The New Rules In Non-QM As Millennials Jump Into The Homebuyers Market

Some millennials are bucking the stereotype surrounding younger homebuyers and embracing homeownership. While millennials have been denounced by some critics for straying away from homeownership, the non-QM mortgage market has seen millennials eager to buy homes that have been out of reach for their generation. As the experiential generation, this is indeed a surprising new trend.

As the generation has grown older and incomes have risen through work and promotions, millennials are showing signs of valuing many of the things valued by previous generations. Their lifestyle preferences are indeed to return to the areas where they grew up and nestle in, and to move to the outskirts of metropolitan areas, causing a wave of new suburban homebuying activity.

The FHFA announced Tuesday that it is increasing the conforming loan limit for Fannie and Freddie mortgages in nearly every part of the U.S, all great news for the real estate market and for millennials who are struggling to afford a home.

According the FHFA, the conforming loan limits will rise from this year’s total of $453,100 to $484,350 for 2019. That’s an increase of 6.9% from this year’s loan limit to next year’s.

A changing market

Tom Hutchens, EVP of production at Angel Oak, recently joined a discussion with The National Real Estate Post to talk about where the market is today and what changes need to be made for 2019 and non-QM. Many deals are lost because people do not understand the products or know they exist, he said. A self-employed borrower earning $200k annually with excellent credit should qualify for a loan. The problem is that tax documents do not prove their ability to repay the loan due to write-offs. Bank statements are required to prove the ability to repay. Another example is when a borrower who had a recent credit event and is ready to purchase a home again but is denied a traditional mortgage. Tom goes over a situation where a borrower was able to close on a $1.3 million loan using one of our loan products.

Watch the webinar and find out the tools and resources you need to grow your business further.

Angel Oak Mortgage Solutions Can Help

At Angel Oak Mortgage Solutions, we offer alternative mortgage lending wholesale programs to help non-prime borrowers who may not meet government agency financing guidelines, and assist in expanding offerings across the wholesale correspondent lending market. We tailor correspondent packages to directly support correspondent lenders interested in our top non-prime mortgage loans, and believe correspondent lenders are an integral part of the wholesale alternative mortgage lending process.

Angel Oak Mortgage Solutions stands out by being the #1 non-QM lender in the nation. With our guidance, you’ll be able to expand your product offering and grow your business with our tailored programs. We offer a number of alternative mortgage lending programs geared toward correspondent mortgage lenders.

Non-QM mortgage financing is growing, and many wholesale mortgage brokers and correspondent lenders are taking notice. Among correspondent lenders, of course, non-QM offers a great avenue for growing business origination volume across mortgage lending channels and providing opportunities for clients across a variety of risk profiles.

Non-QM correspondent mortgage lending offers considerable opportunity for correspondent lenders who are not yet partnered with an alternative mortgage financing firm. Those looking to grow their business should consider the unique opportunities non-QM mortgage financing programs can provide correspondent lenders. 

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Angel Oak Companies is an industry leader in delivering innovative mortgage credit solutions. Through our integrated platform, we deliver solutions across asset management, mortgage lending and capital markets.

Angel Oak Mortgage Solutions offers a breadth of alternative lending products to allow our clients to grow their business and better serve their customers. We re-connect qualified home buyers with the investor community to create a win/win/win for the borrower, originator and investor. As a highly entrepreneurial organization, we are able to quickly adapt to the needs of our clients and embrace a strong service-based culture.

Angel Oak Mortgage Solutions currently offers alternative correspondent mortgage lending services across Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, Oklahoma, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

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