QM
Residential
Loan designed to make homeownership more affordable. Safe and stable.
Residential QM loans are designed to provide a safer and more transparent lending environment for borrowers. These loans are commonly used by individuals seeking to purchase or refinance their primary residences. They conforms to specific criteria established by the Consumer Financial Protection Bureau (CFPB) to ensure borrower affordability and reduce the risk of default.
Consumer Protections: Residential QM loans are designed to protect borrowers by imposing specific lending standards that reduce the risk of default, making the loan terms more understandable and transparent.
Stable Interest Rates: QM loans often come with fixed interest rates, providing borrowers with predictable and stable monthly payments.
Lower Interest Rates: Because QM loans are considered lower risk by lenders, they typically come with lower interest rates compared to non-QM loans, which can save borrowers money over the life of the loan.
