I'm having trouble getting approved at my local CU

QM stands for Qualified Mortgage, which basically means your application meets a more strict set of requirements, and primarily about proving and documenting income in many cases Non-QM means it doesn't meet those tighter income restrictions. Some people call Non-QM sub-prime, and use the term as interchangeable. The loans are 100% completely legal. Another option for Non-QM is for some more 'sub-prime' qualities of a client, for example, I can offer a loan to someone just one day out of a bankruptcy, where in the traditional loan world, that is impossible. You should always try for a regular loan first, but based on your individual situation, a non-QM loan may be the perfect loan for you. I do traditional and Non-QM loans in MN, WI, and SD. I can be reached at iMortgageJoe.com. NMLS274132