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“Non-QM” stands non-qualified mortgage, this is a type of loan that doesn’t conform to certain eligibility and loan structure standards set out by the federal government(IE: Conventional, FHA &VA).

Yes, non-QM loans are safe. The Lender will evaluate your ability to pay off the loan. Typically they accept alternative documents as proof of repayment.

• Have higher DTI ratios, but can still afford to pay a mortgage
• Don’t have the specific documentation required by most traditional mortgage lenders ( Alt Doc)
• Those looking to get qualified solely off of deposits/bank statement ( Bank statement)
• Borrowers looking for interest-only mortgage loans, which can be useful for those looking to quickly flip a house or otherwise don’t plan to keep the property for a long period of time.

Non-QM loans can make it possible for non-traditional income earners to qualify for mortgage loans. While the lender may still assess your financial markers, such as income and DTI, you may still be able to qualify for a non-QM loan whose structure and/or requirements don’t quite meet the standards set out by the government.