NON-QM LOANS

NON-QM LOANS

At Third Coast Bank, we understand that not all borrowers fit the traditional lending mold. That’s why we offer a comprehensive suite of Non-QM (Non-Qualified Mortgage) products tailored for self-employed individuals, real estate investors, and borrowers with unique income or credit profiles.

DSCR – Debt Service Coverage Ratio Loans

Designed for new and seasoned real estate investors, DSCR loans allow qualification based on property cash flow rather than personal income. These business-purpose loans are exempt from ATR, QM, and HPML requirements.

 

Program Highlights:

  • Investment properties only

  • Close in LLC, partnership, or corporation (documentation required)

  • Max loan amount: $3,500,000

  • Max LTV: 80%

  • FICO as low as 620

  • Cash-out up to $1,000,000 (LTV ≤ 65%), otherwise up to $500,000

  • Mixed-use and multifamily (5–8 units); exceptions up to 12 units

  • 30 & 40-Year Fixed, 5/6 & 7/6 ARMs; interest-only options available

  • Eligible for U.S. Citizens, Non-Permanent Residents, Foreign Nationals, and ITIN borrowers

  • Minimum DSCR varies by program

  • Prepayment penalties available (6 months to 5 years)

  • Rental income calculated via DSCR using PITI(a)

  • Long-term lease, short-term rental, and unleased scenarios accepted

  • Gift funds and reserves (minimum 3 months) allowed

1099-Only Loan

Tailored for independent contractors and gig workers who receive 1099 income.

 

Program Highlights:

  • FICO: 620 or no score

  • Up to 85% CLTV

  • Loan amounts up to $4,000,000

  • DTI up to 55%

  • Purchase, Refinance, and Cash-Out available

  • 1-year 1099 history with same employer required

  • Expense ratio: 10%

  • Gift funds and temporary buydowns allowed

1 YR or 2 YR Profit & Loss (P&L) Loan

Empowers self-employed borrowers to qualify based on CPA-prepared P&L statements instead of traditional income documents.

 

Program Highlights:

  • Min FICO: 660

  • Up to 80% CLTV

  • Loan amounts up to $2.5 million

  • CPA/CTEC/Enrolled Agent P&L review required

  • Primary, Second Home, and Investment properties

  • DTI up to 55%

  • No bank statements needed up to 70% LTV

  • 25% income tolerance allowed

  • 1-year business history may be considered

  • Temporary buydowns available

Foreign National DSCR

A simplified investment loan for foreign nationals based on rental property cash flow, with no income verification required.

 

Program Highlights:

  • FICO: 660 or no score

  • Up to 75% CLTV

  • Loan amounts up to $3,000,000

  • Cash-out and RON (Remote Online Notarization) closings available

  • Minimum 12 months of reserves

  • Gift funds and foreign assets accepted

  • DSCR < 1 requires FICO ≥ 680 or no U.S. FICO

Asset Utilization Loan

For high-net-worth individuals who prefer to use personal assets to qualify in lieu of traditional income documentation.

 

Program Highlights:

  • Min FICO: 620

  • Up to 80% CLTV

  • Loan amounts up to $4,000,000

  • DTI up to 55%

  • Purchase, Refinance, and Cash-Out

  • Occupancy types: Primary, Second Home, Investment

  • Qualifying assets amortized over 60 months

  • 100% of checking, savings, stocks, bonds; 70% of retirement assets

  • Gift funds and minimum 3 months reserves required

  • 4 months asset seasoning required

ITIN Loan Program

Provides financing for borrowers with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number.

 

Program Highlights:

  • Min FICO: 660 (Super Prime) or 700 (DSCR)

  • Up to 70% CLTV

  • Loan amounts up to $1.5 million

  • Primary residence and investment allowed

  • DSCR and alternative documentation accepted

  • Minimum 3 months of reserves

  • Valid ITIN card or IRS letter and unexpired photo ID required