What is a non QM appraisal · The Real Estate Value Edge

Dec '25 • Education Thread-Drop Your ???

What is a non QM appraisal

🔍 What exactly is a “Non‑QM Appraisal”?

If you’ve ever heard a lender or underwriter say “this is a non‑QM loan,” here’s the quick breakdown 👇

QM stands for Qualified Mortgage.That means the borrower fits traditional mortgage guidelines — W2 income, standard DTI, clean credit, etc.

A Non‑QM (Non‑Qualified Mortgage) loan is for people who don’t fit those boxes:✅ Self‑employed borrowers using bank statements✅ Real estate investors with asset‑based income✅ Borrowers with recent credit events or alternative loan types

Because the loan is structured differently, the appraisal often comes with added instructions and lender‑specific requirements:

Expanded commentary on comps and neighborhood trends
Extra attention to market stability
Sometimes a rent schedule or income approach is required

Think of it like this →A Non‑QM appraisal order = a standard appraisal with extra depth to help lenders confidently assess risk on nontraditional loans.

So next time you see “Non‑QM” on your order form, know it’s not a different rule book — just a tighter lens on valuation.

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