8 This new eight types of home-based house-buy fund you to definitely finance companies are asked to take on was GSE-qualified, authorities, QM non-jumbo low-GSE-qualified, QM jumbo, non-QM jumbo, non-QM non-jumbo, and you will subprime. The word a QM are put from the 2013 Mortgage Laws underneath the Facts within the Financing Work (twelve CFR Area , Control Z). The high quality for an effective QM excludes mortgages which have loan attributes for example because negative amortization, balloon and you will desire-simply payment times, terms and conditions surpassing three decades, alt-An excellent or no documents, and you can overall points and you will fees you to exceed 3 % of the loan amount. At the same time, a beneficial QM requires that brand new monthly personal debt-to-money ratio off borrowers perhaps not meet or exceed 43 percent. For lots more into the capability to pay back and you will QM standards less than Control Z, comprehend the Individual Monetary Defenses Bureau (2019), Ability to Pay off and Qualified Home loan Criteria Beneath the Insights inside the Credit Operate (Regulation Z), web page, Go back to text