3 Reasons Why Focusing More on Non-QM is Right For You
Have you taken advantage of Non-QM financing to grow your business? There is a large segment of the mortgage market that either doesn’t qualify for conventional loans, or are not best served by them.
If you’re not sure that a focus on Non-QM lending is right for you, here are three reasons to take another look:
Work with clients who are likely to have repeat business.
Non-QM loans can be a great fit for borrowers who often conduct more purchase and refinance transactions than the typical homeowner. Real estate investors who flip properties may have several projects going at a time, and those who hold and rent could be looking to add to their portfolio. Business owners or self employed individuals with non-traditional income are likely to purchase higher value properties, and potentially vacation homes as well as their businesses grow.
In addition to repeat transactions from individual clients, when you serve these borrowers well the referral business from word of mouth recommendations can be invaluable.
Position yourself as an expert.
Even if a borrower qualifies for a conventional or government loan, there may be a Non-QM option that makes more sense for their scenario. Taking advantage of a lower down payment or less restrictive reserve requirement could free up cash for other investments or purposes. By offering multiple product choices you show your expertise, and that you are a true partner, looking out for your clients’ best interest.
Offer lending solutions, not loan denials.
The flexible and adaptable nature of Non-QM loans allows you to gain an approval in scenarios where conventional financing simply isn’t an option. Tough to document income, high loan amounts, non owner occupied status, and high LTVs don’t have to be deal breakers. The ability to get the job done impresses both your clients and their real estate agents and other industry professionals.
Would you like additional information on the Simple Access® suite of Non-QM products from Luxury Mortgage Wholesale? We’re just a phone call or email away and would love to discuss any program or a scenario you may have for one of your borrowers.