What is a non-qualified mortgage?

Loans that don’t follow such strict guidelines are called Non QM Mortgage loans.

A non-qualified mortgage (non-QM) is a property loan that has been created to help borrowers designed to help borrowers who can't meet the strict criteria of a qualifying mortgage. So if you are self-employed or have credit blemishes or don’t qualify for a conventional or agency mortgage for some reason, then you can go for a Non-qualified mortgage loan instead.

The easiest way to figure out what a non-qualifying mortgage is, you need to understand the main criteria:

Income: You must have income that can be verified by strict guidelines with income history by way of pay stubs, W-2s, and tax returns.

Debt: Your debt-to-income ratio (DTI) must be less than a certain percentage threshold. This shows what portion of your income is going towards paying your debts.

Loan term: Usually these loans are 30 years or less.