Illinois Flex Select vs. Flex Supreme: Which Non-QM Loan Is Right for Your Borrower?

Why Illinois Borrowers Are Turning to Non QM Loans In today’s evolving housing market, Illinois borrowers are increasingly finding themselves outside the narrow approval window of conventional mortgage programs. Traditional lenders demand rigid documentation, high credit scores, and straightforward income verification that many modern borrowers simply can’t provide. This is particularly true in Chicago, where a diverse population of professionals, entrepreneurs, and investors create demand for alternative financing options.

Flex Select and Flex Supreme loans from NQM Funding have emerged as two popular solutions within the Non QM Loan space. Each offers specific benefits and documentation flexibilities that appeal to different borrower profiles—whether it’s a first-time buyer with DU findings or a seasoned investor using asset depletion.

Flex Select Overview: Designed for Speed and Simplicity Flex Select is ideal for borrowers who can produce complete income documentation and qualify using Desktop Underwriter (DU) findings. It’s built for efficiency and reduced underwriting friction. This program suits borrowers with stable W2 income or verifiable self-employed earnings, and it aligns closely with conventional loan parameters while still offering Non QM flexibility.

Flex Select is commonly used in Illinois metro areas where borrowers are looking to move quickly in competitive housing markets. With DU findings guiding the loan process, approvals are faster and conditions are more predictable. It’s particularly beneficial for W2 professionals in suburban markets like Naperville or Schaumburg who have clean credit and stable employment.

Flex Supreme Overview: Built for Flexibility and High Leverage For borrowers who require more creative solutions—especially those with complex income, higher loan amounts, or non-traditional documentation—Flex Supreme is often the better fit. This program is the most flexible option offered by NQM Funding. It allows for qualification via bank statements, P&L statements, 1099 income, or even asset depletion.

Flex Supreme is the product of choice for self-employed borrowers, high-net-worth individuals, and investors purchasing properties in luxury markets like Hinsdale, Evanston, or the Gold Coast. The higher allowable LTVs (up to 90% for purchases) and broader documentation options make it versatile for those who need options beyond agency loan limits.

Comparison Table: Flex Select vs. Flex Supreme Features

When to Recommend Flex Select to Illinois Borrowers Flex Select loans work best for borrowers who meet basic agency-style qualifications but don’t quite fit into conventional lending. These include W2 employees with minor credit issues or self-employed professionals who can document income via tax returns. For example, a teacher in Oak Park or a nurse in Aurora with DU findings and steady paychecks is an ideal Flex Select candidate.

This loan is also favored for fast closings in competitive suburbs, where buyers need an edge when submitting offers. DU findings provide a clear approval path, making the borrower’s file stronger in the eyes of sellers and agents.

When Flex Supreme is the Better Fit Flex Supreme should be considered when a borrower doesn’t meet DU guidelines or needs flexibility in how income is presented. A Chicago-based entrepreneur with fluctuating monthly revenue, or a Highland Park investor managing multiple properties through an LLC, may not have clean or consistent documentation. With Flex Supreme, they can qualify using business bank statements or CPA-prepared P&L statements.

This product is also suited for high-balance loans, jumbo scenarios, or purchases involving non-owner-occupied properties. Borrowers using asset depletion to qualify—especially retirees or individuals with high liquid net worth—will also find Flex Supreme far more accommodating.

Illinois Market Snapshot: Matching Borrowers to the Right Non QM Loan The Illinois housing market is varied, with dense urban investment opportunities and suburban family housing coexisting in close proximity. Chicago’s multi-family property market continues to attract investors who often need Non QM solutions due to rent-based cash flow, while suburbs like Downers Grove and Glen Ellyn are home to W2 buyers looking for fast processing.

Borrowers in Cook County may have strong income but face issues with tax write-offs, delayed closings, or multiple income sources. Brokers who understand the nuances of Flex Select and Flex Supreme can better serve clients based on their market segment and documentation profile.

Common Broker Questions About Flex Select vs. Flex Supreme Mortgage brokers often ask key questions when determining which product to use. For example, “Which loan closes faster?” The answer is typically Flex Select, since DU findings provide a roadmap for the underwriter and often reduce conditions. However, if speed isn’t as critical as flexibility, Flex Supreme remains a better choice.

