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Mortgage Glossary

Non-QM Loan

Mike Starr·Reviewed August 2026

A Non-Qualified Mortgage (Non-QM) is a home loan that does not meet the Consumer Financial Protection Bureau's "qualified mortgage" standards. Non-QM loans offer more flexible underwriting — such as using bank statements instead of tax returns for income verification — making them accessible to self-employed borrowers, real estate investors, or those with recent credit events. They typically carry higher rates.