Skip to main content
TQL TPO Partner Guide 2026

The Non-QM Playbook — TQL TPO Partner Guide 2026

Built for investor niches. Ready for every Non-QM deal.

Footprint · Pre-payment · Licensing · Why partners choose TQL. Built by originators. For originators.

States: Owner-Occ Non-QM + Non-QM Business Purpose
25
States: Non-QM Business Purpose / Investment only
21
Total active lending states
40+

Non-QM products only

TQL does not accept QM loans (Conventional/FHA/VA) through the TPO channel. In blue states you can submit Owner-Occupied Non-QM (Full Doc, Bank Statement, 1099, Asset Depletion) and Non-QM Business Purpose (DSCR & Hybrid Investment). In green states, Non-QM Business Purpose / Investment only.

No Conventional, FHA, or VA loans accepted through TPO. Non-QM products only.

Where we lend

Blue states = Owner-Occ Non-QM + Non-QM Business Purpose. Green states = Non-QM Business Purpose / Investment only. No QM (Conv/FHA/VA) accepted through TPO.

  • Owner-Occ Non-QM + Non-QM Business PurposeFull Doc · Bank Statement · 1099 · Asset Depletion · DSCR · Hybrid Invest.
  • Non-QM Business Purpose / Investment onlyDSCR & Hybrid Investment loans

Showing 46 of 46 states

  • Alabama

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Arizona

    Owner-Occ Non-QM + Non-QM BP

    Standard PPPCompany license

  • Arkansas

    Non-QM Business Purpose

    Standard PPP

  • California

    Owner-Occ Non-QM + Non-QM BP

    Standard PPPLO licenseCompany license

  • Colorado

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Connecticut

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • DC

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Delaware

    Non-QM Business Purpose

    Standard PPP

  • Florida

    Owner-Occ Non-QM + Non-QM BP

    Standard PPPLO licenseCompany license

  • Georgia

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Idaho

    Owner-Occ Non-QM + Non-QM BP

    Special PPPLO licenseCompany license

  • Illinois

    Owner-Occ Non-QM + Non-QM BP

    Special PPP

  • Indiana

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Iowa

    Non-QM Business Purpose

    Standard PPP

  • Kansas

    Non-QM Business Purpose

    Standard PPP

  • Kentucky

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Louisiana

    Non-QM Business Purpose

    Standard PPP

  • Maine

    Non-QM Business Purpose

    Special PPP

  • Maryland

    Non-QM Business Purpose

    Special PPP

  • Massachusetts

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Michigan

    Owner-Occ Non-QM + Non-QM BP

    Special PPP

  • Minnesota

    Owner-Occ Non-QM + Non-QM BP

    Special PPPCompany license

  • Mississippi

    Non-QM Business Purpose

    Standard PPP

  • Missouri

    Non-QM Business Purpose

    Standard PPP

  • Montana

    Non-QM Business Purpose

    Standard PPP

  • Nebraska

    Non-QM Business Purpose

    Standard PPP

  • New Hampshire

    Non-QM Business Purpose

    Standard PPP

  • New Jersey

    Owner-Occ Non-QM + Non-QM BP

    Special PPP

  • New Mexico

    Non-QM Business Purpose

    Special PPP

  • New York

    Non-QM Business Purpose

    Standard PPP

  • North Carolina

    Owner-Occ Non-QM + Non-QM BP

    Standard PPPCompany license

  • North Dakota

    Non-QM Business Purpose

    Standard PPPCompany license

  • Ohio

    Owner-Occ Non-QM + Non-QM BP

    Special PPP

  • Oklahoma

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Oregon

    Owner-Occ Non-QM + Non-QM BP

    Standard PPPLO licenseCompany license

  • Pennsylvania

    Non-QM Business Purpose

    Special PPP

  • Rhode Island

    Non-QM Business Purpose

    Special PPP

  • South Carolina

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Tennessee

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Texas

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • Vermont

    Non-QM Business Purpose

    Special PPPCompany license

  • Virginia

    Owner-Occ Non-QM + Non-QM BP

    Special PPPCompany license

  • Washington

    Owner-Occ Non-QM + Non-QM BP

    Standard PPP

  • West Virginia

    Non-QM Business Purpose

    Standard PPP

  • Wisconsin

    Non-QM Business Purpose

    Standard PPP

  • Wyoming

    Non-QM Business Purpose

    Standard PPP

Prepayment penalty guidelines by state

Non-owner occupied & investment property. Standard = up to 5-year PPP at 3% or 5% fixed flat penalty.

