Non-QM Mortgage Navigator
Jumbo vs QM vs Non-QM
Jumbo, QM and Non-QM describe different things. Jumbo primarily describes a loan outside the applicable conforming loan-limit framework; QM and Non-QM concern the mortgage's regulatory/product characteristics. A jumbo loan can be QM or Non-QM.
Conforming vs jumbo
Conforming status concerns whether a loan fits the applicable agency/conforming framework, including loan limits and eligibility.
QM vs Non-QM
QM and Non-QM should not be used as synonyms for conforming and jumbo.
Non-conforming is broader
Non-conforming can include jumbo and other loans that do not fit agency purchase criteria.
Use precise labels
Start with loan purpose, occupancy, amount, documentation and property before deciding which label is useful.
MortgageDadOf3 guardrail: Non-QM is not one universal guideline. Exact credit, LTV, DTI, reserves, documentation, property, pricing and state eligibility can vary by lender, investor and product. Consumer-purpose loans also remain subject to applicable federal and state law.