The borrower must:

• Live and work outside the U.S.

• Purchase the property for investment purposes only

• Provide valid identification, such as a passport and visa (if applicable)

• Submit documentation in English or provide certified translations

• Open a U.S. bank account for ACH payment setup

Loan Structures and Flexibility at NQM Funding

NQM Funding offers a range of term options to suit investor strategies:

• 15-year, 30-year, and 40-year fixed options

• Adjustable Rate Mortgages (5/6, 7/6 ARMs)

• Interest-Only terms available for cash flow-sensitive buyers

The maximum LTV is 70% for qualifying Foreign National borrowers. Minimum loan amounts start at $125,000. No mortgage insurance is required, even with higher LTV structures, and qualification can be entirely based on property cash flow through DSCR.

Income Qualification Options

Foreign borrowers may be eligible under several documentation routes:

• Full doc: CPA or employer letter verifying 2 years of income history (translated if needed)

• Asset utilization: Liquid assets divided by 60 to derive qualifying income

• DSCR: Rental income must meet or exceed PITIA; DSCR must be at least 1.0

DSCR qualification is particularly appealing for international investors who may not have verifiable income by U.S. standards. NQM Funding accepts Interest-Only payments when calculating DSCR for IO loans, offering more flexibility. This makes the product ideal for properties that are generating sufficient rent to carry the debt obligation.

For more information, visit the DSCR Loans for Investors page.

Borrower and Document Requirements

To be eligible, borrowers must:

• Provide a valid passport and visa (or qualify under the Visa Waiver Program)

• Sign an Automatic Payment Authorization (ACH) form for a U.S. bank account

• Demonstrate a 12-month housing history (rent or owned free and clear)

• Supply proof of assets seasoned in a U.S. account for at least 10 days before closing

Documents signed outside of the U.S. must be notarized via Apostille or at a U.S. consulate. NQM Funding also performs OFAC screening to ensure borrowers are compliant with federal sanctions.

Understanding Alaska’s Investment Property Landscape

Investment property acquisition in Alaska demands attention to local zoning, rental guidelines, and weather-related considerations. Short-term rentals are allowed in many areas but may require business licenses or permits. Urban neighborhoods often see stricter enforcement than rural properties.

Many homes in Alaska require higher insurance coverage due to exposure to weather, wildlife, and terrain. Proper due diligence includes confirming roof age, heating system compliance, and septic certification in remote areas.

Benefits for Mortgage Brokers and Loan Officers

Foreign National Loans are a valuable addition to any broker’s product offering. These loans:

• Serve an often-overlooked international buyer segment

• Deliver high loan amounts with strong closing compensation

• Are ideal for luxury or vacation markets like Alaska

• Allow brokers to expand reach internationally without the need for Fannie/Freddie constraints

NQM Funding provides brokers with responsive support, flexible underwriting, and clear product matrices. Submission to close timelines are competitive, and pre-approval scenarios can be quoted rapidly using the Quick Quote tool.

Getting Started with a Foreign National Scenario

If you’re working with a buyer who meets Foreign National criteria, the process starts with collecting the following:

• Valid passport, visa, and proof of address abroad

• Recent utility bills or bank statements

• CPA/employer letter and 12-month housing history

• Bank statements showing liquid assets available for down payment and reserves

All foreign-language documents must be translated and certified. It’s recommended to initiate these steps early, especially for buyers unfamiliar with U.S. banking or escrow processes.

Tools and Resources for Brokers

NQM Funding offers a broad suite of Non QM Loan options designed to help brokers win niche scenarios, including:

• Foreign National Loans

• Bank Statement Loans

• DSCR Investor Programs

• Non QM Loans Overview

Each product is tailored to provide flexibility around documentation, reserves, and borrower profiles.

The Path to Close

Once documents are submitted, the underwriting process will verify compliance with all guidelines. Title and escrow must be in place, and funds should be wired into a U.S. account for seamless ACH setup. Brokers should ensure borrowers understand U.S. closing practices, such as title insurance, prepaid escrows, and FIRPTA tax implications.

Partnering with NQM Funding ensures that every stage—application, underwriting, funding—is managed by a team experienced in handling cross-border mortgage transactions.

Expanded Considerations for International Borrowers

Foreign national clients often face hurdles in understanding the U.S. real estate and financing ecosystem. Unlike domestic borrowers, they must deal with international wire transfers, translation of documents, and unfamiliarity with escrow timelines. Brokers play a critical role in bridging that gap. Working with a knowledgeable Non QM Lender like NQM Funding ensures that each step—from initial intake to closing—is supported by professionals experienced in foreign transactions.

Additionally, many foreign borrowers do not have U.S. tax identification numbers. While ITIN programs exist, Foreign National Loans are distinct in that no ITIN is required. Borrowers simply need to comply with federal rules around disclosure, OFAC screening, and tax withholding. For property sellers, FIRPTA may apply, requiring careful handling of withholdings during the transaction. Brokers should always advise clients to consult with U.S. tax professionals early in the process.

Down payments are typically sourced from overseas accounts. These funds must be tracked, documented, and seasoned properly. Acceptable documentation includes foreign bank statements, wire transfer receipts, and official translations. Lenders like NQM Funding will require these funds to be in a U.S. depository institution at least 10 days before closing to ensure liquidity and settlement timing.

Servicing and Payment Management

Once a Foreign National Loan is originated, payments must be made from a U.S. bank account via automated clearing house (ACH) transfer. This ensures timely repayment and reduces the complexity of international banking conversions. Most foreign buyers will set up a U.S.-based checking account with a major bank during the property acquisition phase. Brokers should be proactive in helping clients plan for this step early in the process.

Because NQM Funding services these loans directly or through familiar sub-servicers, borrowers receive ongoing support and clear monthly statements. Customer service can also assist with language needs, especially when borrowers are non-English speakers.

Why Alaska Is Poised for More Foreign Investment

Alaska’s position as a frontier market gives it a unique value proposition. Land is more affordable, tourism continues to grow, and demand for both long- and short-term housing remains steady. In contrast to saturated urban markets like New York or Los Angeles, Alaska still offers double-digit ROI potential on investment properties. This is especially true in areas where seasonal or government employment drives rental income but where housing supply remains tight.

Foreign buyers seeking yield and portfolio diversification should consider this geographic niche. Paired with a Non QM Lender willing to meet their documentation profile, Alaska becomes not just viable—but highly attractive.

Final Thoughts

Alaska is a high-yield, low-competition market with enormous potential for international real estate investors. With the right financing partner, brokers can unlock this opportunity for their clients and stand out in a saturated lending landscape.

Submit a lead today through our Quick Quote or browse the full guidelines on the Foreign National Program page. Discover the tools available to help you scale your business and support your clients in securing real estate across the Last Frontier with a trusted Non QM Lender.

Why Wyoming’s Real Estate Market Demands Non-QM Loan Flexibility

Wyoming, a state known for its open landscapes and relatively sparse population, presents a unique challenge for homebuyers and real estate investors alike. Traditional mortgage products often fall short of accommodating the realities faced by Wyoming residents—especially self-employed buyers and those investing in rural areas. Fortunately, Non-QM loans offer a lifeline to borrowers who don’t meet agency guidelines but still represent low risk.

Understanding Non-QM Loans: What Mortgage Brokers Need to Know

Non-QM loans, or non-qualified mortgages, are designed for borrowers who don’t fit the mold required for traditional lending. That often includes self-employed individuals, real estate investors, retirees using asset income, and foreign nationals. These loans do not need to meet the strict Ability-to-Repay (ATR) rules that define QM (Qualified Mortgage) loans, but they still follow responsible lending standards.

Mortgage brokers serving Wyoming should familiarize themselves with Non-QM loan features such as flexible income documentation, higher allowable DTI ratios, interest-only options, and terms up to 40 years. NQM Funding, LLC (NQMF) provides an array of Non QM Loan programs tailored to these needs.

The Self-Employed Borrower: Common Challenges with Traditional Mortgage Loans

Self-employed borrowers—whether full-time freelancers, gig economy workers, or small business owners—make up a significant portion of Wyoming’s workforce, particularly in sectors like agriculture, oil and gas, tourism, and trades. Yet they’re frequently excluded from traditional financing options due to inconsistent income reporting or insufficient documentation.

Standard income verification methods rely heavily on W-2s and tax returns, which often underrepresent self-employed income due to tax deductions and reinvestment strategies. Non-QM programs like Bank Statement loans or P&L documentation provide an alternative pathway to approval.

How Wyoming’s Economic Landscape Influences Loan Qualification

In Wyoming, many professions operate seasonally or project-based, making it difficult to establish consistent monthly income on paper. Ranchers, outfitters, and those in hospitality or construction may have high annual incomes but sporadic cash flow.

Additionally, due to the state’s rural character, borrowers often purchase unconventional properties—cabins, modular homes, land with acreage—that don’t always conform to conventional underwriting guidelines. Non-QM loans accommodate these situations by evaluating the borrower’s full financial picture rather than just W-2 income.