Penalty structure

  • 5% Fixed

    Penalty calculated at a flat 5% of the prepayment amount for the duration of the penalty term.

  • 3% Fixed

    Penalty calculated at a flat 3% of the prepayment amount for the duration of the penalty term.

  • 1% Fixed

    Penalty calculated at a flat 1% of the prepayment amount. Required in certain states.

Pre-Payment term length

No Pre-Pay up to 5 Years

Flexible term length selection

  • No Pre-Pay (0 years)
  • 1-Year
  • 2-Year
  • 3-Year
  • 4-Year
  • 5-Year

As long as permitted by state rules

How it works

Pair any penalty structure (5% / 3% / 1% fixed) with any term length from 0 to 5 years. The combination that applies to each loan depends on the state’s specific rules — reviewed in the table below.

Prepayment-penalty guidelines by state for non-owner-occupied and investment property
StateRuleDetails
AlabamaStandardUp to 5-yr PPP, 3% or 5% fixed
ArizonaStandardUp to 5-yr PPP, 3% or 5% fixed
ArkansasStandardUp to 5-yr PPP, 3% or 5% fixed
CaliforniaStandardUp to 5-yr PPP, 3% or 5% fixed
ColoradoStandardUp to 5-yr PPP, 3% or 5% fixed
ConnecticutStandardUp to 5-yr PPP, 3% or 5% fixed
DCStandardUp to 5-yr PPP, 3% or 5% fixed
DelawareStandardUp to 5-yr PPP, 3% or 5% fixed
FloridaStandardUp to 5-yr PPP, 3% or 5% fixed
GeorgiaStandardUp to 5-yr PPP, 3% or 5% fixed
IdahoSpecial RulesBusiness entity vesting: standard. Natural person with APR >8%: prohibited.
IllinoisSpecial RulesBusiness entity (excl. Cook County): standard. Natural person, APR ≤18%: standard.
IndianaStandardUp to 5-yr PPP, 3% or 5% fixed
IowaStandardUp to 5-yr PPP, 3% or 5% fixed
KansasStandardUp to 5-yr PPP, 3% or 5% fixed
KentuckyStandardUp to 5-yr PPP, 3% or 5% fixed
LouisianaStandardUp to 5-yr PPP, 3% or 5% fixed
MaineSpecial RulesProhibited if "rural property." Standard otherwise.
MarylandSpecial Rules3-year term MAX. Advance interest on prepayments >1/3 of original principal in any 12-month period.
MassachusettsStandardUp to 5-yr PPP, 3% or 5% fixed
MichiganSpecial Rules1-unit / 1st lien: 3-year MAX at 1% of prepaid amount. 5+ units: standard.
MinnesotaSpecial Rules1–4 units ≤$832,750: prohibited (threshold updates annually). Above threshold: standard.
MississippiStandardUp to 5-yr PPP, 3% or 5% fixed
MissouriStandardUp to 5-yr PPP, 3% or 5% fixed
MontanaStandardUp to 5-yr PPP, 3% or 5% fixed
NebraskaStandardUp to 5-yr PPP, 3% or 5% fixed
New HampshireStandardUp to 5-yr PPP, 3% or 5% fixed
New JerseySpecial RulesNatural person, 1–4 units: prohibited. Business entity: standard.
New MexicoSpecial Rules1–4 units: prohibited. 5+ units: standard.
New YorkStandardUp to 5-yr PPP, 3% or 5% fixed
North CarolinaStandardUp to 5-yr PPP, 3% or 5% fixed
North DakotaStandardUp to 5-yr PPP, 3% or 5% fixed
OhioSpecial Rules1–2 units, ≥$116,356: 5-year MAX at 1% of original principal. Under threshold (1st lien): prohibited. 3+ units: standard.
OklahomaStandardUp to 5-yr PPP, 3% or 5% fixed
OregonStandardUp to 5-yr PPP, 3% or 5% fixed
PennsylvaniaSpecial Rules1–2 units, ≤$329,411: prohibited. Above threshold & 3+ units: standard.
Rhode IslandSpecial Rules1–4 units: 1-year MAX at 2% of payoff balance (full prepay only). 5+ units: standard.
South CarolinaStandardUp to 5-yr PPP, 3% or 5% fixed
TennesseeStandardUp to 5-yr PPP, 3% or 5% fixed
TexasStandardUp to 5-yr PPP, 3% or 5% fixed
VermontSpecial RulesUnder $1M: prohibited. $1M+: standard.
VirginiaSpecial Rules1–4 units, 1st lien ≥$75k: standard. Under $75k: prohibited. 5+ units: standard.
WashingtonStandardUp to 5-yr PPP, 3% or 5% fixed
West VirginiaStandardUp to 5-yr PPP, 3% or 5% fixed
WisconsinStandardUp to 5-yr PPP, 3% or 5% fixed
WyomingStandardUp to 5-yr PPP, 3% or 5% fixed
Licensing requirements — broker / TPO

