Are you leaving money on the table by only offering conventional home loans? Non-QM loans have been increasing in demand since their inception in 2015. The Mortgage Bankers Association forecasted Non-QM originations will reach $3.85 trillion in 2021, a new record after 2020’s $3.83 trillion in origination. 2022 shows no signs of slowing down.
Predictions are the Non-QM market will grow to be 10% of the mortgage market in the new year. This indicates an opportunity for brokers to grow their business by offering a wider selection of loan products. If you’re unfamiliar with Non-QM, consider this a quick primer.
Offering Non-QM loan products allows you to tap into new markets of potentially underserved borrowers. How often do you hear about young professionals finding it difficult to obtain a home loan – or self-employed borrowers who lament their lack of conventional documentation to prove their income? If you’re not working with these borrowers now, offering Non-QM loan products could help you attract these borrowers. The U.S. Bureau of Labor Statistics cites there are ten million self-employed business owners. Wouldn’t you like to work with millions of new borrowers?
Because Non-QM loans have more flexible terms than conventional QM loans, they are a great solution for a wider range of buyers. In contrast to Non-QM loans, conventional QM loans come with very rigid underwriting guidelines; with A-paper underwriting matrix doesn’t allow for much flexible, when needed, and that’s where Non-QM can help. Non-QM serves borrowers who may not fit the traditional box when viewed from the Conventional QM perspective. However, these same borrowers may be just as credit worthy as others. This group of borrowers includes self-employed investors who seek to qualify their ability to repay based on their rental income.
To tap into this new group of borrowers, brokers will need to become familiar with Non-QM loan products. Choose a Non-QM partner with a variety of loan products and the expertise to help you match this new borrower base with the right one – HomeXpress Mortgage is the partner you need.
Whether a borrower has a high DTI, less than perfect credit or must rely on alternative income documentation, HomeXpress Mortgage has a Non-QM loan product that can help. Learn more about HomeXpress Mortgage’s offerings:
PrimeX is the HomeXpress Mortgage Non-QM loan product for borrowers who nearly miss the mark for conventional underwriting. HomeXpress offers our lowest rates with this program on loan amounts up to $3,000,000.
CoreX is a HomeXpress Mortgage Non-QM solution for borrowers who face additional challenges in securing a home loan. With a low credit score and flexible forbearance guidelines, borrowers may qualify for this program with full or alternative documentation – even profit and loss statements. The program also allows financed discount points and cash out.
HomeXpress Mortgage InvestorX program offers Non-QM loans with competitive rates for investors seeking to expand their property portfolio. This program is popular in today’s Airbnb/VRBO rental environment! With only two ratings required—a housing history on the subject property and the investor’s primary residence – we have eliminated the headache of gathering documents on multiple other properties owned.
As competition grows in the mortgage industry, more brokers are seeking ways to work with largely underserved borrowers. This includes young professionals, self-employed borrowers, borrowers with credit events, and more. Having Non-QM loan products available will allow you to potentially turn a “No” into a “Yes” with such borrowers.
If you have questions and would like to talk to an experienced and knowledgeable Account Executive, give our team a call at (855) 598-1430 or submit a loan scenario today.