What conventional means here
On this site, conventional means a loan sold to Fannie Mae or Freddie Mac, or built to those rules. Income usually comes from W-2s, tax returns, and standard employment verification. Debt-to-income is a core test.
If you have steady W-2 income and tax returns that already support the payment, conventional is often the first door we knock on. There is no prize for using a more complicated program.
What non-QM means here
Non-QM means the loan is not trying to fit the Qualified Mortgage income box. Bank statement loans and DSCR loans are the two we feature. Both still require credit, assets, and a property the lender will accept.
Non-QM is not a nickname for bad credit, and it is not a promise that overlays disappear. Some non-QM lenders are picky in other ways (reserves, property type, or how they treat short-term rent).
A simple way to choose
If tax returns already show enough income, start conventional (or FHA/VA if those fit). If the business deposits tell a better story than the 1040, look at bank statement. If the property is a rental and you want the rent to carry the qualifying, look at DSCR.
You can pick “Not sure” on the form. We would rather match the file than force a label.
What we will not say
We will not say non-QM is “easier,” that conventional is “always cheaper,” or that everyone qualifies for either one. Cost and approval belong to the lender after underwriting — not to a blog comparison.
This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines and property eligibility. Programs and guidelines are subject to change without notice. Liberty Group Funding, Inc. is a mortgage broker and does not make loans directly.