A non-qualified mortgage — or non-QM — is a home loan that is not required to meet agency-standard documentation requirements as outlined by the Consumer Financial Protection Bureau (CFPB).
- Flexible loan eligibility requirements, including credit scores and debt-to-income (DTI) ratios
- Lenient application review processes, such as financial documentation and employment verification
- Borrowers not eligible for VA, FHA, or other government loan programs
- Alternative financing options for people who do not generate consistent income (contract workers, freelancers, small business owners, etc.)
- Additional loan options including extended loan terms exceeding 30 years, interest-only payments and negative amortization
Note: Interest rates may be higher compared to conventional mortgages due to overall risk factor.