The Hardest State in the Country to Place a Non-QM Loan
That is a strong claim, so here is the reasoning.
Three things have to line up for a Non-QM investor to write a loan: the balance has to clear their minimum, the property has to appraise with supportable comparable sales, and the lender has to actually be active in the state. West Virginia is one of the very few places where all three are simultaneously difficult.
Loan minimums. West Virginia has among the lowest median values in the country. Most Non-QM programs floor around $75,000 to $150,000, and a large share of the state’s investment inventory prices below that. The deal works; the lender’s minimum does not.
Appraisal support. Outside a handful of corridors, comparable sales are genuinely thin. Appraisals take longer, come in low more often, and occasionally cannot be completed at all on unusual or remote property.
Lender coverage. West Virginia is a small market, and a meaningful number of wholesale investors either exclude it or write it inconsistently.
None of this means you cannot finance here. It means the order of operations matters more than in any other state on this list: confirm the lender writes in West Virginia, confirm your balance clears their floor, and confirm the property type is eligible before you spend anything on inspection or appraisal.
That is exactly what a broker with multiple shelves is for, and it is the reason a single retail lender is a poor bet in this market.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans in West Virginia. Given the coverage and minimum problems described above, knowing which shelves actually write here and at what floor is most of the practical value on a West Virginia file.
We quote DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
Capital Home Mortgage West Virginia West Virginia operations across 1099, bank statement, asset, and DSCR programs.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Griffin Funding Publishes qualifying on 90 to 100 percent of gross 1099 income, 620 minimum credit, and loan amounts to $4 million.
NASB (North American Savings Bank) Among the longest-running alternative documentation programs in the country, with a 1099-NEC based option.
Deephaven Mortgage A long-established Non-QM lender with DSCR and alternative documentation programs across the region.
Newpoint Mortgage A Non-QM lender covering the surrounding region with DSCR, mixed-use, and closed-end DSCR second mortgage programs.
West Virginia has the thinnest local Non-QM bench of any market in this series, and coverage among national lenders is uneven. Verify current licensure and state availability before relying on any listing — see the disclaimer at the end of this page.
Energy Income Needs the Same Discipline as Oklahoma
West Virginia’s independent earners include a substantial energy contingent Marcellus and Utica shale contractors, day-rate operators, service company principals, royalty owners, and independent landmen.
That income moves with natural gas prices, which move on a cycle unrelated to your capability as a borrower. Run twenty-four months, not twelve. A short lookback that lands in a strong stretch overstates you and invites conditions; one that lands in a soft stretch understates you badly.
Identify your contract structure before you choose a product, because energy earners are paid several ways and they document differently:
- Day-rate 1099 the cleanest fit for a 1099 program
- S-corp K-1 distributions not 1099 income; likely a bank statement or P&L file
- Royalty income documents separately and is treated differently by different investors
- Independent landman usually 1099, often across multiple operators
Bring a short written explanation of your work cycle with the file rather than answering a condition about it later.
How Qualifying Works
A 1099 loan qualifies you on income documented on your 1099 forms rather than the net profit shown after deductions.
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Trades and equipment-heavy contractors a large share of West Virginia’s independent workforce get hit twice by conventional underwriting: once by their deductions, again by any program applying a heavy expense factor. Gross-receipts qualifying is frequently the only product that reflects reality.
Model the payment with our mortgage calculators.
West Virginia’s 1099 Population
Energy and extraction contractors across the northern and central gas plays.
Construction and specialty trades, including a substantial pipeline and industrial maintenance contingent.
Owner-operator trucking along the I-79 and I-81 corridors.
Healthcare contracting around the Morgantown and Charleston medical systems.
Tourism and outdoor recreation operators rafting, climbing, and guiding around the New River Gorge, seasonal and independent.
West Virginia Investment Markets
Morgantown is the state’s most reliable investor market, with university-driven rental demand, the best appraisal support in the state, and values high enough to clear most loan minimums.
Charleston and Huntington support steady demand from government, healthcare, and university employment at value-corridor prices.
The Eastern Panhandle Martinsburg, Charles Town, Harpers Ferry functions as outer Washington DC metro. Values are higher, demand is stronger, and financing is materially easier than in the rest of the state. If your portfolio crosses into Maryland or Virginia, confirm your lender is licensed there too.
New River Gorge and the Southern coalfields support a growing outdoor-recreation short-term rental market at low acquisition cost appealing returns, but the loan minimum problem is at its worst here and seasonal rent annualizes poorly.
Rural counties are where all three constraints described at the top converge.
Other West Virginia Specifics
Non-judicial foreclosure by deed of trust is available, which is comparatively favorable for investors and supports better LTVs where a lender will write at all.
Mineral rights are frequently severed from surface ownership in West Virginia, and this shows up on title routinely. It does not usually prevent a residential loan, but it is worth understanding what you are buying, and it belongs with a West Virginia attorney rather than a lender.
Property taxes are low, which helps ratios one genuine advantage.
Older housing stock and terrain. Hillside foundations, access, and drainage are routine appraisal considerations, and much of the urban stock is pre-1978 with the lead disclosure obligations that brings.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: 620 floor at most investors; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA modest in absolute dollars given values
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
On paper West Virginia is an excellent DSCR state rent-to-price ratios clear easily and property taxes are low. In practice the loan minimum and coverage problems bind before the ratio ever becomes the issue.
Use DSCR in Morgantown, Charleston, and the Eastern Panhandle where balances clear the floor.
Use a 1099 loan where the balance clears the floor but the property has no rental history, where it needs work first, on New River Gorge seasonal property, or where you are also buying a primary residence.
Where the balance clears neither, the practical route is cash acquisition followed by a DSCR refinance once improvements have raised the value enough to clear the minimum.
Questions to Ask
- Do you lend in West Virginia, and what is your minimum loan amount? (Both, first, every time.)
- Do you qualify on gross 1099 income, or apply an expense factor?
- My income is energy day-rate will you run 24 months?
- Have you appraised in this county recently, and how long did it take?
- Are you licensed in Maryland and Virginia too? (Ask this in the Eastern Panhandle.)
- Can you quote DSCR on the same property?
More from Select Home Loans: DSCR loans · DSCR refinance · Learning Center · About Select
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in West Virginia, currently offers the program described, or will approve your file.
Mineral rights, title, and severed-estate questions carry real consequences and should be reviewed with a West Virginia attorney. Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure through NMLS Consumer Access at nmlsconsumeraccess.org.
Select Home Loans, NMLS #2384002. Equal Housing Opportunity.
