What's the key to finding success in the non-QM space?

Here's what brokers and lenders need to know about thriving in an ever-growing sector of the US mortgage market

What's the key to finding success in the non-QM space?

Non-qualified mortgage (non-QM) products are surging in popularity, now accounting for about 5% of all mortgage originations and projected to grow even further in the years ahead. But amid the rapid expansion, industry leaders caution that volume alone is no longer the benchmark for success.  

"What you should be tracking is the number of deals that couldn't be done any other way," Fif Ghobadian, a seasoned executive in the non-QM space, told Mortgage Professional America. "Really quantify the relief factor. How many people have we saved, financially, by reducing their expenses or enabling them to buy?"  

Focus on borrower problems, not product specs  

For brokers navigating the complex world of non-QM, Ghobadian emphasizes a needs-first approach.  

"You don't speak about the programs. Just speak to the problems we can solve," he said. "The ability to use deposits into your bank account to calculate income. The ability to go to 55% debt-to-income ratio. The ability to exclude the cost of your departing residence."  

This problem-led framework is particularly useful for self-employed and investor clients, who often find the mortgage qualification process opaque. According to Ghobadian, it doesn’t have to be a "black box" if brokers clearly identify and communicate the borrower’s pain points upfront.  

Managing rising risk with smarter communication  

The call for clarity comes at a crucial moment. The 60+ day delinquency rate for non-QM loans hit 3.6% in March 2025, according to RiskSpan and other portfolio analytics firms. That's up sharply from a post-COVID low near 1%. While some of that uptick reflects broader economic stress, it underscores the stakes of proper borrower fit.  

"I don't think it's non-QM specific," said Ghobadian of the delinquency trend. "It's generally economic. But what you can do is communicate the options that exist to help people alleviate financial stress" through refinancing, longer terms, or restructuring debt.  

Serving the gig economy with tailored advice  

With over 70 million Americans now in the gig economy - many of whom rely on irregular income for essentials, according to Pew Research and GigEconomyData.org—non-QM has become a crucial path to homeownership. Yet the complexity of these products means brokers must step up their advisory role.  

"If you identify the client's issue and communicate what we need to get them there, it shouldn't really be like a black box," Ghobadian said. "It's all about communication and clarity."  

Looking ahead: Clarity as a competitive edge  

As non-QM lending continues its ascent, broker success will depend on more than just closing deals. It will be measured by how well they guide clients through complex decisions, demystify product structures, and ensure lasting fit.  

"You could see this big weight lifting off his shoulders," Ghobadian recalled of a client who learned he could buy a home without selling his current one. "Just the type of relief we can provide—that’s the success metric we should be tracking."