A home loan not required to meet agency-standard documentation requirements as outlined by the CFPB.
A non-qualified mortgage (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).
These riskier loan products have higher rates and less desirable loan terms, but allow for non-traditional buyers to buy a home, whereas they may not qualify with traditional financing. Borrowers typically obtain Non-QM loans in the short term and refinance into a conventional loan once their creditworthiness improves.