Solving the Documentation Dilemma: Bank Statement and P&L Loan Options

NQMF offers programs where borrowers can qualify using 12 or 24 months of personal or business bank statements, providing flexibility for borrowers with strong cash flow but complex tax returns. Alternatively, a CPA-prepared Profit and Loss Statement can be used in place of bank statements under select conditions.

These options are ideal for Wyoming’s independent operators, such as farm-to-table entrepreneurs, Airbnb hosts, local craftsmen, and consultants.

DSCR Loans in Wyoming: Empowering Rural and Urban Real Estate Investors

Debt-Service Coverage Ratio (DSCR) loans provide a compelling solution for real estate investors in Wyoming. With DSCR loans, qualification is based on the property’s income potential—not the borrower’s personal income or tax returns. This makes them ideal for borrowers expanding rental portfolios in Cheyenne, Casper, and Laramie or entering the short-term rental market in Jackson Hole.

Investor DSCR Loans from NQMF allow up to 80% LTV with competitive rates and simplified underwriting. These loans empower investors to act quickly in competitive markets or finance multiple properties without over-leveraging personal income.

Investing in Wyoming: Unique Advantages for Property Investors

Wyoming is among the most business-friendly and tax-efficient states in the U.S. It has no state income tax, low property taxes, and landlord-friendly eviction laws—making it attractive for long-term investment strategies.

High tourism regions like Jackson Hole or Yellowstone gateway towns see strong short-term rental demand, while more affordable cities like Casper and Cheyenne offer reliable long-term cash flow.

DSCR loans allow investors to secure financing based on current or projected rental income. And since Wyoming’s markets often have limited comparable sales, NQMF’s DSCR approach—relying on rent rolls and appraised market rents—can simplify approvals where traditional appraisals fall short.

Wyoming’s Rural Landscape and Non-QM Lending

Rural properties in Wyoming can be difficult to finance due to zoning, unique construction, or lack of public utilities. Conventional lenders often avoid these loans entirely, leaving buyers with limited options.

Non-QM loans shine in these cases. DSCR loans, for example, can be used on rental cabins on acreage, while bank statement loans help self-employed borrowers buying non-traditional homes. NQMF supports these property types with competitive LTVs and asset-based lending guidelines.

Foreign National and ITIN Borrowers in Wyoming’s Market

Wyoming has growing immigrant communities and attracts foreign investors—particularly those interested in natural beauty, land banking, and passive income via short-term rentals.

The Foreign National and ITIN Loan programs at NQMF allow these borrowers to qualify without U.S. tax returns or citizenship. With options including 70-75% LTV, 12-month reserves, and automatic payment setups, these products open the door for international capital in local markets.

Common Use Cases for Non-QM Loans in Wyoming

• Business owners needing a Quick Quote for a primary home

• Real estate investors buying triplexes or 4-units based on rental income

• Borrowers with recent credit events like bankruptcy who have since recovered

• Self-employed buyers with high income but extensive deductions

• Rural buyers whose properties don’t meet conforming guidelines

Program Highlights for Wyoming Non-QM Borrowers

• Up to 90% LTV on select owner-occupied programs (no MI required)

• DSCR options with Interest-Only or 40-Year fixed terms

• 620 minimum credit score for DSCR programs

• Asset utilization and alt-doc accepted on eligible programs

• Loans available to LLCs and trusts for investor flexibility

• No TRID requirements for business-purpose loans

How Brokers Can Prequalify Non-QM Borrowers Efficiently

Mortgage brokers should focus on cash flow documentation and property performance rather than traditional credit overlays. For DSCR loans, ensure lease agreements or market rent reports are in hand. For bank statement borrowers, identify whether business or personal statements best reflect income.

Prequalifying becomes easier with NQMF’s Quick Quote system, which simplifies submission and pricing for scenarios that don’t fit the GSE box.

Location-Specific Lending Insights: Wyoming Non-QM Market Trends

• Cheyenne: Suburban development is growing thanks to proximity to Colorado; ideal for owner-occupied Non-QM scenarios.

• Jackson Hole: Premium short-term rentals and international investor interest make DSCR and Foreign National loans appealing.

• Casper & Gillette: Many borrowers work in seasonal or project-based energy jobs—prime candidates for bank statement loans.

• Laramie: With university housing demand, DSCR investors can benefit from multi-unit properties near the college.

• Sheridan, Riverton, and other small towns: These markets are underserved by traditional banks, but Non-QM programs give brokers lending flexibility in places others won’t.

Tips for Working with Non-QM Borrowers in Wyoming

• Clarify the benefit of flexible documentation and longer terms

• Set expectations around slightly higher rates and reserve requirements

• Prepare borrowers to provide full documentation early (bank statements, leases, business licenses)

• Use common language and avoid mortgage jargon—many self-employed borrowers are not used to mortgage speak

Getting Started with Wyoming Non-QM Loans

NQMF makes it easy for brokers to serve self-employed buyers and rural investors in Wyoming. With purpose-built programs for bank statements, DSCR, and foreign national buyers, brokers can close more loans—even when conventional lenders say no.

Start your next scenario with a Quick Quote or browse available Non QM Loan products to find the right fit.

Additional Local Opportunities for Brokers and Investors

One of the most promising trends in Wyoming is the movement of remote workers and early retirees seeking affordable housing with scenic value. Towns like Cody and Pinedale are seeing slow but steady growth as new residents look for peaceful alternatives to more expensive western metros. Brokers can leverage Non-QM programs to serve this demographic—especially when clients are cash-heavy but lack traditional income documentation.

Real estate agents are reporting increased interest in raw land purchases, especially from buyers planning to develop custom or off-grid homes. These properties often fall outside the scope of agency loans, making them prime opportunities for Non-QM financing. Brokers working in tandem with builders can prequalify these buyers with asset depletion programs or bank statement loans.

Serving Unbanked and Underserved Communities

Wyoming has a large number of unbanked or underbanked households, especially in tribal and remote communities. These individuals may not have extensive credit profiles or long-term employment histories but still possess the financial capacity to afford a mortgage.

With Non-QM loans that accept alternative forms of credit verification—such as rental histories, utility payments, or even 12-month asset seasoning—brokers can empower these buyers. Programs supporting manual underwriting or credit exception processes help ensure access to housing finance is equitable.

Alternative Property Types Common in Wyoming

Many Wyoming residents live in homes that may not conform to the standards of traditional mortgage lenders. These include modular or manufactured homes, log cabins, earth-sheltered homes, and properties with mixed residential-agricultural use. These property types often pose issues for agency lenders due to zoning codes, construction type, or appraisal inconsistencies.

Non-QM lenders like NQMF are often more flexible in approving these properties, as long as the borrower meets basic credit and down payment thresholds. Brokers working in rural counties should be familiar with the specific appraisal and condition requirements for these homes to ensure smoother processing.

The Role of Mortgage Brokers in Educating Non-QM Borrowers

Many Wyoming borrowers—especially first-time buyers or rural homeowners—are unfamiliar with the concept of Non-QM lending. Mortgage brokers play a critical role in educating these clients about the benefits, risks, and qualification standards associated with these loan types.

Transparency is key. By clearly explaining the tradeoffs (e.g., slightly higher rates in exchange for documentation flexibility), brokers can build trust and ensure borrowers are confident in their financing decisions. Leveraging NQMF’s educational resources can also support borrowers through the process.

Why Partner with NQM Funding for Wyoming Borrowers

NQMF specializes in custom mortgage solutions that don’t fit inside the traditional lending box. For brokers in Wyoming, this means faster closings, flexible guidelines, and access to programs that match the local economy and borrower base.

NQMF provides:

• Common-sense underwriting

• Direct access to Non-QM decision makers

• Wholesale and correspondent options

• Pricing transparency through Quick Quote

Whether you’re helping a self-employed rancher buy their first home or guiding a California investor buying a short-term rental in Jackson Hole, NQMF is the lending partner to get it done.

Understanding Asset Depletion Loans for the High-Net-Worth Retiree

Asset depletion loans offer a strategic mortgage solution for retirees with significant assets but minimal recurring income. In many traditional loan underwriting models, income is a cornerstone for approval. However, high-net-worth retirees often have substantial savings, investment portfolios, and retirement accounts—but little to no W-2 income. This creates challenges with conventional lending.

Asset depletion mortgages, which fall under the Non QM Loan category, allow borrowers to qualify using liquid assets instead of employment income. These programs use a formula to translate a portion of those assets into a qualifying income stream. This solution has proven invaluable for affluent retirees who want to buy, refinance, or leverage equity in real estate without tapping retirement income streams.

Why High-Net-Worth Retirees in Rhode Island Are Turning to Asset-Based Mortgages

Rhode Island’s shoreline, charming communities, and accessible healthcare make it a top destination for affluent retirees. Areas like Newport, Barrington, and East Greenwich attract high-income individuals who often retire early or exit traditional employment. These retirees typically hold significant wealth in brokerage accounts, retirement funds, or real estate holdings.

However, despite having high liquidity or net worth, they may show little taxable income. Traditional underwriting doesn’t account for this nuance, often making approval impossible. Asset depletion loans solve this problem by offering a flexible, responsible path to homeownership or refinancing for these borrowers.

