Non-QM (Non-Qualified Mortgage)

A mortgage that does not meet the Consumer Financial Protection Bureau’s qualified mortgage standards. Non-QM loans use alternative income documentation — bank statements, P&L statements, asset depletion, or DSCR. They serve borrowers who cannot qualify under traditional guidelines, typically at slightly higher rates.

Definition reviewed by Renzo Johnson, Licensed MLO, NMLS #PENDING. Last updated February 2026.