Glossary
Non-QM
Non-Qualified Mortgage products that fall outside CFPB's Qualified Mortgage rule, often serving self-employed, foreign-national, or DSCR borrowers.
Non-QM loans don't meet QM safe-harbor requirements (DTI cap, documentation standards, certain product features). Investors price them with higher rates and reserve requirements. Common non-QM documentation types include bank-statement, asset-depletion, profit- and-loss-only, and DSCR (debt-service-coverage ratio for investment properties).
Related