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Non-QM loan: what it means

A non-QM loan is a mortgage that does not meet the requirements of a Qualified Mortgage (QM). According to the CFPB, a Qualified Mortgage cannot have risky features such as an interest-only period, a balance that grows (negative amortization), balloon payments or a term longer than 30 years, and it has limits on upfront points and fees.

In Spanish it is

Préstamo non-QM

Also written as: non-qualified mortgage · non-QM mortgage

A couple reads a leaflet together on the sofa at home.

Verified on October 17, 2026

3 official sources

See the whole dictionary

The full explanation

Lenders are not required to make only Qualified Mortgages, but most lenders must still make a good-faith determination that you can repay the loan (the ability-to-repay rule). Federal banking regulators have said a bank may make both QM and non-QM loans.

An example

Ernesto is offered a non-QM loan. Before signing, he checks the Loan Estimate to see whether it has interest-only payments or a balloon payment, and compares the points and fees with another offer.

You will see it in…

Lender ads and offers (“non-QM”)
The Loan Estimate, under “Loan Terms” and the product features
Our loan comparison tool

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “non-QM loan”

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. CFPB · What is a Qualified Mortgage? (external site) · in English · Verified on October 17, 2026
2. CFPB · My lender says it can't lend to me because of a limit on points and fees on loans. Is this true? (external site) · in English · Verified on October 17, 2026
3. FDIC · Qualified and Non-Qualified Mortgage Loans: Interagency Statement on Supervisory Approach (FIL-59) (external site) · in English · Verified on October 17, 2026