An unconventional mortgage is any home loan that doesn’t follow traditional banking guidelines like those used by Fannie Mae or Freddie Mac. These loans offer flexible options for self-employed borrowers, real estate investors, or anyone whose income or situation doesn’t fit the “normal” mold.

Yes—unconventional loans are real, licensed mortgage programs offered by approved lenders. While they may not be underwritten by big banks, they are fully compliant and often tailored to borrowers who need more flexibility.

If you've been turned down by a bank due to your income type, credit profile, or property goals, an unconventional loan may be a better fit. Common candidates include self-employed professionals, investors, retirees, foreign nationals, and borrowers recovering from credit events.

They allow for flexible income documentation (like bank statements or P&L statements), often require less red tape, and can help you qualify when traditional lenders say no. They're especially popular for fast closings, complex income, or unique properties.

They may come with slightly higher rates or require larger down payments compared to conventional loans. However, they offer access to financing that wouldn't otherwise be available—and that can outweigh the cost for many borrowers.

No. While both are non-traditional, hard money loans are typically short-term, high-interest financing from private investors. Unconventional loans are structured long-term mortgage products underwritten by licensed lenders.

Not at all. Many borrowers have great credit but need flexibility in how they document income or qualify. Unconventional loans are more about creative structuring than poor credit.

Yes! Self-employed borrowers often qualify using alternative documentation methods like bank statements or a CPA-prepared profit and loss statement. Lenders focus on cash flow, consistency, and your ability to repay—even if your tax returns show write-offs.

A 1099 mortgage is designed for independent contractors or gig workers who receive IRS Form 1099 instead of a W-2. These loans typically don’t require full tax returns and instead rely on your 1099 income, bank deposits, or P&L statements.

In most cases, yes. However, if you’ve been self-employed for at least one year and have a prior history in the same field, some unconventional lenders like us may accept you with strong documentation.

That’s where unconventional loans shine. If you write off a lot of expenses, you may still qualify using bank statement loans, P&L loans, or asset-based financing that looks at deposits or net income instead of tax returns.

A bank statement loan uses 12–24 months of personal or business bank statements to calculate income, while a P&L loan uses a profit and loss statement prepared by a CPA or tax preparer. Both allow you to bypass traditional tax return requirements.

Yes. As long as your income is steady and verifiable through deposits, 1099s, or business statements, freelancers and part-time contractors can qualify for a mortgage under several flexible programs.

A bank statement loan is a mortgage that uses your personal or business bank statements—usually over 12 or 24 months—to verify income instead of tax returns. It’s a popular option for self-employed borrowers or business owners who have solid cash flow but write off a lot of expenses.

Lenders average your monthly deposits over a set time frame—usually 12 to 24 months—to calculate your qualifying income. They may apply an expense ratio if you use business statements or use 100% of income for personal accounts.

No. That’s the biggest advantage. These programs are designed specifically to avoid traditional income documentation, making them ideal for borrowers with strong deposits but low taxable income on paper.

Yes. Lenders typically allow either, but they’ll calculate income differently. Business accounts may require a set expense ratio (like 50%), while personal statements can often be used at 100% of deposit value.

Most lenders require 12 to 24 months of the most recent consecutive bank statements. 12 is more common, but 24 can demonstrate a longer track record of business performance. The longer the period, the smoother the income trend appears—and that can help with approvals.

Minimum scores vary by lender but typically range from 620–680. Strong credit helps with rates and loan terms, but it’s not the only factor. Your deposit history and loan-to-value ratio also matter.

A profit and loss (P&L) mortgage loan allows you to qualify for a mortgage using a CPA- or tax-preparer-generated profit and loss statement instead of traditional tax returns. It's a flexible option for self-employed borrowers whose taxable income doesn't reflect their actual cash flow.

Instead of asking for tax returns or bank statements, the lender uses your P&L statement to evaluate your monthly income. The statement should reflect income and expenses for your business over the past 12 or 24 months and typically needs to be prepared or signed by a licensed CPA.

Most lenders require the P&L to be signed and dated by a licensed CPA or tax preparer with a PTIN number. This gives the statement credibility and confirms that it’s accurate and in line with your actual business performance.

A P&L loan uses your income minus expenses (net income), while a bank statement loan calculates income based on deposits. P&L loans may work better for borrowers with high overhead or cash-heavy businesses, while bank statement loans are great for consistent depositors.

No. Most lenders require a P&L covering the most recent 12 full month period. The dates must be for this specific period.  P&L loans are not based on an IRS tax year basis. Some lenders may also require a 24 month P&L to compare trends and verify stability.

No—if you're using a qualified P&L loan program. These are designed to eliminate the need for tax returns, which often show reduced income due to write-offs and deductions common in self-employment.

Almost any legitimate business—LLCs, S-corps, sole proprietors, freelancers—can qualify, as long as you have a consistent income history and a credible P&L prepared by a licensed tax professional.  

The typical down payment for a P&L loan/ Profit and Loss statement loan is 20% of the purchase price.

