A "non-QM loan" stands for "non-qualified mortgage," which is a type of mortgage loan that doesn't meet the standard requirements set by the Consumer Financial Protection Bureau (CFPB), allowing borrowers with unique financial situations, like self-employed individuals or those with inconsistent income, to qualify for a home loan even if they wouldn't meet traditional mortgage criteria; however, these loans often come with higher interest rates and may require larger down payments due to the increased risk for lenders.