LO licensing — Non-QM Business Purpose loans

Only a handful of states require your originating LO to hold an individual license for Non-QM Business Purpose loans (DSCR & Hybrid Investment) submitted through TQL. TQL is already licensed where we lend — this is about your LO’s individual obligation.

  • California

    LO license required for Non-QM BP loans

  • Florida

    LO license required for Non-QM BP loans

  • Idaho

    LO license required for Non-QM BP loans

  • Oregon

    LO license required for Non-QM BP loans

  • Nevada

    License required — TQL does not lend here

  • South Dakota

    License required — TQL does not lend here

  • Utah

    License required — TQL does not lend here

Company / lender license requirements

These states require the lending entity to hold a specific license for non-owner occupied lending. TQL is already licensed — this is for your awareness as a broker. Your company’s own licensing may still be relevant depending on your state and structure. Always confirm with your compliance team.

  • Arizona

    Mortgage Banker License

  • California

    Real Estate Broker License OR Finance Lender License

  • Florida

    Mortgage Lender License

  • Idaho

    Mortgage Broker/Lender License

  • Minnesota

    Residential Mortgage Originator License

  • North Carolina

    Filing and bond requirement only

  • North Dakota

    Money Broker License

  • Oregon

    Mortgage Lender License

  • Vermont

    Lender License

  • Virginia

    Lender License

Why partners choose TQL

Built by originators, for originators. We know what kills Non-QM deals — because we’ve been on your side of the table. Owner-occupied, investor, and everything in between.

  • Speed

    Execution at the speed of your borrower

    • Setup in 24 hours or less
    • 24–48 hr UW decisions
    • Same-day docs, same-day funding
    • No ticket systems, direct comms

  • Execution

    We sweat the nuances that kill deals

    • Full Doc, Bank Stmt, 1099, Asset Depletion
    • STR-experienced AMCs & appraisers
    • Layered LLC vesting — no panic
    • Catch issues early, not late

  • Flexibility

    Built for real Non-QM scenarios

    • Owner-occ + investment Non-QM
    • 15% down on Hybrid Business Purpose
    • 80% cash-out, no seasoning required
    • Rural, unique, log cabins OK

  • Partnership

    Founder-led, hands-on, decisive

    • Top leadership on the deals
    • No corporate red tape
    • Dedicated AE who picks up
    • Roll up our sleeves with you

Where other lenders talk Non-QM, we execute. Owner-occupied and investment.

Case study · STR deal saved at the finish line

We took the file the day of closing. Closed in 7 days.

  • The problem

    STR deal collapsing at the finish line

    Low STR survey, AirDNA ratios under 1, existing lender heading for denial, major re-trade, or a down payment increase the borrower couldn't handle.

  • What TQL did

    Rapid triage. Decisive execution.

    We took the loan the day of closing. Identified the exact blockers, re-structured the file, and kept speed through tight internal coordination and direct communication.

  • The outcome

    Closed in 7 days. Deal saved.

    Borrower kept the terms. Broker kept the client — and earned a referral partner for life. When you can save a deal at the finish line, you don't just win a transaction.

Not all Non-QM lenders are the same. Two lenders can see the same deal — owner-occ or investment — and produce totally different outcomes. Execution is the difference.

Send us your hard deals

Got a Non-QM deal that doesn’t fit the box?

Send it over. We’ll help you structure it, execute it, and close it. Originator to originator — that’s how we work.

Contact your AESubmit a scenario

For informational purposes only. Effective April 2026. Total Quality Financial, Inc. (DBA Total Quality Lending) ©2026. All rights reserved. Not legal or compliance advice — consult your own professional advisers. Programs and rates subject to change without notice. Not available in all states. Terms subject to qualification. NMLSConsumerAccess.org.