Definition

Non-Qualified Mortgage

A Non-QM (Non-Qualified Mortgage) home loan is a mortgage that does not meet the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) standards but is still fully compliant with federal lending regulations. These loans are offered by private lenders to serve borrowers with non-traditional income, credit, or financial profiles.

Description

Trusted Partnerships Built

Non-QM home loans are designed for creditworthy borrowers who do not fit standard underwriting models used for conventional, FHA, VA, or USDA loans. Rather than relying strictly on W-2 income and traditional debt-to-income ratios, Non-QM lenders use alternative methods to assess a borrower’s ability to repay.

Income Documentation

Allows alternative income verification such as bank statements, profit and loss statements, asset depletion, or rental income.
Borrower Profiles

Commonly used by self-employed individuals, business owners, real estate investors, and borrowers with recent credit events.
Credit Flexibility

More lenient guidelines for credit scores, bankruptcies, foreclosures, or late payments (with seasoning requirements).
Loan Types

Available for primary residences, second homes, and investment properties.
Interest Rates

Generally higher than QM loans to reflect increased underwriting flexibility.
Down Payment

Often requires a larger down payment or more equity than traditional loans.
Loan Structure

Offered in fixed-rate and adjustable-rate options, including interest-only programs.
Start today

Ready to Take the Next Step?

Experience trusted service, personalized mortgage programs, and expert guidance that make your homeownership journey smooth and successful.

Get started