Non-QM Mortgage

A non-QM (non-Qualified Mortgage) is a home loan that does not conform to the Consumer Financial Protection Bureau's Ability-to-Repay / Qualified Mortgage rule requirements set out under the Dodd-Frank Act.

Why non-QM matters for Bitcoin holders

Standard conforming mortgages (those eligible for sale to Fannie Mae or Freddie Mac) require documented income — W-2s, tax returns, pay stubs. Bitcoin holders who have significant wealth in crypto but unconventional income sources often can't qualify under standard rules. Non-QM mortgages allow alternative documentation and underwriting.

Types of non-QM relevant to Bitcoin borrowers

- **Bank statement mortgages** — qualify using 12–24 months of bank statements instead of tax returns - **Asset depletion mortgages** — lender calculates a hypothetical monthly income from your Bitcoin holdings by dividing total value over a set term (e.g., 360 months) - **BTC-collateralized non-QM** — Bitcoin is pledged as collateral replacing a cash down payment; underwriting may require no income documentation at all

Non-QM vs. conforming vs. qualify-with-crypto

The key distinction: conforming mortgages sell to GSEs (Fannie Mae, Freddie Mac) and must follow standard rules. Non-QM mortgages are typically held on the lender's balance sheet or sold to private investors. Qualify-with-crypto programs count Bitcoin toward standard income/asset qualification without pledging it — these can be either conforming or non-QM depending on how Bitcoin is treated.