How Asset Depletion Mortgages Work

NQM Funding calculates asset depletion income using a simple yet effective formula. Qualified assets are divided by 84 months to derive an income stream. The resulting figure is then applied to traditional debt-to-income (DTI) calculations.

Acceptable asset types typically include checking, savings, money market accounts, stocks, mutual funds, and vested portions of retirement accounts. Under the Flex Supreme program, business assets and restricted stock are not permitted, and asset depletion income cannot be combined with another primary income source.

This structure ensures responsible lending while meeting the needs of a financially stable, low-income retiree segment.

Eligibility Criteria for Asset Depletion Loans at NQM Funding

To qualify under NQM Funding’s Flex Supreme guidelines, a borrower must meet the following standards:

• Minimum credit score: 680 or higher

• Asset seasoning: 3 months of documentation required

• Eligible asset types: U.S.-based accounts only (foreign accounts are not allowed)

• Maximum LTV: 70% for asset depletion (10% haircut from max program LTV)

• Transaction type: Purchase or rate-and-term refinance only (cash-out is not allowed)

These criteria are crafted to balance flexibility with prudent underwriting, especially in a high-value market like Rhode Island.

What Loan Officers Should Know About Sourcing and Documenting Assets

Proper documentation is critical. Borrowers must submit a minimum of three months of asset statements. Funds must be seasoned and held in U.S. financial institutions.

Prohibited asset types include business account funds, foreign funds, recently sold real estate proceeds, and unvested stock. Each asset must be fully liquid and verifiable.

For Flex Supreme borrowers, funds used for closing and reserves must come from seasoned, traceable sources. Gift funds are not allowed for reserves, and business accounts are excluded unless the borrower owns 100% of the business.

Property Types and Occupancy Options for Retired Borrowers

Eligible property types include single-family homes, condos (warrantable and non-warrantable), and PUDs. Borrowers can use asset depletion to purchase a primary residence or second home. Investment properties may qualify under alternative documentation programs, but not under Flex Supreme for asset depletion.

Interest-only loans are available but require careful DTI calculations. Escrow waivers are not allowed on HPML loans or DSCR No Ratio loans. For asset depletion, borrowers must qualify with full PITIA based on amortized terms.

Strategic Use of Asset Depletion for Refinancing in Retirement

Many retirees refinance to lower monthly obligations or access favorable loan terms. While asset depletion loans through NQM Funding don’t allow cash-out, they are excellent for rate-and-term refinancing.

Scenarios include transitioning from interest-only to fixed terms, removing private mortgage insurance, or consolidating primary and secondary liens. As always, there must be a tangible benefit to the borrower, especially for owner-occupied transactions.

Local Market Context: Rhode Island Real Estate and Retiree Appeal

Rhode Island offers a unique mix of lifestyle, access, and investment potential. The state’s coastal communities—especially Newport, Bristol, and Jamestown—are popular with high-net-worth individuals. Median home prices in these areas often exceed $800,000, with luxury properties reaching well into the seven figures.

Retirees are drawn to Rhode Island’s moderate taxes on retirement income, excellent healthcare system, and proximity to Boston and New York City. Asset depletion loans are particularly relevant in this market, where retirees are liquid but prefer to avoid tapping portfolios or triggering taxable events.

The Role of NQM Funding in Non QM Lending for Retirees

As a trusted Non QM Lender, NQM Funding offers tailored solutions for asset-rich, income-light borrowers. Programs like Flex Supreme offer fixed and ARM options, interest-only terms, and LTVs up to 70% for asset-based qualification.

Loan officers benefit from fast turn times, dedicated broker support, and scenario flexibility. NQM Funding also provides a seamless process through their Quick Quote system.

How to Help Your Clients Navigate Rhode Island’s Lending Environment

Local experience matters. From understanding municipal tax structures to navigating condo eligibility in coastal towns, mortgage professionals in Rhode Island have a responsibility to advise accurately.

Help clients evaluate whether their seasonal property qualifies as a second home versus a primary. Collaborate with financial planners to ensure withdrawals from investment accounts don’t conflict with tax strategies or Social Security considerations.

How to Get Started with NQM Funding

Use NQM Funding’s Quick Quote tool to price a deal today. Need a different option? Explore these popular Non QM Loan solutions:

• DSCR Loans for rental property clients

• Bank Statement Loans for self-employed borrowers

• ITIN Loans for non-resident investors

Why Mortgage Brokers Should Leverage Asset Depletion Loans

Rhode Island’s high-end borrowers often defy conventional qualification logic. Asset depletion programs let brokers serve a clientele that’s overlooked by traditional lenders. These loans empower retirees to enjoy the lifestyle they’ve earned—without sacrificing liquidity or altering investment timelines.

If you’re not already offering these products, you’re leaving high-quality leads on the table. NQM Funding makes it easy to get started.

Understanding the Borrower Profile: Affluent Retirees and Their Lending Challenges

Retired borrowers often fall into a misunderstood category when it comes to mortgage lending. Despite having millions in investment portfolios or real estate equity, their lack of steady employment income creates hurdles with conventional lenders. Even retirees drawing from Social Security or small pension plans may not meet income requirements for traditional Fannie Mae or Freddie Mac guidelines.

Asset depletion loans empower these borrowers by valuing their long-term financial planning and savings discipline. Rather than forcing them to liquidate assets or artificially inflate income, these loans provide a responsible path to leverage wealth.

Why Conventional Loans Fall Short for Retirees

Traditional mortgage programs typically require verifiable income streams via tax returns, pay stubs, or W-2 forms. Retirees who are not drawing regular distributions or who strategically delay retirement account withdrawals are at a disadvantage.

Even high-net-worth individuals who manage their wealth wisely can be denied simply because their income does not meet automated underwriting thresholds. This is where asset-based lending becomes a pivotal option.

How Asset Depletion Loans Offer More Than Just Qualification

Asset depletion isn’t just a workaround for income—it’s a powerful financial planning tool. By qualifying based on assets, retirees can preserve tax advantages, avoid early withdrawal penalties, and maintain portfolio performance.

These loans allow borrowers to:

• Purchase a dream retirement home without tapping investments

• Refinance into more favorable terms without altering their tax bracket

• Secure a vacation home while preserving liquidity

Loan officers and brokers who understand this value proposition can become trusted advisors in the retiree wealth market.

Why Rhode Island’s Market Demands Asset-Based Lending Solutions

Rhode Island combines luxury, proximity, and lifestyle in a way that few Northeastern states can match. The Ocean State’s coastal real estate attracts empty nesters, retirees, and second-home buyers. Towns like Watch Hill, Little Compton, and Narragansett feature high-value homes that require creative mortgage solutions.

Because many of these buyers are past their peak earning years, traditional income-based loans don’t serve them well. Asset depletion fills the gap between financial stability and mortgage qualification, enabling Rhode Island borrowers to access properties that reflect their wealth without unnecessary friction.

Working with NQM Funding: Partnering with a Non QM Specialist

NQM Funding has built its platform to support brokers who work with high-net-worth clients. Through its Flex Supreme product line, NQM ensures transparent guidelines, common-sense underwriting, and no overlays that complicate approvals.

As a mortgage broker or loan officer in Rhode Island, partnering with a Non QM Lender like NQM Funding gives you the edge. Whether you’re serving retirees, self-employed professionals, or real estate investors, you’ll find product flexibility and processing consistency.

Additional Scenarios Where Asset Depletion Loans Make Sense

Beyond primary and second homes, asset depletion loans can support unique borrower scenarios:

• Recently retired clients relocating to Rhode Island from higher-cost states

• Divorcees using settlement proceeds to purchase property

• Empty nesters downsizing but wishing to avoid liquidating investments

In all these cases, asset-based lending provides flexibility without compromising underwriting integrity.

Tips for Brokers Navigating the Asset Depletion Process

To streamline your pipeline, consider these tips:

• Submit complete asset documentation upfront

• Confirm asset ownership and access (joint vs. individual accounts)

• Work closely with underwriters on account type classification

• Educate your clients early about what to expect in documentation requirements

By setting clear expectations and understanding the NQM Funding process, you’ll close faster and with fewer conditions.

DSCR Loans: A Smarter Way to Finance Airbnb Investments
Debt-Service Coverage Ratio (DSCR) loans are an increasingly popular tool for financing short-term rental properties, especially in markets like Maine where traditional vacation homes are in high demand. Unlike conventional mortgages that require personal income verification and tax documentation, DSCR loans qualify borrowers based on the property’s income potential. This makes them particularly appealing for real estate investors operating Airbnb and other short-term rental units.

DSCR is calculated by dividing the property’s gross rental income by its PITIA (Principal, Interest, Taxes, Insurance, and Association dues if applicable). A DSCR of 1.0 means the income just covers the expenses, while higher ratios indicate a buffer and typically qualify for better terms.

Because DSCR loans use the property’s cash flow rather than personal income, they offer a flexible pathway to investment for borrowers who may not meet conventional standards—such as self-employed entrepreneurs, investors with multiple properties, or individuals holding assets in an LLC.