Another question: “What’s required for bank statement or P&L income qualification?” For Flex Supreme, a 12- or 24-month history of business deposits and CPA-prepared profit and loss statements are commonly accepted. Borrowers must also demonstrate business ownership and stability. For asset depletion scenarios, bank and investment account statements with seasoning may be necessary.

And finally: “Can we switch between programs mid-process?” Yes, but timing is critical. If the borrower’s financials change, or if DU findings are not favorable, a broker may need to pivot to Flex Supreme. The ability to adjust mid-stream is one of the reasons brokers prefer working with a flexible Non QM Lender like NQM Funding.

Using the Quick Quote Tool to Identify the Right Program The Quick Quote Tool is an essential asset for Illinois brokers. It allows for rapid scenario evaluation using just a few inputs—credit score, income type, property type, and loan purpose. By previewing which loan product fits best, brokers can save time and set expectations for the borrower early in the process.

A broker working with a Glenview-based self-employed borrower might quickly discover that the income doesn’t support a Flex Select underwrite but does qualify under Flex Supreme using bank statements. This real-time insight helps avoid unnecessary declines and keeps pipeline flow steady.

Structuring Strong Submissions for Each Product Type For Flex Select files, brokers should prioritize clean DU findings, full tax documentation, and W2 or 1099 forms. A standard borrower file includes recent pay stubs, two years of tax returns, employer verification, and bank statements to show reserves. DU findings will often waive redundant conditions if the profile is strong.

Flex Supreme files require a more tailored approach. For example, self-employed borrowers should submit business licenses, CPA letters, or articles of incorporation. Bank statement borrowers must show deposit summaries and explain any inconsistent activity. Asset depletion files should clearly list account balances, access terms, and documentation of the borrower’s age and expected loan term.

Navigating Hybrid Borrowers: When One Program Doesn’t Fit Perfectly Illinois brokers frequently encounter hybrid income borrowers. One spouse may have a W2 job while the other receives 1099 income from consulting or rental activity. In such cases, determining whether Flex Select or Flex Supreme is better depends on how the combined income aligns with program thresholds.

NQM Funding’s flexible underwriting allows brokers to blend these scenarios. A borrower might qualify with DU for the primary wage earner and supplement with P&L from the secondary. This hybrid approach ensures borrowers don’t fall through the cracks due to rigid documentation standards.

Why Non QM Loan Brokers in Illinois Should Master Both Products Brokers who understand both Flex Select and Flex Supreme can dramatically increase their close rate. Instead of trying to make every borrower fit into a single underwriting model, they can match the client’s actual income and credit story to the product that makes the most sense.

This results in fewer loan fallouts, better customer satisfaction, and higher referrals. In a competitive Illinois lending environment, especially in metro regions like Chicago and surrounding suburbs, the ability to pivot between these two programs is a major advantage.

How NQM Funding Supports Flex Select and Flex Supreme Brokers NQM Funding provides product-specific resources, training sessions, and matrix breakdowns to help brokers succeed. Brokers can access one-on-one scenario support, which is especially useful when trying to determine whether DU findings or a bank statement submission is the better path.

Marketing resources are also available to help brokers promote both Flex Select and Flex Supreme to their client base and real estate referral partners. For Illinois-based brokers, this means more traction in urban, suburban, and even rural pockets where Non QM Loan borrowers are underserved by agency lenders.

Looking Ahead: The Role of Flex Products in Illinois’ Non QM Market As more Illinois borrowers turn to non-traditional income models—like contracting, consulting, and investment property management—Non QM Loan options will continue to grow in importance. Flex Select and Flex Supreme are powerful tools that allow brokers to serve a wide range of borrower needs.

Brokers who master these products will not only convert more leads but also build long-term relationships with clients who require specialized solutions as their financial lives evolve. Whether you’re financing a duplex in Logan Square or helping a business owner relocate to Naperville, knowing how to deploy the right Non QM loan product at the right time is key to success.