Non-QM Market Continues to Thrive in 2025

As global uncertainty continues to rise, the non-QM market is hitting its stride. According to industry experts, non-QM momentum is on the rise as a result of a combination of factors including the current political atmosphere, more effective marketing techniques, and organic growth within the borrowing population.

One of the most apparent factors impacting the non-QM market right now is economic uncertainty. Economic experts believe that financial moves the Trump administration is likely to make will boost the number of borrowers looking to non-QM loans as an option.

Government-sponsored enterprises are likely to tighten credit standards, making it more difficult for the average buyer to qualify for a loan.

More stringent lending requirements lead to organic growth within the borrowing population that’s seeking out non-QM loans because many individuals get pushed out of the traditional borrowing market. Suddenly, they find themselves no longer eligible to pursue traditional loans, so they have to look for alternatives.

What’s more, industry experts expect government-sponsored enterprises to start making shifts in policy soon. Just recently, President Trump made a social media post indicating that he’s considering making Fannie Mae and Freddie Mac public. Prior to this possible shift, the two GSEs have been under government oversight for over ten years. Becoming public would inevitably cause the companies to reconsider their risk levels, and it will almost certainly lead to updated eligibility requirements.

Non-QM lenders provide flexible loans with far fewer requirements and standards. One sector of the population that favors these types of loans is self-employed individuals. These groups typically can’t qualify for a traditional loan due to not having a primary, steady source of income. Instead, they can use their bank statements to apply for a non-QM loan and prove they have the means to pay back a loan. Another group that often goes for these types of loans is real estate investors. Typically, these borrowers see non-QM loans as leverage rather than loans because they can save a lot of money in taxes.

Statistics show that non-QM loans made up around 5% of all mortgage originations in 2024, which is a huge increase from pre-2020 levels.

Overall, non-QM loans provide a much-needed service to under-served borrowers who can afford to make payments on a loan but can’t qualify for a traditional loan due to non-traditional situations.

Non-QM Home Loans Can Fund Your Non-Conventional Mortgage

Here at Non-QM Home Loans, our team will work with you to determine your options based on your specific circumstances. Our company has funded over $2 billion in loans, and we’re ready to help you, too.

We have experience providing alternative lending options to individuals who are self-employed, foreign nationals, looking to purchase an investment property, on a stated income, or struggling with a no-documentation or low-documentation situation.

You can learn more about our options by clicking through our interactive menu. If you’d prefer, you can also contact one of our agents directly by calling us at (800) 413-0240.