Not every homebuyer fits the standard mortgage mold — and that’s okay. In today’s evolving real estate market, flexible lending options are more important than ever. That’s where Non-QM loans come in.
As a leading mortgage broker in St. Petersburg, FL, The Orlicki Group helps homebuyers access specialized mortgage solutions — including Non-QM products designed for borrowers with unique financial situations.
If you’ve been turned down by a traditional mortgage lender or simply don’t fit inside the typical lending box, a Non-QM loan might be exactly what you need.
What is a Non-QM Loan?
Non-QM stands for Non-Qualified Mortgage. These are home loans that don’t meet the strict guidelines set by government-backed entities like Fannie Mae or Freddie Mac.
But that doesn’t mean they’re risky or untrustworthy — it simply means Non-QM loans are evaluated using more flexible criteria, making them a valuable tool for certain borrowers.
Who Can Benefit from a Non-QM Loan?
- Self-employed individuals or business owners
- Gig workers, freelancers, and independent contractors
- Real estate investors with multiple properties
- Retirees with assets but limited monthly income
- Borrowers with recent credit issues like bankruptcy or foreclosure
- Foreign nationals buying property in the U.S.
How Do Non-QM Loans Work?
Non-QM loans operate a little differently than traditional mortgage products — and that’s exactly what makes them so valuable for many St. Petersburg homebuyers. While conventional loans typically require strict documentation like W-2s, tax returns, and pay stubs, Non-QM loans offer more flexibility when it comes to verifying a borrower’s income and financial health.
Instead of relying solely on standard paperwork, Non-QM lenders take a more customized approach to evaluating your ability to repay the loan. This makes them ideal for buyers with complex financial situations or non-traditional income sources.
Common Documentation Used for Non-QM Loans:
Here are some of the alternative ways Non-QM lenders may verify your income and assets:
1. 12-24 Months of Bank Statements
Rather than tax returns, many Non-QM lenders will review your personal or business bank statements over the past 12 to 24 months. This allows them to see your actual cash flow, deposits, and spending habits — giving a more accurate picture of your financial situation if your reported taxable income doesn’t reflect your true earnings.
2. Asset Depletion Loans
If you have significant savings, investment accounts, or retirement funds, some Non-QM programs allow you to use those assets as a form of income. This is a popular option for retirees or high-net-worth individuals in St. Petersburg who may not have steady monthly paychecks but do have substantial financial reserves.
3. Rental Income from Investment Properties
Real estate investors in St. Petersburg can leverage projected or existing rental income from investment properties to help qualify for a Non-QM mortgage. This can be especially useful for buyers looking to expand their property portfolio or purchase short-term rental homes near St. Pete Beach or Downtown.
4. Profit and Loss Statements for Business Owners
Self-employed borrowers often struggle to qualify for conventional loans because of tax write-offs that lower their taxable income. With a Non-QM loan, lenders may accept a profit and loss (P&L) statement prepared by a CPA as proof of income, allowing business owners to qualify based on their true earnings.
This flexible, common-sense approach to lending allows a mortgage broker in St. Petersburg like The Orlicki Group to find creative mortgage solutions that work for borrowers with diverse financial situations.
Instead of a “one-size-fits-all” process, Non-QM loans are designed to meet you where you are — helping you achieve homeownership even if your income or credit history doesn’t fit traditional mortgage guidelines.
Key Benefits of Non-QM Loans
Non-QM loans offer several powerful advantages that make them an excellent option for many St. Petersburg homebuyers — especially those who don’t fit the narrow criteria of traditional mortgage products. Here’s a closer look at some of the most valuable benefits:
1. Flexible Income Verification
One of the biggest hurdles many buyers face — especially self-employed borrowers — is proving consistent income on paper. Traditional mortgages often require W-2s or several years of tax returns, which may not accurately reflect the income of business owners, freelancers, or gig workers.
With Non-QM loans, income verification is far more flexible. Borrowers can qualify using:
- 12-24 months of personal or business bank statements
- Profit and loss statements from a CPA
- Rental income from investment properties
- Asset depletion (using savings or investment accounts)
This opens the door for many St. Petersburg residents who run small businesses, work seasonally, or generate income from multiple streams.
