Exploring Alternative Lending Solutions for Self-Employed Borrowers:: Ep 12 Mortgage Wise with Mike Wise

This episode covers the evolution of non-QM (non-qualified mortgage) loans, also referred to as non-agency loans. It provides historical context on the subprime lending crisis and how the non-QM market has since developed more robust underwriting standards focused on the borrower's ability to repay.

We explain the various methods for qualifying self-employed borrowers for non-QM loans, including using bank statements, gross receipts letters from CPAs, profit and loss statements, and debt service coverage ratio (DSCR) calculations for investment properties.

The conversation highlights how non-QM lending has become a more mainstream option, with the market share growing from less than 1% to potentially 8-10% of the overall mortgage market. This growth is attributed to higher interest rates making non-QM products more attractive and increased the competition and performance of these loan types.

Highlights:

Historical Context and Market Share (3:26)

Loan Officer Perspectives and Market Trends (5:41)

Qualifying for Non-QM Loans (14:25)

Debt Service Coverage Ratio (DSCR) (28:34)

Join Mike Wise, a seasoned mortgage expert, on "Mortgage Wise with Mike Wise," your go-to podcast for navigating the world of real estate financing. Whether you're a first-time homebuyer, seasoned investor, or industry professional, Mike covers everything you need to know. From in-depth discussions on various loan types and understanding market trends to timely updates on interest rates and their economic and political drivers, Mike keeps you informed and empowered in today's dynamic real estate landscape. Stay tuned for expert insights and practical advice that can make a difference in your financial decisions.

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This podcast is produced by Jim McCarthy and ItsYourShow.co