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Mortgage Glossary

Qualified Mortgage

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

A Qualified Mortgage (QM) is a loan meeting CFPB standards designed to ensure the borrower can repay, giving lenders legal protection.

What Qualified Mortgage means

QM rules cap points and fees, bar risky features like negative amortization and balloon payments, and generally limit DTI. Loans outside these rules are non-QM.

Florida example

A Florida borrower with standard W-2 income and a sub-43% DTI typically gets a QM loan. A self-employed buyer using bank statements falls into non-QM, which is fully legal but outside the QM safe harbor.

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