2. Higher Debt-to-Income (DTI) Ratios
Conventional loans typically cap your DTI ratio around 43%, meaning your existing debts (like car loans, student loans, and credit cards) combined with your future mortgage payment can’t exceed 43% of your gross monthly income.
Non-QM loans often allow for higher DTI limits — sometimes up to 50% or more — giving buyers greater borrowing power. This can be especially helpful in St. Petersburg’s competitive real estate market, where home prices have steadily risen.
Higher DTI flexibility means buyers can afford homes they may not qualify for under standard lending rules.
3. Interest-Only Payment Options
Many Non-QM lenders offer interest-only loan options, which allow borrowers to make lower monthly payments (covering only the loan’s interest) for a set period, typically 5 to 10 years.
This is an attractive feature for:
- Real estate investors wanting to maximize cash flow
- Buyers expecting future income increases
- Those looking to keep initial housing costs low while investing or renovating
For St. Petersburg investors purchasing vacation rentals or properties in areas like Downtown or Beach Drive, interest-only loans can provide the flexibility needed to generate rental income before transitioning to full principal payments.
4. Credit Score Leniency
Traditional mortgages often require a minimum credit score of 620 or higher — and even then, rates and loan terms may be less favorable for borrowers with lower scores.
Non-QM loans, however, offer greater flexibility when it comes to credit history. Many Non-QM lenders work with borrowers who have:
- Credit scores below 620
- Recent bankruptcies or foreclosures
- Limited credit history
- Past financial hardships
This provides a fresh start for buyers rebuilding their credit or those who may not meet strict conventional lending requirements.
5. Tailored Loan Terms
Perhaps the greatest benefit of Non-QM loans is their customizability. These loans are designed to adapt to your unique financial story rather than forcing you to fit into a rigid mold.
Non-QM lenders can tailor loan terms based on:
- Down payment flexibility
- Loan amounts beyond conventional limits
- Interest-only periods
- Adjustable or fixed rates
- Alternative income documentation
This personalized approach gives buyers the ability to craft a mortgage solution that aligns with their homeownership goals — whether buying a primary residence in Historic Old Northeast or investing in rental properties near St. Pete Beach.
Why Non-QM Loans Are Popular in St. Petersburg, FL
St. Petersburg’s real estate market is booming — and not just for traditional buyers.
Many local residents are self-employed entrepreneurs, small business owners, seasonal workers, or real estate investors. In fact, according to recent data, Florida leads the nation in new business creation — meaning more buyers with non-traditional income streams.
With rising home values in areas like Downtown St. Pete, Old Northeast, and Kenwood, Non-QM loans provide competitive options for those looking to buy or invest in this vibrant Gulf Coast city.
Working with a Mortgage Broker vs. a Traditional Lender
One of the biggest advantages of working with a mortgage broker like The Orlicki Group is access to a wide network of Non-QM lenders.
Unlike a bank or direct mortgage lender, a broker shops multiple lenders on your behalf to find the best rates, terms, and loan structures for your specific needs.
This is especially important when exploring Non-QM loans because every lender has different guidelines and specialties.
The Orlicki Group: Your St. Petersburg Non-QM Loan Experts
At The Orlicki Group, we believe every buyer deserves a mortgage solution that works for them — not against them.
Here’s how we help:
- Personalized mortgage strategy
- Access to top Non-QM lenders
- Transparent process from start to finish
- Expert advice tailored to St. Petersburg’s housing market
Whether you’re buying a primary residence, second home, or investment property, we’ll help you explore all your options.
Is a Non-QM Loan Right for You?
If any of these apply to you, it’s worth reaching out to explore Non-QM mortgage solutions:
- Self-employed or business owner
- Inconsistent or seasonal income
- Real estate investor
- Credit challenges in the past
- Unique financial situation
Every buyer’s story is different — and your mortgage should reflect that.
Ready to Explore Your Mortgage Options?
Don’t let traditional lending guidelines limit your path to homeownership. With a Non-QM loan from The Orlicki Group, you can buy your dream home or invest in St. Petersburg real estate with confidence.
Contact Us Today!
Visit our website or Schedule Your Free Consultation with The Orlicki Group — your trusted mortgage broker in St. Petersburg, FL.
