Non-QM Loan

Non-QM loans, short for Non-Qualified Mortgage loans, are a category of mortgage financing that doesn't meet the standards set by government-sponsored enterprises like Fannie Mae or Freddie Mac. Unlike conventional mortgages, Non-QM loans cater to borrowers who may not fit the typical criteria for a home loan. These loans are designed to accommodate individuals with unique financial situations, such as self-employed individuals, those with irregular income, or individuals with credit issues. Non-QM loans often offer more flexibility in terms of income verification and credit requirements, making homeownership accessible to a broader range of borrowers. However, it's important to note that Non-QM loans typically come with higher interest rates compared to conventional mortgages, reflecting the increased risk associated with non-traditional borrower profiles.