Non-QM Underwriter Questions 2026: What to Expect and How to Answer Them

Non-QM underwriting is manual underwriting. Every decision is human. That means the underwriter will call or message with specific questions before issuing a clear to close, and the quality of your answers determines how quickly the file moves. MLOs who understand what non-QM UWs look for can front-load that documentation and cut condition cycles in half.

Income Documentation Questions

• ✦Bank statement loans: UW will verify the deposit pattern makes sense for the stated business type. Expect questions about large irregular deposits, transfers from business to personal, and whether the expense ratio used matches the business described.
• ✦P&L loans: UW will ask who prepared the P&L. A CPA-prepared P&L carries more weight than a borrower-prepared one. Be ready to explain year-over-year trends.
• ✦1099 loans: UW will compare the 1099 income to the 12 or 24-month average and flag gaps in service months. Explain client concentration risk if more than 50 percent of revenue comes from one source.

Asset and Reserve Questions

• ✦Non-QM reserve requirements are typically 6 to 12 months PITIA. UW will verify seasoning of those funds in bank or investment statements.
• ✦Large deposits require sourcing documentation just as in agency loans. Non-QM lenders do not waive this requirement.
• ✦Retirement accounts are typically discounted by 30 to 40 percent for reserves. Confirm the specific haircut with the lender before presenting the borrower's reserve picture.

Property and Occupancy Questions

• ✦Non-QM UWs scrutinize occupancy more carefully than agency AUS. Expect questions if the subject property is more than 50 miles from the borrower's employer or prior residence.
• ✦Investment property DSCR files require a 1007 rent schedule from the appraiser. UW will challenge low rent estimates if market data does not support them.
• ✦Condo projects must pass non-QM condo review. Many non-QM lenders use a simplified questionnaire but will still require HOA financial documentation for large projects.