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2 clusters · 9 sources · 5 days · First seen 15 days ago · Last updated 11 days ago

US non-QM mortgage lending growth

Overview

The United States mortgage market is seeing a rise in non-Qualified Mortgage (non-QM) lending to accommodate borrowers who do not fit traditional underwriting models. By July 2026, non-QM lending surpassed 10% of monthly rate-lock volume, following a period in 2025 where it accounted for approximately $239 billion, or 10% of total mortgage originations.

This growth is driven by a documentation gap in conventional underwriting. Traditional lenders often calculate qualifying income after business deductions are applied, which can make high-earning self-employed individuals, real estate investors, and retirees appear unable to afford homes despite having sufficient cash flow.

To address these needs, specialized loan programs are emerging. These include bank statement loans, which allow business owners to verify income through bank deposits rather than tax returns, and Debt Service Coverage Ratio (DSCR) loans, which qualify loans based on a property’s rental income potential. Independent mortgage companies are increasingly utilizing these non-traditional financing strategies to serve diverse financial profiles.

Entities

Consumer Financial Protection Bureau · Griffin Funding · Optimal Blue · Polygon Research · Urban Institute

Timeline

11 days ago

[BUSINESS] 2 sources
Mortgage lending evolves to serve non-traditional borrowers
Mortgage lending is shifting toward non-traditional borrowers, including the self-employed and real estate investors, through specialized products like non-QM and DSCR loans.
15 days ago

[BUSINESS] 7 sources
US non-QM mortgages reach 10% of total originations
Non-QM lending now accounts for roughly 10% of U.S. mortgage originations, as self-employed borrowers increasingly turn to private-market documentation to bypass traditional underwriting barriers.

Sources

digitalmarketreports.com · finance-monthly.com · findlove.com · kesq.com · keyt.com · kion546.com · krdo.com · kvia.com · wrenews.com