 TITLE: What’s a Qualified Mortgage? CONTENT: When to Consider a Non-Qualified Mortgage\n-----------------------------------------\nMortgages that don't meet QM standards are less common than QM loans, but many lenders still offer them. Note, however, that a lender's willingness to accept a DTI ratio greater than 43%, or to relax some other ability-to-pay requirements, doesn't mean they'll take any borrower with a pulse. In fact, they may look even harder at applicants' other resources than lenders offering QM loans.\nSo who are good candidates for non-QM mortgages? Wealthy borrowers with sizable real assets but relatively little income are one class of candidate. These borrowers might not meet the DTI ratio required for a Qualified Mortgage, but could easily prove the ability to liquidate investments as needed to make mortgage payments.\nFirst-time homebuyers with moderate or low income who cannot meet Qualified Mortgage ability-to-pay requirements might also qualify for some non-QM mortgages, but they should be prepared to pay high interest rates and fees. END