AD Mortgage Correspondent

Non-QM Mortgages: Getting more business when Conventional rates rise

With Conventional rates on the rise again, now is a perfect time to reconsider Non-QM mortgages if you have been waiting or reluctant. The fact is that Non-QM loans from A&D Mortgage are good-performing loans that help the mortgage industry by allowing borrowers who miss traditional financing to qualify for potential homeownership at competitive rates.  Non-QM borrowers are no different than conventional borrowers – and in most cases are identical in their ability to repay and put down 20% – but are looking for a loan higher than conforming loan limits.

However, the pandemic has affected many borrowers’ ability to qualify for conventional loans. and our Non-QM programs help to alleviate that, especially for small businesses and self-employed or gig economy workers. We offer a wide range of programs – DSCR, 12- and 24-month bank statements, 1- and 2-year P&Ls – designed to help you save money by refinancing or buying a home to live in or invest in.

Why is now a suitable time to reconsider Non-QM? A recent article on MPA.com shows that:

  • Up to 65 million workers have filed for unemployment since the start of COVID-19
  • About half of those who lost their jobs are employed again
  • More than 2,000,000 homeowners are in forbearance and another 1,000,000 were already in some stage of default prior to the pandemic
  • About 30 million self-employed borrowers comprise the “gig” economy

For people with income disruptions that happened between 13-24 months, a 12-month bank statement loan could benefit them because they need to only show a consistent and steady income for the past year. In addition, with this type of loan, any pre-pandemic employment or income gaps 2 years ago become irrelevant. If your borrower has saved money during the pandemic, they could acquire an investment property with a DSCR loan, which requires no income documentation whatsoever. Lastly, if your borrower is coming out of a forbearance plan, they only need to show 3 consecutive payments to qualify for a Non-QM loan. These are just a few examples where A&D could close your loan with a Non-QM mortgage.

The bottom line is that you will need to work with a trusted lender accustomed to handling these unconventional situations – credit issues, irregular income streams with extra documentation requirements — with speed, flexibility, and a solid understanding of available Non-QM options. You need A&D.

Call A&D Mortgage at 1-855-235-6267 or visit www.admortgage.com to learn more about why Non-QM mortgages are a viable option in a rising conventional rate environment.