Non-QM
What is Non-QM?
Non-Qualified Mortgage — the regulated category of loans that fall outside the CFPB’s rigid Qualified Mortgage standards. The entire space TQL operates in.
Non-QM stands for Non-Qualified Mortgage. The Consumer Financial Protection Bureau, under the Dodd-Frank Act, defined Qualified Mortgages (QM) as a class of loans that meet specific underwriting criteria — including a DTI cap (generally 43%), no risky features like negative amortization or balloon payments, full Ability-to-Repay documentation via tax returns/W-2s, and standardized fees.
A non-QM loan is anything that doesn’t fit that box but still meets the underlying Ability-to-Repay rule. Common reasons a loan is non-QM include: alternative income documentation (bank statements, P&L, 1099, asset utilization), DTI above QM caps, interest-only features, loan amounts above QM limits, or borrowers without standard W-2 income (self-employed, investors, foreign nationals).
Non-QM is NOT subprime. Modern non-QM is fully Ability-to-Repay compliant under federal law — lenders just have flexibility in how they verify ability to repay. Most non-QM borrowers are strong-credit, asset-rich, self-employed individuals whose tax returns understate their true financial profile.
How Non-QM applies at Total Quality Lending
Total Quality Lending is a non-QM specialist. Every program we offer is non-QM: DSCR (rental-income qualification), Foreign National DSCR (no U.S. credit required), Multi-Unit DSCR (5-9 unit properties), and Prime Time (Standard, Bank Statement, 1099, Asset Utilization, P&L, Written VOE doc paths up to 90% LTV on primary). We do NOT offer FHA, VA, USDA, or conventional Fannie/Freddie loans — if you need one of those, a different lender is the right fit.