Understanding DSCR Calculations and Requirements
The basic formula for DSCR is: Gross Monthly Rental Income ÷ PITIA. To qualify for a DSCR loan with NQM Funding, the ratio should generally be 1.0 or higher. However, more favorable terms are often available when the DSCR exceeds 1.15.

Required documentation typically includes an appraisal with market rent analysis (1007 form), proof of lease agreements, or in the case of Airbnb, 12–24 months of documented rental income from a management company. It’s important to note that AirDNA data is not accepted for income qualification purposes.

Borrowers must ensure their short-term rental income is stable and verifiable. With NQM Funding, the property’s cash flow—not the borrower’s tax returns or W-2s—is the focal point. This opens the door to more flexible underwriting, particularly valuable for self-employed investors or those with complex income streams.
Explore DSCR Loan Guidelines

Why Maine is a Prime Market for Airbnb Investors
Maine’s tourism economy thrives on seasonal demand, particularly from June through October. Coastal towns like Bar Harbor, Camden, Ogunquit, and Kennebunkport attract a steady influx of vacationers. Acadia National Park alone draws over 4 million annual visitors, many of whom seek the comfort of short-term rentals over traditional hotels.

Portland, Maine’s largest city, features a strong local food scene and active short-term rental market. However, some municipalities like Portland and Cape Elizabeth require Airbnb registration, occupancy limits, or proof of primary residence. Investors should verify local regulations with platforms like Property Guard or Vrolio before purchasing an Airbnb property.

Because the summer rental rates in Maine are significantly higher than winter off-season rates, DSCR loans allow investors to capitalize on the high-season performance. With proper documentation and market analysis, investors can leverage seasonal income effectively—even when operating only part of the year.

Using DSCR Loans for Short-Term Rental Properties in Maine
NQM Funding allows Maine investors to finance Airbnb properties with flexibility around documentation. While a full 12- to 24-month Airbnb history is preferred, rental income through a licensed property manager may suffice. Bank deposits can also supplement verification if the income is consistent.

An investor in Bar Harbor might only rent their property from May through October, but still average significant annual income due to high summer rates. This makes DSCR loans ideal for regions with pronounced seasonality. If monthly PITIA is $2,800 and seasonal average income is $3,500 or more, the loan would likely qualify.

Furthermore, many of these investors are building property portfolios across multiple Maine destinations. DSCR loans empower them to move quickly across competitive markets by offering asset-based underwriting and no limits on financed properties.

Borrower Profiles That Benefit Most from DSCR Loans
DSCR loans are ideal for:

• Self-employed borrowers or business owners with irregular income

• Investors with multiple properties and complex tax returns

• Borrowers using LLCs or trusts for real estate holdings

• Out-of-state investors entering Maine’s lucrative vacation market

With NQM Funding, borrowers can title properties in an LLC as long as there’s a personal guarantor on the loan. This flexibility helps investors protect their assets and streamline portfolio management.

Key Loan Terms from NQM Funding

• Up to 80% LTV for qualifying DSCR loans

• Interest-only options available with a 10-year IO period

• Minimum credit score of 620

• DSCR qualifying using interest-only payments is permitted

• No personal income, W-2s, or tax returns required

• Title can be held in an LLC with personal guarantee
  Get a Quick Quote

Location-Specific Considerations for Maine Airbnb Investors
Each city or town in Maine may have its own short-term rental laws. Some key examples:

• Portland: Requires non-owner-occupied STR registration and limits on the number of units

• Bar Harbor: Popular summer market with significant upside; zoning ordinances apply

• Kennebunkport and Ogunquit: High-end clientele, strong seasonal demand, and strict permitting in some areas

York County, home to some of Maine’s most famous beaches and coastal towns, presents ample opportunities for investors looking to capitalize on summer tourism. Local ordinances must be reviewed carefully to ensure compliance.

Cumberland and Hancock counties also present excellent opportunities for Airbnb investments, especially in small towns like Southwest Harbor and Cape Elizabeth. These areas offer high booking demand and are often overlooked by institutional investors, leaving room for smaller portfolio growth.

Advantages of DSCR Loans over Conventional Financing in Maine

• Faster closings due to limited documentation

• Asset-based underwriting simplifies the approval process

• Allows for expansion of Airbnb portfolios without income limits

• No cap on the number of financed properties (except DSCR No Ratio limits)

• Available to foreign nationals and LLCs under specific guidelines

For investors who want to scale fast or who are buying several properties in vacation zones like Acadia or coastal southern Maine, DSCR loans offer unmatched efficiency. Paired with the flexibility to avoid DTI calculations or personal tax returns, these loans streamline the process from contract to close.

Common Questions Brokers May Encounter from Maine Airbnb Investors

• What income documentation is acceptable for DSCR loans?
  Management company statements, 1040s with Schedule E, or bank deposits with consistent Airbnb activity.

• Can I hold title in an LLC?
  Yes, with a personal guarantee.

• What if my Airbnb doesn’t have a long-term lease?
  Lease is not required. Short-term rental history via statements or appraisals suffice.

• Can I refinance an existing property into a DSCR loan?
  Yes. Cash-out options are available, subject to property value and seasoning.

DSCR and Bank Statement Loans: Combining Strategies
For borrowers not qualifying purely on DSCR, NQM Funding offers additional programs like:

• 12- or 24-month personal or business bank statements

• P&L-only documentation
  These can serve as alternatives for self-employed investors or those expanding into new properties.
  Explore Bank Statement Loans
  Explore ITIN & Foreign National Programs

Additional Considerations When Working With Airbnb Financing in Coastal Maine
When underwriting a DSCR loan for an Airbnb investment, it’s important to factor in the cyclical nature of tourism in Maine. For instance, occupancy rates in towns like Camden or Rockport may drop significantly during the winter months. Lenders and investors alike should prepare for off-season fluctuations by building in income buffers or maintaining reserves.

Some lenders, including NQM Funding, allow borrowers to show seasonal income averaged over 12 months. This method accounts for peak and off-peak performance, which is especially useful in states like Maine where year-round occupancy is rare. As such, presenting historical monthly income and using appraiser-supported market rent analyses becomes vital.

Airbnb income projections are typically validated with:

• Property management income statements

• Historical booking summaries from platforms like Airbnb and Vrbo

• Rent schedule and occupancy trends based on similar properties in the region

Another vital consideration is insurance. Properties located along Maine’s coastlines may face higher insurance premiums due to exposure to storms and sea-related risks. Investors must secure adequate vacation rental insurance that covers liability, damages, and loss of income.

Understanding the value of neighborhood comps is another local nuance. In small towns, comps may be few and far between, especially if the target home is not located near a dense tourist corridor. In such cases, DSCR appraisals may require extra lead time or supplemental documentation to justify projected rental performance.

Evaluating Airbnb vs. Long-Term Rental Options in Maine
While many investors focus on short-term rentals, others may also consider long-term rental strategies in Maine’s cities like Bangor, Lewiston, or Augusta. In these locations, year-round tenant demand may offer greater income stability.

A hybrid model can also work well. Investors could rent short-term during the busy seasons and then offer monthly stays during the off-season. This dual-purpose model can help maintain a strong DSCR while avoiding prolonged vacancies. The key is keeping detailed records and ensuring all tenant contracts are in writing.

How Brokers Can Use DSCR Products to Grow Their Book
Mortgage brokers and loan officers targeting real estate investors can use Maine’s booming coastal market to create niche lead funnels. Marketing DSCR products to investors in Boston, New York, and other nearby metros—where affordability is limited—can drive out-of-state borrower interest.

Positioning yourself as an expert in Non QM Loans, especially those tailored to vacation markets, enhances your credibility and allows you to offer custom solutions for borrowers who may be turned away by traditional lenders.

Offering soft-pull prequalifications and emphasizing the ability to close in LLCs can attract high-quality investor clients who plan to scale. By educating borrowers about flexible underwriting, streamlined closings, and interest-only options, brokers can lock in more deals, faster.

Lastly, it’s crucial to establish partnerships with realtors in coastal Maine markets. These relationships provide early access to new listings and potential clients who need DSCR loan guidance at the offer stage. When paired with NQM Funding’s loan solutions, this makes for a winning formula.

Helping Your Clients Win with a Non QM Lender
As a mortgage broker or loan officer, presenting Maine DSCR loans as a tool for Airbnb investors can set you apart. With seasonal income, flexible guidelines, and options for LLC vesting, these loans meet the needs of modern real estate investors.

Partnering with a Non QM Lender like NQM Funding means you can offer innovative solutions, faster turnarounds, and tailored loan products. Encourage clients to act fast in competitive markets by starting with a
Quick Quote.

Understanding the 1099 Income Challenge in Traditional Lending

Across Kansas, thousands of hardworking professionals—contractors, gig workers, real estate agents, and consultants—form the backbone of the state’s entrepreneurial economy. Yet, despite their strong income and consistent work histories, these self-employed individuals often face steep barriers when applying for traditional mortgage loans.

