Non-QM Loans • Home Loans
By Mark Cohen | Cohen Financial Group | Updated August 2026
Are stated income mortgage loans still available in 2026? Not in the same form they were once offered.
iDirect Answer
Traditional stated income loans are no longer the mainstream mortgage product they once were. Today, borrowers with non-traditional income may consider non-QM programs that use alternative documentation.
Traditional stated-income loans relied heavily on a borrower’s reported income with limited conventional documentation. Today, borrowers with non-traditional income may have other options through the non-QM market, including programs that use bank statements or other financial information to assess income and repayment ability.
This article covers what alternatives are available, whether you may qualify, and what to consider before applying.
How Stated Income Lending Has Changed
Traditional stated income loans allowed borrowers to report their income with less conventional documentation than most mortgages require today. That approach changed significantly after the 2008 financial crisis, as regulators and lenders placed greater emphasis on verifying a borrower’s ability to repay.
Before the Financial Crisis
Stated income loans relied heavily on the borrower’s reported income, with less documentation than conventional mortgages typically required.
After the Financial Crisis
Mortgage underwriting placed greater emphasis on documenting income, assets, debts, and other factors that indicate a borrower’s ability to repay.
Today
A non-QM mortgage can provide an alternative for borrowers whose income is difficult to document using conventional mortgage requirements. These loans may use different methods to evaluate income, assets, and repayment capacity rather than simply accepting an income figure from the borrower.
The key difference is that modern alternative-documentation programs still evaluate a borrower’s finances; they may use different documentation to do so.
What Can You Use Instead of a Stated Income Loan?
If your income is difficult to document through a conventional mortgage, today’s non-QM market offers several ways to document income or demonstrate your ability to repay. The right option depends on how you earn your income, what assets you have, and the property you want to finance.
Bank Statement Mortgages
A bank statement mortgage uses eligible deposits from personal or business accounts to help calculate qualifying income. This can be useful for self-employed borrowers whose tax returns show less income because of business deductions. Bank statement loans generally qualify as non-QM products, not conventional mortgages.
Asset-Based or Asset Depletion Programs
These programs can use qualifying savings and investments to help establish income. They may be useful for borrowers who have substantial assets but limited traditional employment income. Instead of relying on employment income alone, the lender uses eligible assets to calculate an amount that can count toward qualifying income.
1099-Based Programs
Some non-QM loans are designed for borrowers who receive most of their income through 1099s, including independent contractors and other self-employed workers. The lender may evaluate this income differently from traditional W-2 earnings.
Profit-and-Loss Programs
Some lenders may accept a business profit-and-loss statement as part of the income documentation for qualifying borrowers. This can help business owners whose current financial performance is not fully reflected in older tax returns.
DSCR Loans (Investment Properties)
These loans take a different approach by focusing on whether the property’s expected rental income can support its debt obligations, instead of relying primarily on the borrower’s personal income.
These programs are not simply the old stated-income loans under a new name. Lenders still evaluate a borrower’s ability to repay, but they may use different financial records or, for investment properties, the property’s cash flow to make that determination.
Who May Qualify for These Programs?
Not every borrower with non-traditional income needs a non-QM loan. For a self-employed mortgage California borrower, alternative-documentation programs may be worth exploring when conventional income calculations do not fully reflect the borrower’s financial situation.
Lenders may consider borrowers such as:
Self-Employed Owners & Entrepreneurs
Particularly those with variable income or significant business deductions.
Commission-Based Earners
Borrowers whose income changes from month to month.
Real Estate Investors
Especially when income comes from multiple properties or other sources.
Borrowers With Substantial Assets
Significant savings or investments but limited traditional employment income.
Regardless of income type, lenders may still review:
■Credit history
■Down payment and available equity
■Liquid reserves
■Property type and occupancy
■Documented cash flow or qualifying assets
■Overall ability to repay
Being self-employed does not automatically mean you need a non-QM mortgage. Some self-employed borrowers qualify for conventional financing, while others may benefit from alternative documentation that better reflects their financial position.
What Can You Expect From Non-QM Mortgage Rates?
Non-QM loans typically have higher interest rates than conventional mortgages, although the difference varies by borrower, property, and loan program. The factors that can affect bank statement mortgage rates include:
Credit Profile
Stronger credit may lead to more favorable pricing.
Loan-to-Value Ratio
A larger down payment can reduce the lender’s exposure and affect the rate given to you.
Loan Amount
Pricing may vary depending on the size of the mortgage.
Property Type
Primary residences, second homes, and investment properties may have different pricing.
Documentation Method
Bank statement, asset-based, and other non-QM programs can carry different rates and terms.
Reserves & Risk Profile
Available liquid assets and the borrower’s financial position may also affect pricing.
Interest rates alone do not tell the full story. Borrowers should consider the full cost of the loan, including fees, down payment requirements, repayment terms, and total borrowing costs.
How Cohen Financial Group Approaches Non-Traditional Financing
For borrowers seeking a non-QM loan in Los Angeles, Cohen Financial Group evaluates the borrower’s financial picture, property, and goals instead of defaulting to a single loan product.
#1
Mortgage Broker & Non-QM Originator in the U.S.
$18B+
In Career Loan Volume
31,200+
Loans Funded
11 Yrs
Averaging $1B+ Annually
Mark Cohen was named the #1 Mortgage Broker in the U.S. and #1 Non-QM Originator in the 2026 Scotsman Guide rankings.
■Broad lending network: works with a strategic network of lending partners to structure financing for residential and commercial properties throughout Greater Los Angeles.
■Complex financing: works with borrowers ranging from first-time buyers to those financing luxury properties and more complex transactions.
■Relationship-driven approach: based in Beverly Hills, with more than 38 years of industry experience serving borrowers throughout Greater Los Angeles.
The goal is to identify the financing structure and documentation approach that best fits the borrower’s circumstances, not to assume a conventional mortgage is the only option.
Frequently Asked Questions
Are stated income mortgages still available in 2026?
Traditional stated-income loans are no longer the mainstream mortgage product they once were. Today, borrowers with non-traditional income may consider non-QM programs that use alternative documentation to evaluate their ability to repay.
Can self-employed borrowers get a mortgage without using tax returns?
Yes, some programs may use bank statements or other financial records instead of relying solely on tax returns. Requirements vary by lender and program.
Are bank statement loans considered non-QM mortgages?
Generally, yes. Bank statement loans are typically non-QM programs that use eligible bank deposits to help document qualifying income.
Do non-QM loans have higher interest rates?
They typically have higher rates than conventional mortgages, although pricing varies based on the borrower, property, loan structure, and documentation method.
Can I qualify for a non-QM mortgage if I don’t qualify for a conventional loan?
Potentially. Non-QM programs may offer another qualification path, but approval still depends on the specific program, the borrower’s financial profile, and the lender’s underwriting requirements.
Get Pre-Approved Today
Before assuming you don’t qualify, have your income, assets, and financing goals reviewed by a mortgage advisor. Cohen Financial Group can help you evaluate conventional and alternative-documentation options and identify a financing strategy suited to your financial situation.
Cohen Financial Group, Inc. | NMLS #1593077 | Mark H. Cohen, NMLS #37230 | Licensed Mortgage Broker, Beverly Hills, CA. This content is for informational purposes only and does not constitute a commitment to lend. Program terms, rates, and guidelines are subject to change. Contact Cohen Financial Group for current qualification parameters.