A Non-QM Loan is a mortgage that doesn’t adhere to the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage (QM) standards, serving borrowers with unique financial situations like self-employment, variable income, or past credit issues. These loans offer greater flexibility than traditional mortgages, making them suitable for those unable to meet strict income or debt-to-income requirements. However, Non-QM loans generally carry higher interest rates and fees due to perceived risk. Borrowers should weigh these additional costs and consider financial advice to decide if a Non-QM loan aligns with their homeownership goals despite their unconventional financial background.