Non-Qualified Mortgage (Non-QM)

A Non-Qualified Mortgage (Non-QM) is a type of home loan that doesn't meet the strict criteria set by government-sponsored agencies like Fannie Mae or Freddie Mac. These loans often cater to borrowers with unique financial situations, such as irregular income, self-employment, or past credit issues. They typically have different underwriting standards, possibly including higher interest rates or less traditional documentation requirements. Non-QM loans provide more flexibility for borrowers who may not qualify for standard mortgages, helping them achieve homeownership while still adhering to responsible lending practices.