Non-QM loans
Loans for files that don't fit the standard qualifying box, reviewed on their own terms.
What it is
A qualified mortgage, or QM, is a loan that meets one set of federal rules. A non-QM loan sits outside that set. That is all the name means. It is not a lesser loan and it is not a loophole. It is a different rulebook for borrowers whose income or history does not fit the standard shape.
Start with the standard path, then compare the documentation, review and full offer when that path does not represent the file well.
Who it's for
- Self-employed borrowers whose returns don't show their real cash flow
- Borrowers still inside the waiting period after a credit event
- People with real assets but income that is hard to document
The essentials
A different rulebook, not a shortcut
The lender still has to believe you can repay. Non-QM changes how you show that. It does not change that you have to.
The tradeoffs are real
Easier paperwork usually costs you somewhere else in the terms. Compare the whole offer, not one feature.
Guidelines move
Each lender writes its own non-QM programs and revises them. What is on offer this month may not be next month, which is why anything specific has to come from a current quote rather than from a page.
Common questions
- Is a non-QM loan a subprime loan?
- No. Subprime was about weak credit. Non-QM is only about whether a loan meets one federal definition. Plenty of non-QM borrowers have strong credit and real money in the bank.
- Should I try a standard loan first?
- Usually worth checking. If a conventional, FHA or VA loan fits your file, that comparison is worth doing before anything else. Non-QM earns its place when the standard path genuinely does not work for you.
Source: CFPB, what a qualified mortgage is. Current program documents and the borrower's final disclosures control.
That source defines what a qualified mortgage is. Non-QM is simply everything outside that definition, so the source establishes the line and nothing beyond it. There is no single non-QM rulebook to point you at: each lender writes its own programs and revises them, which is why the terms you are offered have to come from a current quote rather than from a page.
This page is general information about loan programs, not a commitment to lend or an offer of credit. Program availability, terms, and qualification depend on your situation and are subject to underwriting approval. Tareq Maayta, NMLS #1443073. Loans through Finance USA Corporation, NMLS #135625. Equal Housing Opportunity.