Why? Because traditional lenders heavily favor borrowers with W-2 income, steady payroll deposits, and tax returns that paint a consistent, predictable financial picture. Unfortunately, 1099 workers—who may deduct business expenses or have fluctuating monthly revenue—often appear riskier to underwriters, even when their net income is strong.

For example, a Kansas-based handyman may earn $100,000 annually but write off $40,000 in expenses. To a conventional lender, he only “makes” $60,000, which may not be enough to qualify. These outdated rules leave many self-employed Kansans without viable mortgage options, even when they are more than capable of handling a monthly payment.

What Are 1099 Loans? A Non QM Lending Solution

1099 loans are part of the growing category of Non QM Loans, which are mortgages that don’t follow the traditional Qualified Mortgage guidelines. These loans were created to address the needs of borrowers who fall outside the standard underwriting box, especially those who earn income in non-traditional ways.

Rather than focusing strictly on tax returns, 1099 loans allow self-employed borrowers to qualify using their 1099 forms from the past one or two years. Some programs even accept year-to-date profit and loss statements, CPA letters, or business bank statements to validate income.

This flexible approach helps Kansas contractors, freelancers, and small business owners demonstrate their true earning power without being penalized for taking legitimate deductions or structuring their finances efficiently for tax purposes.

Borrowers may also choose from different repayment structures such as interest-only options, fixed-rate terms, or hybrid ARM programs, giving them greater control over cash flow.

To learn more about these documentation types, check out our Bank Statement and P&L Loan page.

Key Features of Kansas 1099 Loan Programs

Here are some of the standard features borrowers in Kansas can expect when applying for a 1099 loan through a Non QM lender like NQM Funding:

• Loan amounts up to $3 million

• LTV up to 90% (10% down payment minimum on primary homes)

• Minimum FICO score of 620

• No mortgage insurance (even above 80% LTV)

• Flexible debt-to-income (DTI) limits, often up to 50%

• Available for purchases, cash-out refinances, or rate/term refis

• Eligible for primary, secondary, and investment properties

• Interest-only payment options available

• Multiple income documentation options including:

  • 1099s from the past 1–2 years

  • P&L statements (CPA-prepared or self-prepared)

  • 12 or 24 months of personal or business bank statements

These options empower self-employed borrowers across Kansas to qualify based on how they actually earn and spend money, rather than forcing them into a narrow tax-return-based framework.

Who Can Benefit from 1099 Loans in Kansas?

1099 loans are a perfect fit for a wide variety of Kansas workers, including:

• Independent contractors in construction, HVAC, or remodeling

• Real estate agents, brokers, and leasing professionals

• Rideshare and delivery drivers (Uber, Lyft, Instacart, etc.)

• Freelance digital marketers, designers, and developers

• Agricultural consultants and ranchers

• Healthcare professionals operating private practices

• Artists, musicians, and self-publishing authors

These borrowers often maintain strong income and financial discipline but don’t have the standard income proof that traditional lenders demand.

Whether you’re based in Wichita, Overland Park, Kansas City, or a rural area, you can take advantage of these flexible programs.

Real Estate Market Trends Across Kansas for Self-Employed Buyers

Kansas offers one of the most affordable and stable housing markets in the country. Here’s a breakdown of a few notable cities:

• Wichita: Home to a growing aerospace and manufacturing industry, Wichita’s median home price hovers around $220,000. The city is ideal for first-time homebuyers, tradespeople, and those looking to enter the market affordably.

• Overland Park: A suburb of Kansas City, Overland Park has higher home values (median ~$430,000) but strong rental demand and appreciation trends. It’s a prime target for self-employed professionals with higher income or those purchasing investment properties.

• Topeka: As the state capital, Topeka offers great values for multi-unit and mixed-use properties. Median prices sit near $180,000, making it attractive for cash-flow-focused investors using DSCR or 1099 loans.

• Lawrence: A college town with high rental turnover, ideal for investors and side-income earners.

• Hays and Manhattan: Rural markets that still present stable appreciation with lower entry points for self-employed buyers.

The diversity of Kansas markets allows 1099 borrowers to choose between affordable entry-level housing, lucrative rental properties, or spacious suburban homes—all under lending programs tailored to their income type.

Why Loan Officers in Kansas Should Offer 1099 Loan Programs

As a mortgage broker or loan officer, offering 1099 loans can open a significant revenue stream. Kansas has over 200,000 self-employed individuals—many of whom have been denied or discouraged by conventional banks. By presenting a solution that aligns with how these professionals actually operate, you become an invaluable resource.

Here are a few ways to promote 1099 loans effectively:

• Partner with CPAs and tax preparers to refer clients whose income is misrepresented by their tax returns.

• Host local seminars or webinars on “Mortgage Options for the Self-Employed” in cities like Manhattan, Salina, or Olathe.

• Work with real estate agents who specialize in small business clients, gig workers, or first-time buyers.

• Connect with coworking spaces and small business associations to provide workshops.

• Use tools like the Quick Quote form to streamline prequalifications for your self-employed prospects.

Loan officers can also build long-term client relationships by offering annual mortgage checkups, refinancing options when rates drop, or assisting clients in scaling from primary residences to investment properties. Education and consistent communication will differentiate you in this niche market.

Kansas-Specific Lending Considerations

While Kansas does not impose specific restrictions on 1099 loan products, it’s important to note the benefits that borrowers in the state enjoy:

• No state-level overlays or prohibitions on Non QM products

• Clear title and escrow processes in most counties

• Competitive property insurance and tax rates

Moreover, NQM Funding confirms that Kansas is a fully eligible state for its 1099, Bank Statement, and Foreign National loan products. This differentiates Kansas from states like Nevada, Minnesota, North Dakota, Utah, and Oregon—where these loans may not be available.

Kansas also has many counties where affordability still reigns supreme. Areas such as Cowley, Montgomery, and Crawford counties offer homeownership opportunities for self-employed buyers at price points under $150,000, making them excellent matches for borrowers with moderate 1099 income.

Alternative Documentation Programs for Kansas Borrowers

Not all self-employed borrowers receive 1099s. Some are paid directly into bank accounts or manage multiple income streams that aren’t easily captured on a single form. That’s where other Non QM documentation types can help, including:

• Bank Statement Loans: Use 12 or 24 months of personal/business deposits to calculate monthly income.

• Profit and Loss Only: Rely solely on a CPA-prepared P&L statement without the need for tax returns.

• Asset Utilization: Convert qualifying liquid assets into monthly income.

• ITIN Loans: For borrowers without a Social Security number but with valid tax ID.

These options provide flexibility for borrowers who have seasonal income, large deposits from consulting work, or asset-based wealth that does not show up on a pay stub.

Explore these options further on our ITIN and Foreign National Loan page.

Putting It All Together: 1099 Loans Help Kansas Borrowers Succeed

With strong demand in the housing market and a growing independent workforce, Kansas is uniquely positioned to benefit from flexible mortgage programs like 1099 loans. These solutions remove the barriers that prevent creditworthy self-employed professionals from owning or refinancing homes.

Scenario: A freelance software developer in Kansas City brings in $150,000 per year via contract work but only shows $70,000 in taxable income due to business deductions. Using a traditional loan, he’s denied a mortgage. With a 1099 loan from NQM Funding, he’s approved based on his actual gross income from 1099s and a CPA-verified P&L.

Scenario: A couple in Overland Park runs a home-based catering business. With fluctuating income and no W-2s, they qualify for a home using 24 months of business bank statements, locking in competitive terms and no MI.

Scenario: A self-employed real estate photographer in Lawrence is looking to buy her first investment property. Her average monthly deposits exceed $8,000, but she shows minimal net income after deductions. A bank statement loan allows her to qualify and begin building long-term wealth.

Rather than relying on outdated income criteria, NQM Funding and other Non QM Lenders are helping loan officers offer smarter alternatives. Whether you’re helping a Wichita handyman buy his first home or a Kansas City freelancer invest in a duplex, 1099 loans give you the tools to close more deals and serve more people.

Visit NQMF.com today to connect with our experienced Non QM underwriting team or launch a loan scenario through our Quick Quote tool. Let’s make homeownership possible for the workers building Kansas from the ground up.

Understanding Interest-Only Loans and Their Strategic Value

Interest-only loans are a specialized mortgage product that allow borrowers to pay only the interest on a loan for a specified initial period, typically the first 10 years of the loan’s term. During this time, the borrower does not pay down the loan’s principal, which means monthly payments are substantially lower than with a fully amortizing loan.

This feature is particularly attractive to borrowers who prioritize cash flow over equity build-up in the early years of ownership. Real estate investors, high-net-worth individuals, and self-employed professionals often fall into this category. By deferring principal payments, these borrowers can keep more cash on hand to reinvest in additional properties, their businesses, or other financial vehicles.

After the interest-only period concludes, the loan converts into a fully amortizing structure where both interest and principal are due—usually over the remaining 20 or 30 years. While this does increase monthly payments later, the flexibility and affordability in the early years often outweigh the long-term trade-off for strategic borrowers.

