Non-QM loans are helping fuel the already booming housing market. Borrowers who cannot qualify for a traditional qualifying mortgage (QM) may now qualify for non-QM lending programs. Non-QM loans can finance primary residences, second homes, and investment properties. Non-QM and specialty mortgages are not hard money loans. Interest rates for non-QM mortgages are higher than those of QM loans. Especially for those with less than 20% down because mortgage insurance is not available for these products. That makes them much riskier for lenders.