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Mortgage Glossary

Non-QM Loan

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A non-QM loan is a mortgage that falls outside the Consumer Financial Protection Bureau's Qualified Mortgage standards, often using alternative income documentation.

What Non-QM Loan means

Instead of W-2s and tax returns, non-QM loans may use bank statements, 1099s, assets, or rental income. They serve self-employed borrowers, investors, and foreign nationals at slightly higher rates.

Florida example

A Florida self-employed borrower whose tax returns understate cash flow qualifies with a bank-statement non-QM loan. The flexibility opens financing that a strict conventional file would deny.

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