Non-QM Morgage Loans

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).

Non-QM loans may encapsulate a wide variety of mortgages, including:

• Home loans exceeding 30-year terms
• Home loans with negative amortization
• Home loans with interest-only payments

Non-QM loans may also exceed the CFPB’s current price-based thresholds:

• QM Safe Harbor APR ≤ APOR + 1.50%
• QM Rebuttable Presumption: APR > APOR + 1.50%, but ≤ 2.25%

Advantages of Non-QM Loan loans:

• Flexible loan eligibility requirements
• Lenient application review processes
• Alternative financing options for people who do not generate consistent income
• Additional loan options including extended loan terms exceeding 30 years, interest-only payments and negative amortization