As the financial market shifts, it’s crucial to stay updated on loan solutions that make sense for today’s borrowers. And one industry trend that’s making waves is Non-QM (non-qualified) loans.
Incorporating these unconventional mortgage solutions to your product offering can have a positive impact on your business. Not only can they help you reach a more diverse set of borrowers, but they also can help you adapt to evolving market conditions, ensuring that your business thrives – even if the market is unpredictable.
As we start the beginning of a new year, consider tapping into these loan solutions to ensure you stay ahead of the competition and can call yourself a well-rounded solution provider. Here’s how Non-QM loans can help you in 2024:
Expand Your Client Base
As a mortgage pro, you likely come across a wide range of borrowers. Some may be strong borrowers who meet all the basic requirements for a traditional mortgage. High FICO score, strong financial history, and access to liquid cash.
Unfortunately, not all borrowers fit this mold. In fact, now more than ever, you’re more likely to come across borrowers who have unique financial circumstances. Take, for example, gig workers. The gig economy is growing and is expected to expand even more in 2024. Borrowers who fall under this category often have trouble securing a traditional mortgage because they may have a limited history of tax returns or they may have a fluctuating monthly income.
While this poses a challenge for traditional mortgages, Non-QM loans offer more flexible financing options for these borrowers. By adding these solutions to your business, you will have the ability to better serve a more diverse set of borrowers.
Offer Flexible Underwriting
Speaking of working with more diverse borrowers – you’ll likely want to incorporate Non-QM loans to accommodate your growing client base. It’s important to have a wide range of loan options that can work for them in the event that they need flexibility – especially if you’re trying to provide a more personalized lending experience.
Say you’re currently working with two types of borrowers – a self-employed individual and a recent retiree – chances are they’re going to need different mortgage options because of their financial history and borrower profile. The former may benefit from a bank statement loan solution due to fluctuating monthly income. On the other hand, the retiree may want an asset qualifier program where they’re able to utilize assets, instead of just standard income, to qualify for funding.
LendSure distinguishes itself as a common-sense lender by offering exceptions that surpass the usual requirements associated with traditional lending standards. This differentiation enables a broader range of flexible funding options through Non-QM loans, tailored to meet the distinctive financial needs of borrowers based on their individual financial circumstances.
Adapt to Market Trends
The financial market is always shifting. One way to protect your mortgage business is by incorporating more cutting-edge programs into your product set that work – even during economic fluctuations.
Adaptability is a key factor in remaining competitive while positioning yourself as a reliable source for borrowers. Offering non-traditional lending options will not only help you stay ahead of the competition, it will position you to be a go-to source for alternative loan solutions for today’s buyers.
At LendSure, you have plenty of options to choose from for your clients. Here are five of our most popular programs:
- Through this program, the borrower can tap into the equity in their existing home by getting cash out to use as a down payment on a new home.
- Bank Statement: An alternative financing option for borrowers who can’t provide typical income docs generally required from traditional lenders. Instead, these borrowers can qualify for a mortgage by simply providing bank statements.
- Fix & Flip: Designed for real estate investors who are in the business of purchasing and renovating properties, this solution gives them the flexibility to take advantage of investment opportunities that may not be possible with their own cash on hand.
- Foreign National Loans: The perfect alternative to non-QM mortgage solutions for non-U.S citizens who want to finance a second home or an investment property in the United States.
- Debt Service Coverage Ratio (DSCR): These loans are made for investors who want to finance investment properties. They can range from single-family/2-4 unit and 5-8 unit properties. The unique differentiator about this Non-QM mortgage solution is that the loans focus on the property cash flow, so no other income documents are required.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
