The Non-QM, or sometimes referred to as Non-conforming loan programs, vary from mortgage lender to mortgage lender, but all are designed to solve the problems some borrowers face qualifying for a home loan due to self-employment, income from multiple sources, or even a credit ding in the past.
Non-QM loans are for people who may have found their dream home but were denied a home loan by traditional mortgage underwriting standards.
The borrower still needs to show proof that they can afford the mortgage obligations remains, but there is more flexibility for these special cases.
A non-qualified mortgage is often a temporary solution until you can better meet the standard mortgage guidelines. At that time, you can consider refinancing to a more traditional loan.