Why Interest-Only Loans Are Gaining Traction in Vermont’s Second-Home Market

Vermont has long been a magnet for second-home buyers due to its four-season appeal, charming small towns, ski resorts, and pristine natural landscapes. As remote work becomes more normalized, many buyers are reevaluating what constitutes a primary versus a secondary residence, with some using their second homes as part-time work retreats.

Locations like Stowe, Killington, Woodstock, and Lake Champlain have experienced an uptick in demand. As property prices continue to rise in these in-demand areas, interest-only loans are emerging as an important financing option that boosts buyer flexibility.

For example, a buyer looking to purchase a $900,000 lakefront property in Burlington might face significant monthly payments with a conventional mortgage. With an interest-only loan, they can afford the same property while keeping payments lower during the first decade, freeing up capital to invest in furniture, renovations, or simply maintain a more comfortable liquidity position.

In highly competitive markets where quick action is necessary, the additional buying power of interest-only loans can be the edge borrowers need.

NQM Funding’s Interest-Only Loan Highlights

NQM Funding, a premier Non QM Lender, offers a comprehensive suite of interest-only mortgage solutions designed specifically for today’s diverse borrower base. Their offerings include:

• 30- and 40-Year Fixed Interest-Only Loans: Featuring a 10-year interest-only period followed by amortization. Ideal for buyers who want long-term stability in rate.

• 5/6 and 7/6 Adjustable-Rate Mortgages (ARMs): Paired with a 10-year interest-only window, these provide low introductory rates and are ideal for borrowers planning to sell or refinance before the amortization kicks in.

• Loan Terms Up to 480 Months: Enables highly tailored repayment schedules with 20- or 30-year amortization options after the IO period.

• Qualification Flexibility: NQM Funding evaluates borrower capacity using the fully amortized payment for standard loans and allows the use of IO payments for qualifying under DSCR programs.

• High LTV and Competitive Credit Requirements: Up to 80% LTV and minimum credit score of 620 in many cases.

These features are designed to help brokers serve clients who fall outside agency guidelines but remain highly creditworthy and financially capable.

How Interest-Only Loans Boost Affordability and Flexibility

Let’s break down an example to highlight the financial impact of interest-only payments.

A borrower takes out an $800,000 loan at a 7.25% interest rate. On a fully amortizing 30-year loan, the monthly payment would be approximately $5,457. Under a 10-year interest-only loan, that monthly payment drops to just $4,833—saving the borrower over $600 a month.

That $600 per month can go a long way. For a second-home buyer in Vermont, it may fund annual maintenance, property management, or even help offset the seasonal revenue gap if the home is rented on a short-term basis. For a high-income professional, that savings could go toward building reserves, investing in another property, or making improvements that increase the home’s long-term value.

Location-Specific Considerations for Vermont Borrowers

Each region in Vermont comes with its own real estate rhythm:

• Stowe: A mecca for ski enthusiasts and luxury homebuyers. Homes often range from $800,000 to $2 million.

• Woodstock: Offers historic New England charm and attracts buyers who prefer a quiet, picturesque setting.

• Lake Champlain Corridor: Known for waterfront estates, vacation rentals, and homes that appeal to seasonal and retirement buyers.

Vermont towns like Burlington and South Burlington have implemented regulations on short-term rentals. This means borrowers planning to use income from platforms like Airbnb must understand whether local policies allow such use—and how it affects loan qualification, especially for DSCR.

Also, Vermont has a strong tradition of conservation and zoning laws, which can affect future property improvements or land use. It’s important for loan officers to work with clients to align loan structure with local rules and property goals.

Ideal Borrower Profiles for Vermont Interest-Only Loans

The most common borrower profiles benefiting from interest-only loans include:

• Self-Employed Entrepreneurs: Particularly in industries like hospitality, marketing, or consulting, where income can vary seasonally or be backloaded.

• Real Estate Investors: Especially those planning to flip or renovate and refinance before amortization begins.

• Affluent Retirees or Pre-Retirement Professionals: Who want to preserve cash while transitioning into a second-home lifestyle.

• High-Income Professionals: Such as doctors or attorneys with deferred income, stock options, or variable bonuses.

In all cases, the Vermont setting enhances the appeal of an interest-only strategy, especially when the home serves dual purposes—personal use and eventual income generation.

Using Bank Statement or P&L Documentation to Qualify

NQM Funding’s nontraditional income documentation options can be a lifeline for buyers who don’t neatly fit into W-2 or tax return categories. Their Bank Statement Loan and P&L programs allow borrowers to qualify using real-world income patterns.

• 12- or 24-Month Personal or Business Bank Statements: Highlighting consistent deposits

• CPA or EA-Prepared Profit and Loss Statements: Often used for borrowers with complex portfolios or multiple income sources

• Asset Depletion Options: For borrowers with significant reserves but low current income

These programs are especially valuable in Vermont where many buyers are entrepreneurs, remote workers, or business owners purchasing second homes.

Comparing Interest-Only Loans to DSCR Loans for Second Homes

When advising clients, mortgage brokers should consider both interest-only and DSCR options.

• Interest-Only Loans: Best for personal use homes, or where borrower income can qualify the loan. Offers initial payment relief and strategic liquidity.

• DSCR Loans: Evaluate the property’s rental income potential rather than borrower income. Ideal for vacation rentals or Airbnbs.

In Vermont, many properties straddle both use cases. A buyer may use the home personally for the first two years, then transition it into a full-time rental. Starting with an IO loan and later refinancing into a DSCR product is a savvy two-stage approach.

Explore DSCR Loan Options

Foreign National and ITIN Borrower Access to Vermont Properties

Vermont is gaining traction among international buyers who seek U.S. real estate stability. NQM Funding enables Foreign National and ITIN borrowers to access interest-only structures with:

• No Social Security Number required

• Acceptance of international credit reports or alternative credit

• Eligibility based on bank reserves and foreign income documentation

This opens the market to a broader range of clients, including Canadians buying ski homes or Latin American investors seeking diversification.

Working With a Non QM Lender for Tailored Mortgage Solutions

Unlike traditional lenders, NQM Funding takes a story-based approach to underwriting. Every borrower’s situation is unique, especially in the Vermont second-home market. A Non QM Loan may be the difference between a deal falling apart and a seamless closing.

Whether a client is buying a ski chalet with seasonal rental goals or acquiring land for future development, NQM’s flexible guidelines and real-time broker support help deals close fast and efficiently.

Use the Quick Quote Tool to assess options without delay.

Next Steps for Loan Officers and Brokers

For mortgage professionals in Vermont and beyond, interest-only loans are an essential part of a second-home lending toolkit. Understand your borrower’s cash flow, investment plans, and exit strategy to recommend the best structure.

When used correctly, these loans don’t just finance a property—they enable a lifestyle.

Common Misconceptions About Interest-Only Loans

There’s a widespread misconception that interest-only loans are inherently risky or only suitable for speculative investors. In reality, when used strategically, these loans are a powerful tool for managing cash flow and creating investment leverage.

Critics often cite the risk of payment shock when the interest-only period ends. While it’s true that payments rise during amortization, responsible borrowers with a clear financial plan rarely face difficulties. In fact, many refinance or sell the property before principal payments begin.

Another myth is that these loans don’t build equity. While it’s true that principal isn’t reduced during the IO period, appreciation in Vermont’s housing market still builds equity passively. Plus, borrowers can always make additional payments toward principal voluntarily, offering even more flexibility.

Understanding these nuances helps brokers properly educate their clients and present interest-only products as smart financial planning tools—not just short-term solutions.

Market Outlook and Final Considerations

With interest rates expected to fluctuate and real estate inventory tightening in Vermont’s vacation markets, the role of creative mortgage products is more important than ever. Buyers who hesitate to purchase due to affordability concerns might find that an interest-only loan offers a temporary financial bridge.

For example, buyers anticipating a future liquidity event—such as the sale of another property, a business payout, or an inheritance—can use the IO period to comfortably manage the mortgage until their financial situation changes.

As local inventory remains constrained, especially in resort communities, having a loan product that enables fast, confident offers is crucial. Interest-only loans help your clients act decisively in a competitive market without sacrificing long-term financial health.

The versatility of these loans—when backed by a knowledgeable Non QM Lender like NQM Funding—makes them a must-consider tool for brokers serving Vermont’s evolving second-home segment.

Understanding Stated Income Loans and Their Relevance Today

Stated income loans have evolved significantly since their original inception. Once known as “liar loans,” these products fell out of favor following the 2008 financial crisis. However, today’s stated income offerings—now falling under the broader category of Non-QM loans—are far more responsible and regulated. Modern stated income loans require alternative documentation to verify the borrower’s ability to repay, ensuring both flexibility and compliance.

This loan category has become indispensable for borrowers who don’t fit the traditional W-2 income model. For mortgage brokers and loan officers in Delaware, these flexible programs offer a strategic opportunity to serve underserved markets.

Who Benefits Most from Stated Income Loans in Delaware?

Stated income loans are tailored for individuals with variable income streams. This includes:

• Commission-based workers: Real estate agents, financial advisors, and sales professionals often experience income volatility that makes traditional loan qualification difficult.

