By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed 2027-01-20. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: Non-QM (non-qualified mortgage) loans are home loans that don’t fit the federal Qualified Mortgage definition, often because income is documented with bank statements, 1099s, or assets instead of tax returns, or because of features like interest-only. Lenders must still verify your ability to repay using reasonably reliable third-party records (12 CFR 1026.43).
Bank statement loans (12–24 months of deposits), 1099-only, asset-based or asset-depletion, interest-only, and recent credit events. For rentals, see DSCR.
Ability-to-repay rules require lenders to consider income or assets, employment, payment, debts, DTI or residual income, and credit history. Financial institution records are an accepted verification source.
Hyde Funding offers non-QM loans, including bank statement programs. Credit, LTV, statement-period and expense-factor guidelines vary by program and change often, so we quote current terms for your scenario.
Higher rates and larger down payments than agency loans, and many programs are lender-specific. Hyde Funding welcomes every credit profile. If your credit needs significant work, we can refer you to a trusted credit repair partner.
A mortgage that doesn’t meet the Qualified Mortgage definition, such as one using bank statements for income or with an interest-only feature, while still meeting ability-to-repay rules.
Yes. Lenders must still verify ability to repay under federal rules.
Self-employed borrowers, investors, borrowers with recent credit events, and those with assets but uneven income.
Talk to Steven: (858) 775-1005 · Free VA consultation · Apply now
Steven Hyde, NMLS #391380. Equal Housing Opportunity. Hyde Funding is not a government agency and is not affiliated with the VA. This is general information, not a loan commitment; terms depend on credit, income, property, and lender approval.