Non-QM loans, also known as non-qualified mortgage loans, are home loans that do not meet the criteria set by the Consumer Financial Protection Bureau (CFPB) for qualified mortgages. These loans are often provided by private lenders and are designed for borrowers who may not qualify for traditional financing due to their unique financial circumstances.

Unlike qualified mortgages, which have standardized criteria to ensure that borrowers can repay the loan, non-QM loans are more flexible and can take into account a wider range of factors, such as a borrower's income sources, employment history, and credit score. This flexibility allows lenders to serve borrowers who may have irregular income, non-traditional employment, or credit issues that would prevent them from qualifying for a traditional mortgage.

Because non-QM loans do not meet the standards set by the CFPB for qualified mortgages, they may have higher interest rates and fees than traditional mortgages. However, they can be a valuable option for borrowers who have unique financial situations and may not qualify for traditional financing. It's important to work with a reputable lender who can help you understand the terms and requirements of a non-QM loan and determine whether it's the right option for your specific needs.