• Seasonal workers: Industries like tourism, agriculture, and retail frequently rely on labor that earns disproportionately during certain months.

• Self-employed borrowers: Entrepreneurs and freelancers may show low taxable income due to deductions but have high gross revenue.

• Gig economy professionals: Drivers, delivery service providers, and independent contractors are growing segments in today’s economy.

In all these cases, a stated income loan allows the borrower to qualify based on actual income trends—often verified through bank statements, P&L statements, or 1099s.

Why Delaware is an Ideal Market for Stated Income Loan Programs

Delaware’s economic structure is well-suited for stated income programs. The state’s coastal tourism industry fuels seasonal employment, especially in areas like Rehoboth Beach and Lewes. Meanwhile, Wilmington and Dover support a strong base of self-employed professionals and commission earners in finance, legal, and healthcare services.

Sussex County, in particular, is known for its seasonal economy. Here, many workers rely on tourism-based jobs that peak during the summer. Traditional mortgage products rarely accommodate these fluctuations, creating a need for alternative income verification.

Additionally, Delaware’s affordability compared to neighboring states makes it an attractive choice for out-of-state investors and first-time buyers alike. Many of these buyers come with self-employed or variable-income profiles, making the state a prime market for flexible underwriting.

Delaware-Specific Lending Considerations

When working with borrowers in Delaware, mortgage professionals must account for several local nuances:

• Real estate types: Delaware features a mix of rural and coastal properties, many of which are second homes or investment units.

• Legal compliance: Delaware is broker-friendly but demands adherence to Non-QM compliance and proper disclosure practices.

• Prepayment penalties: These are allowed on investment properties under Delaware law, offering brokers flexibility in pricing loan options.

• No MI required: Stated income programs through NQM Funding do not require mortgage insurance, enhancing affordability.

Key Features of NQM Funding’s Stated Income Loan Options

NQM Funding offers powerful solutions through their Non QM Loan programs. Here are highlights relevant to Delaware-based borrowers:

• Up to 90% LTV for purchases and 80% for cash-out refinances

• Minimum credit score of 620 for most programs

• No mortgage insurance required, even on high LTV loans

• Loan amounts starting from $125,000

• Property types: primary, secondary, and investment homes

• Available under multiple income documentation types

• Interest-only options available for flexible monthly budgeting

These features are especially advantageous for borrowers whose income does not translate neatly onto a W-2.

Underwriting Flexibility That Matters

Unlike conventional loans, Delaware stated income programs offer a range of underwriting flexibilities:

• Borrowers may qualify using Bank Statements, P&L only, or 1099s

• No need for tax returns or traditional employment verification

• One-year self-employment history accepted in many cases

• Asset utilization allowed to supplement income

• No housing history required for select programs

Such flexible guidelines are essential when dealing with seasonal, cyclical, or project-based income.

How These Loans Work in Practice

Mortgage professionals in Delaware can structure a variety of loan types using stated income documentation:

• Purchase Loans: Ideal for seasonal workers transitioning into homeownership with sporadic income.

• Cash-Out Refinances: Useful for self-employed borrowers looking to reinvest into their businesses or eliminate debt.

• Rate and Term Refinances: Allows clients to move into more favorable terms without the strict full doc scrutiny.

Even investor clients can benefit through DSCR loans, a related Non-QM program for rental properties with no personal income verification.

Alternative Income Documentation Options

NQM Funding supports several documentation options to suit Delaware borrowers:

• Bank Statement Programs – 2, 12, or 24-month options

• P&L Only – Requires CPA-prepared profit and loss statement

• 1099 Income Programs – Great for contractors and gig economy workers

• Foreign National and ITIN Loans – Expands eligibility for non-citizens

These documentation types allow brokers to customize the experience based on borrower profiles.

When Stated Income is the Best Fit Over Full Doc

Full doc loans may still be ideal for traditionally employed borrowers. However, stated income options outperform when:

• Clients have high gross revenue but low taxable income

• Business reinvestment reduces net profits on tax returns

• Borrowers recently switched to self-employment

• Seasonal employment affects income verification

• Clients need interest-only payment options for liquidity management

How to Start Offering Delaware Stated Income Loans to Your Clients

Mortgage brokers in Delaware can gain a competitive edge by offering this underserved loan type. Start by:

• Using the Quick Quote tool to prequalify borrowers

• Partnering with a reputable Non QM Lender like NQM Funding

• Educating referral partners on how stated income loans can support commission-based clients

• Training your team to evaluate borrower income trends and present flexible documentation options

Compliance and Fair Lending Considerations

Stated income loans must still meet Ability to Repay (ATR) standards. NQM Funding ensures compliance by:

• Accepting verifiable third-party bank statements or CPA docs

• Requiring borrower affidavits or declarations of business purpose (for investment properties)

• Prohibiting predatory structures, as outlined in NQM’s zero-fraud policy

• Ensuring transparent loan disclosures in accordance with federal and Delaware-specific law

Why Mortgage Brokers Should Offer This Product in Delaware

For mortgage brokers and loan officers, stated income loans represent a high-opportunity, low-competition offering. Key advantages include:

• Market differentiation in a saturated lending environment

• Ability to serve a wider range of clients, especially those denied by traditional banks

• Higher loan volume due to underserved borrower pools

• Cross-sell opportunities into DSCR and investor products

• Repeat and referral business from clients impressed by your flexible solutions

By providing tools for borrowers to qualify on real-world terms, brokers solidify long-term relationships while expanding their reach in Delaware.

Challenges Faced by Traditional Borrowers in Delaware

In Delaware, many borrowers are being left behind by conventional underwriting. Traditional loan programs favor predictable income and straightforward employment history, which can disqualify deserving applicants such as:

• Contract professionals in Wilmington’s legal and consulting industries

• Gig economy workers serving Newark’s university and student housing markets

• Shoreline business owners whose profits spike only during summer months

Stated income loans help overcome these gaps by letting borrowers qualify on income patterns reflective of their real financial strength, not just IRS-reported figures.

Case Example: Real-World Borrower Profile

Consider a borrower in Rehoboth Beach who owns a seasonal kayak rental business. During summer, their revenue surges, but off-season income is minimal. Their tax returns reflect modest net profits due to business write-offs. Under full doc rules, this borrower wouldn’t qualify.

However, using a 12-month business bank statement program through a Non QM Loan, the borrower’s gross deposits illustrate strong earning capacity. This scenario demonstrates how brokers can convert challenging files into closed loans with the right tools.

Marketing Tips for Brokers Offering Stated Income Loans

To successfully originate more stated income loans in Delaware:

• Host webinars or seminars for real estate agents who work with commission-based clients

• Run digital ads targeting freelancers, business owners, and seasonal workers in Sussex and Kent counties

• Use testimonials from past self-employed clients (while maintaining compliance)

• Offer bilingual materials to better reach the growing Hispanic and immigrant populations eligible under ITIN guidelines

• Share blog content or SEO articles addressing common myths about Non-QM lending

Working with a Partner That Understands Non-QM

NQM Funding is uniquely positioned to support brokers offering flexible solutions like Delaware stated income loans. With fast approvals, white-glove service, and technology to streamline the submission process, brokers get the support they need to scale their Non-QM pipeline.

In addition to loan programs, NQM provides resources like:

• Scenario support and live pre-underwriting

• Income analysis tools for non-traditional documents

• Dedicated broker portal and marketing materials

• Educational content to help brokers navigate compliance standards

These services enable brokers to expand their reach and deliver better experiences to clients who don’t fit inside traditional lending boxes.

Future of Stated Income Lending in Delaware

As Delaware’s economy continues to evolve, so too does the demand for flexible mortgage options. The rise of remote work, growth in entrepreneurship, and increased homeownership among younger demographics point to a future where more borrowers will require alternatives to traditional documentation.

Stated income loans, when responsibly underwritten, provide the perfect bridge. Delaware’s housing market shows resilience, with appreciation trends in Middletown, Milford, and Bear driven by relocation and investment. These buyers often have strong cash flow but limited tax documentation, making Non QM Loans a natural fit.

For mortgage brokers looking ahead, this trend represents a significant business development opportunity. By positioning themselves as Non-QM experts, brokers can capture more of the market share while helping borrowers achieve homeownership or investment goals on their own terms.

Stay current, stay compliant, and most importantly—stay flexible. The future of lending in Delaware is already here, and it begins with stated income solutions built for the real world.

Understanding ITIN Loans and Their Purpose

An ITIN (Individual Taxpayer Identification Number) loan is a specialized mortgage product designed to help individuals without a Social Security number obtain home financing. Typically issued by the IRS to non-citizens for tax purposes, an ITIN allows borrowers to demonstrate income and creditworthiness without traditional documentation. For immigrant families, especially those who are undocumented or working toward legal residency, ITIN loans offer a critical pathway to homeownership.

At NQM Funding, LLC, we recognize the barriers that prevent many qualified immigrant borrowers from securing financing through conventional methods. Our Select ITIN loan program expands opportunities with flexible documentation standards, inclusive credit evaluation, and a focus on responsible lending.

