A Non-QM program for high-balance loan amounts above the 2026 conforming limit ($832,750). Combines flexible income documentation — bank statement, asset depletion, 1099, or P&L only — with jumbo loan amounts up to $5M. Built for sophisticated borrowers buying premium Texas homes (Tanglewood, Memorial, Westlake, Highland Park, River Oaks) whose income story is real but doesn't fit agency jumbo guidelines.
Jumbo Non-QM is a lending category — not a single product — that combines two things: (1) loan amounts above the FHFA conforming cap ($832,750 in 2026), and (2) Non-QM documentation methods (bank statement, asset depletion, 1099, or P&L only). It exists because agency jumbo lenders (Fannie/Freddie high-balance, A-paper banks) require full tax returns and W-2s, while many high-net-worth borrowers either don't have those documents or have tax returns that understate their actual income.
The typical Jumbo Non-QM borrower is a successful business owner, real estate investor, professional services partner, or high-earning contractor buying a premium Texas home — Tanglewood, Memorial Park, River Oaks, West University, Highland Park, Westlake, Lakewood, Preston Hollow — at the $900K–$3M price point. They have the income, the assets, and the credit. What they don't have is a tax return that matches the home they want to buy.
Because the loan amount is large and the documentation is alternative, lenders price for the combined risk: 720+ credit minimum, 12–24 months of liquid reserves post-close, larger down payments (15–25%+), and rates roughly 1.25%–1.75% above conforming. The product is built for borrowers who can absorb that pricing because the alternative — agency jumbo with tax returns — either disqualifies them or yields a smaller qualifying loan.
Borrower with $650K annual gross revenue in a self-employed business but tax returns showing $185K after deductions. Agency jumbo qualifies them on $185K → max loan ~$700K. Jumbo Non-QM bank statement at 50% deposit count qualifies them on ~$325K → max loan ~$1.2M. Same borrower, same property, 70% more loan — at a 1.5% rate premium that the borrower happily pays.
| Tier | Credit | Loan Range | Max LTV — Purchase | Max LTV — Cash-Out | Typical Rate |
|---|---|---|---|---|---|
| Premium | 760+ | $833K – $1.5M | 85% | 75% | 8.250% |
| Standard | 740–759 | $833K – $1.5M | 80% | 70% | 8.500% |
| Standard | 720–739 | $833K – $1.5M | 75% | 65% | 8.750% |
| Premium | 760+ | $1.5M – $3M | 75% | 65% | 8.500% |
| Standard | 720+ | $1.5M – $3M | 70% | 60% | 8.875% |
| Premium | 760+ | $3M – $5M | 70% | 55% | 8.875% |
| Doc Method | Income Period | Expense / Discount | Best For |
|---|---|---|---|
| Bank Statement (Personal) | 12 or 24 mo | 50% default · 30% w/CPA | Business deposits to personal acct |
| Bank Statement (Business) | 12 or 24 mo | 50% default · custom w/CPA | True business operating account |
| 1099 Income | 12 or 24 mo | 10–20% expense factor | Real estate agent, advisor, IT consultant |
| Asset Depletion | Snapshot | Liquid assets ÷ 60–84 mo | HNW retiree, low W-2 high asset |
| P&L Only (CPA) | 12–24 mo | Per CPA-prepared P&L | Strong CPA · clean books |
| Hybrid (W-2 + Alt) | Varies | Combined qualifying | Mixed income borrowers |
April 2026 illustrative rates. Contact Ethan for current pricing.
760 credit · $450K annual W-2 + $280K K-1 distributions
780 credit · $3.2M liquid · No employment income
740 credit · medical practice · TX 50(a)(6) cash-out
730 credit · $420K avg 1099 income · purchase
770 credit · multiple income sources · low LTV
W-2 employee · clean returns · agency wins easily
Through NEXA Mortgage's wholesale channel, multiple specialty lenders compete for jumbo Non-QM business. Pricing varies by tier, doc type, LTV, and reserves. Ethan will shop your file across the panel and present 2–3 best offers.
