Credit Score Requirements

Minimum credit score: 640across all Non-QM programs.
Maximum LTV access:– 720+: Best pricing, 85% LTV at all qualifying loan amounts
– 700–719: Near-best pricing, 85% LTV
– 680–699: Standard pricing, 85% LTV (some loan amount tiers may have lower caps)
– 660–679: 80% LTV on primary residence; standard on lower loan amounts
– 640–659: 75–80% LTV depending on program and loan amount

Note:For DSCR no-ratio program (DSCR 0.75–0.99): minimum 700 credit required.

Down Payment Requirements

Primary residence:15% minimum (80% LTV on most programs), or 20% at the standard LTV tier for all programs.
Investment property (DSCR):20% minimum (80% LTV standard). 30% for no-ratio (70% LTV).
No mortgage insuranceat any LTV on any program. No PMI, no MIP — ever.

Income Documentation Requirements by Program

Bank statement loan:12 or 24 months of personal or business bank statements. 2-year self-employment history required. No tax return.

DSCR loan:Current signed lease or appraiser market rent analysis. No personal income documentation of any kind.

1099 loan:12 or 24 months of 1099-NEC or 1099-MISC forms. 2-year independent contractor history. No tax return.

Asset utilization loan:2–3 months of statements for all eligible liquid asset accounts. No income documentation. No tax return.

DTI Requirements

All programs except DSCR:Maximum 50% DTI. Under specific conditions (primary residence, 660+ credit, 80% max LTV, $3,500+ residual income, 6+ months reserves, not first-time buyer): up to 55% DTI available.

DSCR:No DTI calculation. The investor’s personal debt obligations do not factor into DSCR qualification.

Reserve Requirements

Post-close liquid reserves — separate from down payment and closing costs:

Reserves must be liquid: checking, savings, brokerage accounts. Retirement accounts at 70% of vested balance.

Loan Amount Requirements

Minimum:$150,000 across all programs.
Maximum:$4,000,000 across all programs.
State overlays(FL, IL, NJ, CT, NY): maximum $2,000,000 for primary residence.

Self-Employment / Independent Contractor History

Bank statement and 1099 programs require 2 years of documented self-employment or independent contractor history. Verification: tax returns showing Schedule C, business license with 2-year history, client contracts, or CPA letter.

Loan Terms Available

30-year fixed, 40-year fixed, 5/6 ARM, 7/6 ARM, 10/6 ARM. Interest-only on ARM products with 660+ credit.

Property Types

Single-family residential, 2–4 unit residential, condominium (with project review), condotel (confirm), vacation/STR (DSCR at 75% LTV).

What Is NOT Required

No federal tax return on any program. No W-2 or pay stubs. No employer verification. No P&L statement (standard program). No mortgage insurance at any LTV.

FAQ

What credit score is needed for a Non-QM loan?

640 minimum across all programs. 660 for maximum LTV access.

What is the minimum down payment for a Non-QM loan?

15% for primary residence (85% LTV at qualifying credit). No PMI.

Are tax returns required for Non-QM loans?

No. None of Mbanc’s four programs require a federal tax return.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

State-Specific Overlays

Five states have Mbanc-specific primary residence program overlays:

Florida, Illinois, New Jersey, Connecticut, New York:Maximum primary residence loan amount: $2,000,000.
Maximum purchase LTV: 85%.
Maximum refinance LTV: 80%.
DSCR investment property in these states: national parameters (no $2M cap).

All other states: national parameters ($4M maximum, 85% purchase LTV).

Property Type Requirements by Program

| Property Type | Bank Statement | DSCR | 1099 | Asset Utilization |
|—|—|—|—|—|
| SFR primary | | N/A | | |
| SFR investment | | | | |
| 2-4 unit | | (combined rent) | | |
| Condo (primary) | | N/A | | |
| Condo (investment) | | (project review req’d) | | |
| STR | | (75% LTV) | | N/A |

The Two-Year History Requirement

Bank statement and 1099 programs require 2 years of documented self-employment or independent contractor history. This does not mean you must submit 2 years of tax returns — it means the loan file must establish that you’ve been operating independently for 2+ years. Business license with 2-year history, client contracts, or a CPA letter confirming duration all satisfy this requirement.