The Landscape of Immigrant Homeownership in New England

New England is home to a diverse immigrant population, and New Hampshire is no exception. With strong communities in cities like Manchester, Nashua, and Concord, immigrant families make up a vital part of the local economy. However, due to strict traditional lending rules, many face significant hurdles when trying to purchase a home.

The ITIN loan product serves as a lifeline for these families, helping to close the gap between desire and access. From language barriers to non-traditional income streams, standard loans often exclude borrowers who are more than capable of sustaining a mortgage. NQM Funding addresses these challenges by offering a loan option designed with flexibility and inclusion in mind.

Eligibility Requirements for New Hampshire ITIN Loans

The Select ITIN loan program requires applicants to present alternative forms of identification and proof of income. Borrowers must have a valid ITIN, government-issued photo ID (such as a passport or consular ID), and a minimum two-year history of using the ITIN for tax purposes. Unlike many lenders, NQM Funding accepts alternative credit histories and non-traditional documentation for employment and housing.

Borrowers must demonstrate a 12-month housing/rental history with no late payments. If they own their home free and clear, they’re considered to have an acceptable history. For those who lack full credit profiles, alternative tradelines such as utilities or cell phone bills may be accepted. Employment documentation varies based on work status and can include WVOEs, personal or business bank statements, or signed 1040s.

A minimum of two credit scores is generally required, but borrowers with a single score may still be eligible if sufficient tradeline activity is verified. Gift funds are permitted under certain conditions, with owner-occupied homes requiring a 5% personal contribution and second homes requiring 10%. These funds cannot be used toward reserves, and are not allowed for investment properties.

Loan Terms, Rates, and Program Benefits

NQM Funding’s Select ITIN loans are available in fixed-rate and ARM formats. Borrowers may choose from 15-, 30-, or 40-year fixed options, as well as adjustable-rate mortgages with interest-only features. Maximum DTI is 50%, and no mortgage insurance is required on any loan programs.

Escrow impounds are mandatory, meaning taxes and insurance are built into the monthly payment. These loans do not allow escrow waivers, ensuring payments are properly managed and reducing borrower risk. With a focus on sustainable ownership, all applications are reviewed using prudent underwriting to ensure the borrower’s ability to repay.

How ITIN Loans Differ from Other Non-QM Products

Compared to Foreign National and DSCR loan options, the ITIN loan offers more personalized documentation standards. Foreign National loans typically require borrowers to reside and earn income abroad, while DSCR loans focus on rental income rather than borrower income. The ITIN loan centers on personal residency, making it ideal for immigrants seeking primary or second homes in the U.S.

Some borrowers may be better served by NQM Funding’s Bank Statement Loan or Profit & Loss Loan programs, particularly those who are self-employed or lack traditional documentation. However, if an applicant has a stable history of ITIN filings and sufficient income to qualify, the ITIN program typically offers more favorable terms.

The Application Process for ITIN Borrowers in New Hampshire

Applying for an ITIN loan with NQM Funding begins with a simple Quick Quote. Once pre-qualified, borrowers will provide identification, proof of income, housing history, and documentation supporting their creditworthiness. Depending on the documentation type, this could include two years of signed 1040s, WVOEs, or business bank statements.

The underwriting process is designed to be inclusive, allowing for varied income verification and accepting non-traditional tradelines where necessary. All applications are subject to a rigorous but reasonable review to ensure the loan fits the borrower’s ability to repay.

Strengthening New Hampshire Communities Through ITIN Loans

ITIN loans do more than help individuals—they stabilize neighborhoods and promote generational wealth. As more immigrant families transition from renting to owning, they reinvest in local economies, contribute to property taxes, and support long-term community development.

In New Hampshire, where the housing market remains competitive yet accessible compared to major metros, these loans enable qualified borrowers to secure homes they might otherwise be excluded from. Local businesses benefit, school enrollment becomes more consistent, and community ties grow stronger.

Local Market Insights: ITIN Borrowers in New Hampshire

Immigrant populations in Manchester and Nashua are particularly well-positioned to benefit from ITIN loans due to their economic diversity and housing availability. According to regional housing data, the median home price in New Hampshire is more affordable than in neighboring Massachusetts, opening opportunities for immigrant families looking to establish long-term roots.

NQM Funding’s loan program works well with the state’s smaller multifamily properties—especially 2–4 unit buildings—where owners can live in one unit while renting out others. This strategy helps offset mortgage costs while building equity.

Addressing Common Questions and Concerns

Many brokers and borrowers ask: What if the client only has one score? At NQM Funding, one credit score may be sufficient if there’s ample tradeline activity or alternative credit documentation. Can gift funds be used? Yes, but only within the program’s defined limits. How does this compare to FHA? While FHA loans can work for some immigrants, they require a Social Security number, making ITIN loans the only option for many.

For more details, visit our ITIN Loan Guidelines page.

The Role of Mortgage Brokers in ITIN Lending

Mortgage brokers play a crucial role in the ITIN loan process. From language support to helping compile documentation, brokers act as trusted advisors for immigrant borrowers navigating a complex system. They also open new channels of business for themselves by reaching underserved communities.

Offering Non QM Loans through NQM Funding gives brokers the chance to serve markets that traditional lenders cannot, building long-term loyalty and meaningful relationships along the way.

Call to Action for New Hampshire Loan Officers

If you’re a mortgage professional in New England, now is the time to expand your services. With NQM Funding’s ITIN loan program, you can provide real solutions for immigrant families while growing your business. Use tools like Quick Quote to streamline the application process and DSCR Loans for investor clients seeking additional options.

By working with an experienced Non QM Lender, you’re not just writing loans—you’re expanding access to the American dream.

Exploring More Documentation Scenarios for ITIN Borrowers

In many cases, borrowers may not have access to traditional W-2s or tax returns, especially if they are self-employed. NQM Funding’s ITIN program addresses this by allowing for income verification through other channels, such as 12 or 24 months of personal or business bank statements. This method evaluates cash flow to determine repayment ability, which is ideal for individuals who run small businesses or work in the gig economy.

In addition, Profit and Loss statements prepared by a CPA can be used for qualifying income, particularly when tax filings are delayed or do not reflect the full financial picture. These options provide much-needed flexibility while ensuring loans are made responsibly.

Understanding Risk-Based Pricing and LTV Considerations

As with most Non QM Loans, pricing on ITIN products is based on a variety of risk factors. These include credit score, LTV (loan-to-value ratio), documentation type, and occupancy. Higher LTVs—up to a maximum of 90%—are available for owner-occupied properties with full documentation and strong borrower profiles. Lower LTVs are required for second homes or borrowers using alternative income verification.

The program is designed to reward responsible financial behavior, even if traditional credit metrics are lacking. This means borrowers who have a solid payment history, adequate reserves, and verifiable income can access competitive terms, despite lacking a Social Security number.

Why New Hampshire’s Housing Market Is Ideal for ITIN Loans

New Hampshire offers an attractive blend of affordability, economic growth, and quality of life. For immigrant families, this means access to stable neighborhoods, quality education, and employment opportunities without the prohibitive costs seen in other New England states. Cities like Concord and Dover provide a mix of urban amenities and suburban stability, perfect for first-time homebuyers.

Moreover, the state’s housing inventory includes a healthy share of two- to four-family homes, allowing buyers to generate rental income that supports the mortgage. This type of setup is especially appealing for ITIN borrowers seeking long-term investment in their community.

Promoting Financial Inclusion Through Specialized Lending

One of the central goals of NQM Funding’s ITIN program is to promote financial inclusion. By creating lending pathways for borrowers who might otherwise be left out, the program helps close the wealth gap and encourages broader participation in homeownership. This doesn’t just benefit borrowers—it also strengthens the entire housing ecosystem.

Loan officers and brokers who embrace ITIN lending are often seen as community advocates, helping families navigate complex systems with empathy and expertise. In a state like New Hampshire, where the population is aging and new residents are needed to maintain economic growth, welcoming immigrant homeowners is both a moral and practical imperative.

Educating Borrowers and Building Trust

Trust is everything when working with ITIN borrowers. Many potential applicants have been turned away or discouraged by banks that do not understand their unique needs. Loan officers should approach each application with sensitivity and a willingness to educate.

Providing bilingual resources, clear timelines, and transparency around interest rates and fees can go a long way in building long-term relationships. At NQM Funding, we support brokers with the tools and materials they need to communicate effectively and maintain borrower trust throughout the loan lifecycle.

Preparing for the Future of Non QM Lending in New England

As the mortgage industry evolves, the importance of Non QM Loans continues to grow. Economic shifts, changing workforce dynamics, and increasing diversity are all pushing lenders to innovate. ITIN loans are just one piece of the broader puzzle—but they are a crucial one.

By helping borrowers in New Hampshire achieve homeownership, we contribute to a stronger, more resilient housing market. Whether you’re a broker seeking to grow your business or a loan officer ready to make a difference, the time to act is now.

Visit nqmf.com to learn more about our full suite of products and how you can get started with ITIN loans today.