For many high-net-worth buyers, building a diverse and profitable real estate portfolio is a key component of their long-term wealth strategy. However, traditional mortgage options don’t always align with the complex financial profiles, unique income streams, and aggressive investment timelines these buyers tend to have. We know because we’ve been working with business owners, investors, and other successful borrowers for years, finding financing solutions tailored to them.
More and more investors are turning to non-QM loans (Non-Qualified Mortgages) to grow their portfolios faster and with greater flexibility. Here’s why this shift is happening and what you need to know if you’re considering using a non-QM loan to expand your real estate investments.
What are Non-QM Loans?
Non-QM loans are mortgage products that don’t meet the strict guidelines of traditional, government-backed loans. They are designed for borrowers who may not fit into the conventional income or documentation boxes but are still financially capable of responsibly managing a mortgage.
In our experience, this often includes:
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Self-employed entrepreneurs with variable income
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Investors with significant asset reserves but limited taxable income
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Buyers using rental income as a primary qualification source
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Global buyers with foreign assets or income streams
A non-QM loan might be a bank statement loan, asset-based loan, or jumbo loan, for example. There are many different options when we get outside of the guidelines of traditional, government-backed loans.
Why High-Net Worth Borrowers Prefer Non-QM Loans
These loan options provide the solution that many of our successful, high-net worth clients need. Here are some of the reasons they are the better fit.
Flexible Income Documentation
Many high-net-worth individuals don’t earn a traditional W-2 salary. They may have income from investments, multiple businesses, or international sources. Non-QM lenders can use bank statements, asset depletion, or rental income to qualify buyers, which opens the door for those who wouldn’t meet the strict debt-to-income ratios of conventional loans.
Opportunities to Expand Your Portfolio Efficiently
Non-QM loans often allow for the purchase of multiple properties simultaneously, including investment properties, vacation homes, and short-term rentals. For buyers looking to build a portfolio quickly, this is a significant advantage over more restrictive lending programs that cap the number of financed properties or have a slower approval and escrow process.
Customized Terms and Faster Turnaround
Because we’re not tied down to the guidelines of government-backed loans, we can customize terms to suit your goals and needs. We offer more personalized underwriting, which can lead to faster approvals and loan closings. You know this is especially crucial in competitive markets. Loan terms can also be tailored, including interest-only options, alternative amortization schedules, and flexible down payment structures that fit your investment goals.
Financing for Unique Properties
Luxury and investment properties sometimes fall outside the conventional lending box due to their price point, rental structure, or mixed-use zoning. Our non-QM loans can accommodate non-traditional and high-value properties that traditional lenders might avoid.
Asset-Based Approval
Some of our high-net-worth buyers prefer asset-based mortgages that qualify them based on their liquid assets rather than their income. This is particularly useful for retirees, global buyers, or those who keep wealth in non-traditional forms.
Our resident lending expert Jackie Barikhan says, “If you’re a high-net-worth buyer aiming to build or scale a real estate portfolio, non-QM loans may be the tool that helps you move faster and smarter. We offer creative, tailored solutions that meet the realities of complex financial lives.”
If you have questions about the right financing for your goals or how to apply for a loan, we are here to help. Contact us today to get started!