A Non-QM (Qualified Mortgage) loan is a type of mortgage that doesn’t meet the standards set forth by the Consumer Financial Protection Bureau (CFPB) for qualified mortgages. These loans are typically designed for borrowers who don’t meet the strict criteria for traditional mortgages, such as those with non-traditional income sources or lower credit scores. Non-QM loans offer flexibility in underwriting criteria, allowing lenders to consider factors beyond just credit score and debt-to-income ratio. However, they often come with higher interest rates and may require larger down payments to offset the increased risk for the lender.