Non-QM loans are a viable alternative to Conventional and Agency Loans

These loans will look at the deposit history in your bank account(s) over a period of time, usually 12-24 months, however some lenders will allow as little as 3 or 6 months too. These can be from either personal or business accounts.  Many lenders require no-comingling, but some do allow it.  Most lenders will not allow any other supplemental income types (e.g. W-2, Disability, Retirement, Asset Depletion, etc...) in conjunction with Bank Statement income, some, however, do. 

Once all the qualifying deposits are added up, an expense ratio is applied based on the type of business you operate. This will yield your monthly qualifying income that is used to calculate your Debt to Income ratio. The rest of the loan works much like any other conventional or agency product, but no pay stubs or tax returns are needed. Although, these are non-TRID regulated loans, many lenders choose to follow Fannie/Freddie guidelines closely. 

Bank Statement loans are a great option for self-employed borrowers.

These loans are typically for those on fixed incomes or are high NET Worth individuals. A variety of methods are used to determine the qualifying amount of assets you can use in the calculations of your assets, but the fundamental way they are applied is the same. A portion of your retirement, insurance policy’s cash value, stocks, bonds, money market accounts, cryptocurrency, etc… is weighted to a total that is divided over a certain number of month to an expected depletion rate. This also varies by lender. The lower the depletion rate, the higher the monthly income will be to use in the DTI calculation.

For example, a borrower has $1,000,000 in their retirement account. The lender allows up to 70% of that balance to be used; so $700,000. The depletion rate is 7 years, or 84 months. $700,000 / 84 Months = $8,333.34 in qualifying monthly income that is used to calculate the DTI for the loan. 

Pretty neat, huh?.  See Non-QM loans can help you.