Mortgage glossary
Non-QM loan
Definition: A non-QM loan is a mortgage that falls outside the federal qualified mortgage standards, using alternative ways to document income or property cash flow for borrowers who do not fit agency guidelines.
Non-QM lenders still must make a reasonable, good faith determination that the borrower can repay, but they can use tools agency loans do not allow, such as bank statements, asset utilization, 1099 income, or rental income alone. Pricing and down payment requirements are generally higher than for conventional loans.
Our non-QM programs cover owner occupied, second home and non-owner occupied properties, with 12 or 24 month bank statements, asset utilization, asset depletion and 1099, DSCR, P&L only, 30 and 40 year interest only, ITIN, cryptocurrency, recent housing events, and foreign national options.
Related terms
Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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