Non-QM Loans

A Non-QM loan (Non-Qualified Mortgage loan) is a type of mortgage that doesn't meet the strict criteria set by the Consumer Financial Protection Bureau (CFPB) for a "Qualified Mortgage" (QM). These loans are designed for borrowers who may not qualify for traditional loans but are still creditworthy.

Key Features

Who might use a Non-QM Loan?

Self-employed individuals
Real estate investors
Borrowers with recent credit events
High-net-worth individuals using asset-based qualifying
Foreign nationals with limited U.S. credit history

Flexible Income Documentation

Accepts alternative income verification methods like bank statements, asset depletion, or profit and loss statements.

Higher DTI Ratios Allowed

Can accommodate borrowers with higher debt-to-income (DTI) ratios than QM guidelines typically allow.

Unique Borrower Profiles

Ideal for self-employed borrowers, gig workers, real estate investors, or those with non-traditional income sources.

Credit History Flexibility

May allow for recent credit events like bankruptcies or foreclosures, depending on the program.

Interest-Only Options

Some Non-QM loans offer interest-only payments for a set period.