What is it? (plain English)
Alternative-documentation (often called non-QM) loans qualify borrowers using something other than standard W-2s and tax returns — such as bank-statement deposits, 1099 income, a profit-and-loss statement, or assets. They're for capable borrowers whose income doesn't fit a standard form.
Who is it for?
Self-employed borrowers, business owners, commission and 1099 earners, and asset-rich-but-income-light borrowers — for a primary home, second home, or investment property, depending on the program.
When might it make sense?
When your tax returns understate your true income, or your income arrives in a way standard underwriting wasn't built to read.
Good to know
These programs vary widely and often carry different terms — frequently higher rates and larger down-payment expectations than a standard loan — in exchange for flexible qualifying. The documentation you provide (and how clean it is) drives everything.
Potential advantages
Qualifies income that standard underwriting misses; flexible across borrower types; multiple documentation paths to fit how you actually earn.
Potential limitations
Often higher cost and larger down payment; terms vary significantly by program; more scrutiny of the documentation you do provide.
Documents you may need
Depends on the path — typically 12–24 months of bank statements, 1099s, a CPA-prepared P&L, or asset statements, plus identification and business documentation.
Questions to ask before you choose
- How is my income best documented — statements, 1099s, P&L, or assets?
- How long have I been self-employed?
- Would a standard loan actually serve me better?
- What down payment should I expect?
How Kyon helps
We match the documentation path to how you actually earn, tell you honestly if a standard loan fits better, and connect you with the right licensed channel.
Kyon Capital LLC provides real estate financing. Mortgage financing described here is originated by a separately licensed mortgage loan originator through a licensed lending relationship. Products, availability, rates, and terms depend on eligibility, are determined by the lender, and are subject to underwriting, appraisal, valuation, title, insurance, documentation, and program guidelines. Not all applicants will qualify. This is not a commitment to lend.