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Non-QM Loan: Overview, Pros and Cons, Example

By Kristi WaterworthUpdated Sep 28, 2025 at 4:38 PM | Fact-checked by Robin Hartill, CFP

Key Points

  • Non-qualified mortgages cater to those with nontraditional incomes or credit issues.
  • These mortgages may offer lower initial payments but carry higher long-term costs.
  • Non-QM loans don't meet CFPB standards, whereas nonconforming loans don't follow Fannie Mae and Freddie Mac purchasing guidelines.

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