Question 1

What is a Non-QM loan?

Accepted Answer

A Non-Qualified Mortgage (Non-QM) is any loan that doesn't meet the Consumer Financial Protection Bureau's 'Qualified Mortgage' standards — primarily around income documentation. Non-QM loans are not inherently risky; they simply use alternative methods to verify a borrower's ability to repay.

Question 2

How does bank statement qualification work?

Accepted Answer

Instead of tax returns, we average your deposits over 12 or 24 months of personal or business bank statements to calculate your qualifying income. Business owners who write off significant expenses often show much higher income this way than on their tax returns.

Question 3

What is asset depletion?

Accepted Answer

Asset depletion (or asset dissipation) allows borrowers with significant liquid assets to qualify using those assets as 'income.' We divide your eligible assets by the loan term to calculate a monthly income figure. This is ideal for retirees or high-net-worth borrowers with limited documented income.

Question 4

Can I qualify after a bankruptcy or foreclosure?

Accepted Answer

Yes. Many Non-QM programs allow borrowers to qualify as soon as 1–2 years after a bankruptcy discharge or foreclosure, compared to 4–7 years for conventional loans. The waiting period and terms depend on the specific program.

Question 5

Are Non-QM rates higher than conventional rates?

Accepted Answer

Typically yes — Non-QM rates are 0.5–2% higher than conventional rates to compensate for the additional flexibility. However, for self-employed borrowers who can't qualify conventionally at all, Non-QM is often the only path to homeownership.

Question 6

Who uses Non-QM loans in Palm Beach County?

Accepted Answer

Palm Beach County has a high concentration of self-employed professionals, business owners, and high-net-worth individuals who benefit from Non-QM programs. Common borrower profiles we see in Jupiter, Palm Beach Gardens, and Boca Raton include: restaurant and hospitality business owners whose tax returns show heavy write-offs; healthcare professionals (physicians, dentists, specialists) with 1099 income or new practice ownership; real estate investors who own multiple LLCs; retirees with substantial liquid assets but limited W-2 income; and foreign nationals purchasing second homes or investment properties in Palm Beach County.

Question 7

Can a self-employed borrower in Jupiter, FL qualify for a jumbo Non-QM loan?

Accepted Answer

Yes. Non-QM programs are available up to $3M+ in Palm Beach County, making them well-suited for Jupiter's luxury market. A self-employed borrower purchasing a $1.2M home in Jonathan's Landing or Admirals Cove who shows $150,000 on their tax return but deposits $350,000/year into their business account can qualify using 24 months of bank statements — with the bank statement income used in place of the tax return figure. We work with multiple Non-QM lenders who specialize in high-balance bank statement loans in Florida.

Question 8

How does asset depletion work for retirees buying in Palm Beach County?

Accepted Answer

Asset depletion (also called asset dissipation) is a Non-QM qualification method that converts liquid assets into a monthly income figure. The formula: eligible assets ÷ loan term in months = monthly qualifying income. Example: a retiree in Boca Raton has $2,000,000 in a brokerage account and wants a $800,000 mortgage (360-month term). $2,000,000 ÷ 360 = $5,556/month in qualifying income — enough to support the mortgage payment without any W-2 or Social Security income. Eligible assets typically include checking, savings, brokerage accounts, and retirement accounts (with a haircut). This program is especially popular in Palm Beach County's retirement and second-home communities.

Question 9

What is a P&L loan and who qualifies in Palm Beach County?

Accepted Answer

A P&L (Profit & Loss) loan allows self-employed borrowers to qualify using a CPA-prepared profit and loss statement instead of tax returns or bank statements. The P&L covers the most recent 12 or 24 months and must be prepared and signed by a licensed CPA. This program is popular with business owners in Palm Beach County whose bank statements are complex (multiple accounts, intercompany transfers) but whose business profitability is clearly documented. Loan amounts up to $3M are available, making it viable for Palm Beach Gardens and Boca Raton purchases.

Question 10

How long after a bankruptcy or foreclosure can I get a Non-QM loan in Florida?

Accepted Answer

Non-QM programs in Florida allow borrowers to qualify as soon as 1 day out of bankruptcy (Chapter 7 or 13 discharge) or 1 day after a foreclosure, short sale, or deed-in-lieu — depending on the program and down payment. Standard Non-QM programs typically require 1–2 years of seasoning. The trade-off is a higher rate and larger down payment requirement immediately post-event, with terms improving as the event ages. If you experienced a credit event during the 2020–2022 period and have rebuilt your financial profile, you may qualify for better terms than you expect. We review your full credit history to find the best available program.

Non-QM / Bank Statement Loans

Key Features & Benefits

Best For

May Not Be Ideal If

Your Path to Closing

Income Analysis

Program Selection

Underwriting

Close on Your Terms

Frequently Asked Questions

Non-QM Loans in Jupiter & Palm Beach County, FL

Bank Statement

Asset Depletion

P&L Statement

1-Year Tax Return

Who Uses Non-QM in Palm Beach County

Also Consider

Don't Let Tax Write-Offs Cost You a Home

Non-QM and Bank Statement Loans