What Is a Non-QM Loan?

Non-QM is the fastest-growing segment of non-traditional lending. A loan solution for a borrower with unique financial circumstances, it does not fit the mortgage mold typically associated with conventional government-backed loans. Similar to conventional loans, Non-QM has its own set of specific guidelines, although usually more flexible, to ensure that lender and borrower are completely protected. A Non-QM loan can be obtained for new home purchases, refinances, investment homes, second homes and any other scenario that does not fall under the umbrella of traditional lending practices.