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Qualified mortgage (QM): what it means

A qualified mortgage (QM) is, according to the CFPB, a loan with less risky features and protections that make it more likely you can afford it. Under the ability-to-repay rule, the lender must make a good-faith effort to determine whether you can repay; if the loan is a QM, the lender is presumed to have followed that rule.

In Spanish it is

Hipoteca calificada (QM)

Also written as: QM · qualified loan

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

Verified on October 17, 2026

2 official sources

See the whole dictionary

The full explanation

In general, a QM cannot have an interest-only period, negative amortization or, with some exceptions, a balloon payment; it cannot exceed the rule's maximum term; it has limits on upfront points and fees; and the lender must verify your income and debts. FHA, VA and USDA loans are qualified loans.

An example

Two lenders make Inés offers. One is a qualified mortgage; the other has an interest-only period, so it cannot be a QM. Inés asks how her payment would change over time with each one.

You will see it in…

What the lender explains about the types of loans it offers
The CFPB's ability-to-repay rules (Regulation Z)
Offers of non-QM loans, which do not meet these rules

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 “qualified mortgage (QM)”

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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 · 12 CFR § 1026.43: minimum standards for transactions secured by a dwelling (Regulation Z) (external site) · in English · Verified on October 17, 2026