When times get financially tough, most lenders will abandon you as quickly as they sold you the terms of your loan. That’s because at the end of the day, most lenders only care about your ability to pay them back and earn them a profit.
This dismaying fact is why so many Americans struggle to obtain loans in the first place. Often, the typical American doesn’t have excellent credit without any missteps, and this has only become more apparent with the turbulent times over the past few years.
Since the pandemic, many lenders have tightened their financial requirements, making it even harder for the traditional American to qualify for mortgages and other loans.
Non-QM loan companies, however, did not take this stance and instead continued to offer out loans to Americans facing non-traditional financial situations. Back in 2020, non-QM loan companies owned a very small margin of the total market share for mortgage loans, coming in at only 2%. Within just two short years, they’ve carved out 5% of the market, and they’re continuing to thrive and grow.
Many experts attribute this growth to one factor – stability.
Stability of the non-QM sector is, in part, made possible due to manual underwriting for each borrower. Rather than making each potential borrower fit through a specific cookie-cutter shape to reduce the risk for the lender, non-QM lenders focus on qualifying borrowers and assuming the risks themselves. This allows non-QM lenders to play the long game better than traditional lenders.
Stability is also made possible due to the responsiveness of other lenders on the market. Pricing speculation is always difficult, but competitive pricing helps secure stability and longevity of a mortgage provider.
Is a Non-QM Loan a Good Solution for You?
Has the foundation of your financial stability been shaken over the past few years? If so, then you’re far from alone. One of the biggest reason why non-QM loans have been able to secure a greater share of the market is because more consumers are being herded towards these non-traditional loan solutions after suffering from the turbulent economic times.
If you’re interested in exploring your options when it comes to securing a non-QM loan, then we can help. Consider browsing through our online form to learn more about the options we offer here at Non-QM Home Loans.
If you’d prefer, then you can also contact an agent over the phone at (800) 413-0240.
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