What is a Non-QM Loan Mortgage?
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%