Qualified Residential Mortgage

A Qualified Residential Mortgage (QRM) is a type of home loan that meets specific criteria set by regulators to reduce risk for lenders and investors. These standards typically include limits on how much you can borrow compared to your home's value (loan-to-value ratio), stable employment, and verified income. QRMs are considered safer because they are less likely to default, which helps promote a stable mortgage market. Borrowers with QRM status often benefit from easier access to financing or better loan terms, as lenders have more confidence in their ability to repay.