A DSCR (Debt Service Coverage Ratio) loan is designed for real estate investors. Instead of using your personal income or tax returns, the lender qualifies you based on the cash flow of the rental property itself. If the property generates enough income to cover the loan payment, you're in business.

DSCR is calculated by dividing the property's monthly rental income by the monthly housing expenses (including principal, interest, taxes, insurance, and HOA fees if applicable). A ratio of 1.0 or higher typically means the property pays for itself.

A DSCR of 1.0 means the property breaks even. Most lenders prefer 1.1 to 1.25 or higher to offer the best rates, but some programs allow ratios below 1.0 with compensating factors like higher credit or larger down payments.

DSCR loans generally require a minimum down payment of 20–25%, depending on credit, location, loan amount, and type of property being financed. True “no down payment” options are rare but may be available through portfolio lenders or cross-collateralization strategies.

No. That’s what makes them powerful for investors. DSCR loans do not use W-2s, tax returns, or pay stubs. They’re strictly based on the income the property generates or is projected to generate.

In many cases, yes. Lenders often accept a rental survey or market rent appraisal for long-term rentals. Some DSCR programs also support short-term rentals like Airbnb and VRBO, using average income or historical bookings as part of the equation.

Yes and no.  DSCR loans are real mortgage loans and do report to credit bureaus if you close in your own name.  If the DSCR lender allows you to close in the name of your entity (LLC, Corporation, LLP, etc.), then they may not report the loan on your personal credit history.  Ask your lender their policy. Lenders focus on the property’s ability to repay—not your personal debt-to-income ratio—so having multiple properties is more manageable under this structure.

Yes. Many lenders offer special mortgage programs for non-U.S. citizens, foreign investors, and international buyers. You don’t need a green card, visa, or Social Security number to qualify—just a valid passport and some basic financial documentation.

It’s a home loan specifically designed for non-residents or non-citizens of the U.S. These loans allow foreign nationals to purchase or refinance property in the U.S. without needing traditional U.S. credit or income verification.

Requirements vary, but typically include: a valid passport, proof of foreign income or assets, a reference letter from a foreign bank, and a U.S. bank account for funds transfer. Some programs also require a U.S. tax ID (ITIN).

No. Most foreign national loans do not require U.S. credit history. Instead, lenders may request an international credit report or rely on your banking history and asset documentation.

Absolutely. Foreign buyers frequently use these loans to invest in rental property, vacation homes, or even multifamily real estate in the U.S. DSCR and no-income-verification programs are often available.

In many cases, yes. If you already own U.S. property outright or have built up equity, some lenders allow foreign national borrowers to access cash for reinvestment—even without U.S.-based income.

An asset-based mortgage (sometimes called asset depletion or asset-qualifier loan) allows you to qualify using your liquid financial assets—like cash, investment accounts, retirement funds, or annuities—instead of traditional income documents like pay stubs or tax returns.

These loans are ideal for retirees, high-net-worth individuals, or anyone living off of investments, dividends, pensions, or annuities. If your assets are strong but your monthly income is limited or unconventional, this loan structure offers a great solution.

Lenders typically “deplete” (divide) your assets over a set term (often 84 months - 360 months), dividing the total by that number to generate a qualifying monthly income. Some programs use a percentage of assets instead of the full amount to stay conservative in underwriting. Other programs use a comparison of your liquid assets and the new loan amount.

Eligible assets often include checking/savings balances, stocks, bonds, mutual funds, 401(k)s, IRAs, annuities, and some trusts. Real estate equity may not qualify unless liquidated. Funds usually must be seasoned for 60+ days.

Not necessarily. In most cases, no employment or income verification is required—just proof of assets. Some programs may ask for a letter of explanation or retirement income statement if you're partially drawing from assets.

Yes. If you’re over 59½, most lenders will use the full balance to calculate income. If you’re younger, they may discount the value or exclude it altogether unless you’re actively withdrawing funds.

Yes, but it depends on the stage of your divorce. In Florida, you can usually qualify to buy or refinance during or after a divorce—but timing, title, and financial agreements matter. We can help navigate scenarios like equity buyouts, refinancing out an ex, or purchasing a new home post-divorce.

You can't “remove” someone from an existing mortgage—you must refinance it in your name alone. This is common in Florida divorce settlements where one spouse keeps the home. We offer custom refinance options built specifically for these scenarios.

Not always. In many Florida counties, lenders can move forward as long as the divorce is filed and the property division is clear. In other cases, a finalized divorce decree may be required. It depends on the loan program, occupancy intent for the home being financed, and your personal financials.

If your name is on the mortgage and you’re walking away, you’ll still be financially responsible until your ex refinances. That’s why it's critical to include refinance requirements in your divorce settlement—and why it pays to talk to a lender early.

Maybe. Some unconventional loan programs allow you to exclude the current mortgage from your debt-to-income ratio—**if** you can show that your ex is responsible for the payment (usually with 12 months of payment history or a signed agreement). We can help assess your options.

In Florida, any property acquired before the final judgment may be considered marital property. That’s why it’s important to involve your attorney—and your lender—early. There are ways to protect your ownership and structure the transaction safely.