Non-QM (Non-Qualified Mortgage)
A category of mortgages that don't meet the Consumer Financial Protection Bureau's "qualified mortgage" rules. DSCR loans, bank statement loans, ITIN loans, and foreign national loans are all non-QM products. They serve borrowers who can't qualify under standard DTI-based underwriting.
Why it matters on a DSCR loan
For investors, non-QM is not a red flag — it simply means the loan qualifies on something other than personal DTI, which is exactly what self-employed borrowers and portfolio builders need. The practical implication is that non-QM files are underwritten to lender-specific guidelines rather than a single federal standard, so terms like LTV caps and reserve requirements vary meaningfully between programs. Shopping multiple non-QM lenders, or working with a broker who does, often changes the deal economics more than negotiating rate.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).