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Non-QM Loan Requirements Checklist

Before applying, confirm you meet every item:

Credit:Score of 640+ verified (660+ for best LTV access).
Income documentation ready:Bank statements (12–24 months), 1099 forms, asset account statements, or lease/rent analysis — depending on your program.
Down payment confirmed:15–30% of purchase price in verifiable liquid accounts.
Reserves confirmed:3–12 months of PITIA remaining in accounts AFTER down payment and closing costs are paid.
Self-employment history (bank statement/1099):2-year documentation ready — business license, contracts, or CPA letter.
Property address:Loan officer can confirm program availability by state and any applicable overlay.

Confirm all items above before identifying a specific property. The pre-qualification call (15 minutes, no documents required initially) confirms your specific program and maximum loan amount.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender | Not a commitment to lend.

The Non-QM Pre-Application Timeline

The sequence that produces the cleanest, fastest Non-QM close:

60+ days before application:Pull credit. If below 660: reduce revolving utilization immediately. Results visible in 30–45 days.
Engage CPA for expense letter if bank statement program applies. Provide the prior 24 months of business records.
For DSCR: identify target market, research county tax rates, start confirming rent comps.

30 days before application:Verify all bank statements are complete (all pages, all accounts, 24 months organized).
Confirm down payment and reserves are in verifiable accounts.
Pull 1099 forms from all payers (12–24 months).
Get actual insurance quote for target property (especially Florida/Texas).

Day 1 — Application submitted:Complete file including all income documentation, ID, and property info.
Appraisal ordered same day.

Days 5–15:Appraisal completed.
Processing review.

Days 18–28:Underwriting.
Clear to close.

Borrowers who arrive at application with complete documentation close in 21–28 days. Borrowers who are missing 3 months of bank statements and need a CPA letter add 2–3 weeks to the timeline.

Non-QM Second Home Financing

Second homes (vacation homes, seasonal residences, properties not used for rental income) are eligible for Non-QM primary residence-program financing: bank statement, 1099, and asset utilization. Maximum 85% LTV. Same documentation and DTI requirements as primary residence. State overlays apply (FL, IL, NJ, CT, NY: $2M max, 85% purchase LTV).

DSCR is not a second home program — DSCR is for investment properties that generate rental income. A vacation home occupied part-time personally but also rented may qualify as investment under DSCR with appraiser market rental income analysis.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Non-QM Qualifying Income Summary by Program

| Program | Income Calculation | Key Requirement |
|—|—|—|
| Bank statement | Monthly deposits × (1 – expense ratio) | 24 months deposits, 2-yr self-employment |
| DSCR | Qualifying rent ÷ PITIA = DSCR ratio | Lease or appraiser market rent |
| 1099 loan | Gross 1099 × 90% ÷ 12 | 12-24 months 1099-NEC/MISC forms |
| Asset utilization | Eligible assets ÷ 84 | 2-3 months account statements |

No tax return required on any program. Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Non-QM Eligible Property Types: Complete Guide

Single-family residence (SFR):The most common Non-QM property type. Primary residence, second home, and investment (DSCR or bank statement). Standard program parameters.

2-4 unit residential:All units combined for qualifying rent (DSCR). Bank statement for personal income qualification. Investment property: 2-unit at 75–80% LTV, 3-4 unit at 70–75%. Primary residence with owner-occupancy: not eligible for DSCR (investment use only).

Condominium:Eligible with mandatory condo project review (HOA financial health, owner-occupancy ratio, pending litigation, structural condition). HOA fee is part of PITIA. Florida: post-Surfside structural integrity reserve documentation required for 3+ story buildings over 30 years old.

Short-term rental (STR/vacation rental):DSCR at 75% LTV. Appraiser or STR analysis firm determines market income. 6–12 months reserves. Confirm STR permissibility at specific address before contract.

Condotel:Hotel-condo units (in hotel building with hotel services). Separate program parameters — typically 65–70% LTV. Confirm with loan officer.

Rural:Available with acreage limitations. Confirm specific address eligibility.

Commercial / 5+ units:Not eligible for residential Non-QM. Different program required.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Mbanc NMLS #38232 | Equal Housing Opportunity Lender