Ethan submits your scenario once and lets multiple wholesale lenders compete — you don't reapply at each one. The winning lender pays NEXA a wholesale fee out of their margin, so you typically get retail-or-better pricing without paying broker fees out-of-pocket. For jumbo Non-QM specifically, the rate spread between lenders on the same file can be 0.50%+ — worth shopping every time.
| Feature | Conventional / Conforming | Agency Jumbo | Jumbo Non-QM |
|---|---|---|---|
| Loan Amount | Up to $832,750 | $832,751 – $3M typical | $832,751 – $5M |
| Income Docs | W-2 + tax returns | W-2 + 2-yr tax returns | Bank stmt / Asset / 1099 / P&L |
| Tax Returns Required | Required | Required | NOT required |
| Min Credit | 620 | 700–720 | 720 |
| Max LTV | 97% (some products) | 80% common | 85% ≤$1.5M · 75% >$1.5M |
| Reserves | 0–6 months | 6–12 months | 12–24 months |
| Avg Rate (Apr 2026) | ~6.875% | ~7.125% | ~8.500% |
| DTI Max | 45–50% | 43% | 43–50% w/ comp factors |
| Close Time | 21–35 days | 30–45 days | 21–35 days |
| PMI / MI | If LTV >80% | None | None |
| Best For | Standard borrowers | W-2 high earners | Self-employed / HNW alt-doc |
Start with the question: "Do your tax returns support the loan you want?" If yes — agency jumbo wins on rate. If no — Jumbo Non-QM. The 1.375%+ rate premium on Non-QM is real, but it's the cost of qualifying on actual income vs deducted income. Run the numbers both ways before committing — sometimes the better strategy is to wait, amend returns, and refi into agency jumbo at year 2.
Jumbo Non-QM concentrations track the wealthy submarkets of Texas's four major metros. Median home values in these zip codes routinely sit above the $832,750 conforming line, and a large share of buyers are self-employed business owners, doctors, lawyers, real estate professionals, and oil/gas executives whose tax returns don't reflect their true cash flow.
Above $832,750 = jumbo territory. Above $1.5M = ultra-jumbo with stricter overlays. In these specific Texas zip codes, the typical buyer profile leans heavily self-employed, equity-rich, and high-asset — exactly the borrower whom Jumbo Non-QM was built to serve. Property tax rates also matter: Houston metro is generally 2.0–2.7%, Austin metro 1.8–2.3%, DFW 1.9–2.6%, San Antonio 2.0–2.5%. On a $1.5M home, that's $30K–$40K/year in tax — fully embedded in the DTI calculation. Plan accordingly.
Jumbo Non-QM can close as fast as 21 days with a clean borrower and engaged buyer. Add 1–2 weeks for ultra-jumbo files (>$1.5M) requiring two appraisals, complex doc packages, or international wires. For purchases, build in 35 days of contract time to leave room for inevitable surprises (HOA delays, condo questionnaire turnaround, appraisal disputes).
Borrowers focus on the down payment and forget reserves are equal in importance. On a $1.5M loan with $11,000/month PITIA, 12 months reserves = $132,000 in liquid post-close, in addition to the down payment. Plan reserves BEFORE making an offer — don't get to underwriting and discover you're short.
Bank statement default expense factor is 50%. If you're a real estate agent with $400K in 1099 income and you go bank statement, you qualify on $200K. The same income on 1099 doc method qualifies at $340K (15% expense factor). Doc method selection drives qualifying income — get it right at scenario stage.
Any deposit above ~$10K outside of normal business revenue gets a letter of explanation request. If you can't document the source, that money may be excluded from reserves. Six months before applying: stop random transfers from spouse / family / business accounts. Source everything.
Even though tax returns aren't required for qualification, many lenders ask for them as a sanity check. If your tax returns show $80K and your bank statements imply $480K, expect questions. Have a clean story — gross revenue from business, draws, retained earnings, etc. — ready to explain.
For loans over $1.5M, most lenders require two independent appraisals at borrower expense. Plan $1,200–$2,500 in appraisal fees alone. If the two come in materially different, lender will use the lower of the two — protecting their downside, costing your LTV.
Jumbo Non-QM rate locks typically run 30–45 days. Texas underwriting (especially with HOA / condo files) can creep to 35–40 days. If you lock 30 days at offer and underwriting drags, you may need an expensive extension (0.125–0.25% rate hit) or relock at current market. Lock 45 days unless you're certain.
Free Jumbo Non-QM scenario analysis. Ethan personally shops your file across the NEXA wholesale panel — Carrington, Angel Oak, Acra, Verus, Lendsure, Newrez — and presents the strongest 2–3 offers. No application required to get started.
