The projected downward trend shows originations falling from $2.26 trillion to $2.05 trillion. Forecast for 2022Companies actively trying to get ahead of the trend curve have focused on adapting, improvising and evolving, focusing on previously underserved markets.
In moving to Non-QM, mortgage brokers must first educate potential borrowers and alert them to the opportunities that exist. The pessimistic news in the evening news does not adequately reflect the likelihood and opportunity to have a significant impact on investors’ long-term portfolios. Consider a buyer who has built up significant equity and is looking to convert it into an extended portfolio. Similarly, there are non-QM loan products for professionals looking to buy their first home or enter the short-term rental market.
Other potential borrowers under the proverbial stone:
- gig worker
- workers with productive side jobs
- Borrowers with life events such as divorce
- Borrowers who switched gears during the pandemic
- I can’t stop watching that YouTuber’s kids
Mortgage brokers should consider incorporating additional measures in conjunction with agency programs with current and projected declines. When you look to introduce non-QM products to potential customers, the potential refinancing and additional properties you acquire have the added bonus of stimulating your investor customers for life.
While deviating from agency guidelines, non-QM lenders like Champions Funding outline a potential borrower’s ability to repay without the sheer burden of traditional income and employment documentation requirements. I’m here. Instead, relying on common-sense valuations of credit, collateral, and capacity related to reserves and down payments is a viable means of serving an expanded borrower population. In addition, we offer a program where investment property cash flows can act as qualifiers. With unique niches and features such as eligible vacant properties with proposed rental income. Additionally, agency loan limits for high value purchases do not exist in Non-QM.