.png)
The Market Is Shifting Toward Flexibility
The U.S. mortgage industry is entering a pivotal moment. Agency loan volumes have slowed due to tighter qualification standards, shifting borrower profiles, and elevated consumer debt. Yet amid the slowdown, one segment is accelerating. Non-qualified mortgage lending (non-QM) has become one of the most resilient and dynamic sectors in 2025.
A recent Mortgage Professional America episode highlighted how non-QM has evolved from niche to necessity. According to industry experts, originations are expected to exceed $150 billion this year, driven by borrowers who no longer fit the traditional agency mold.
At Anchor Loans, we view this shift as part of a broader transformation. Borrowers and investors want financing that matches therealities of today’s economy: flexible, efficient, and relationship-based.That’s why our sister company, Deephaven Mortgage, is emerging as a national leader in non-QM lending, helping brokers and borrowers access capital through smarter, more adaptive programs.
What Non-QM Really Means
Non-QM lending serves creditworthy borrowers who fall outside conventional underwriting standards yet demonstrate the ability to repay responsibly. These include self-employed professionals with variable income, real estate investorsqualifying based on property cash flow, and homeowners seeking to access equitywithout refinancing their low-rate first mortgage.
As the MPA Talk guests explained, the growth of self-employment and the gig economy has reshaped the borrower landscape. Many financially sound individualsnow have multiple income sources or business ownership structures that do notalign neatly with W-2 requirements. Non-QM programs bridge that gap, offering responsible access to credit while maintaining rigorous underwriting.
According to Scotsman Guide, non-QM currently represents around5% of all originations but is expected to grow significantly in the next two years. The takeaway is clear: non-QM lending is no longer an alternative—it’s essential.
Key Drivers Behind Non-QM Growth
1. Agency Lending Decline
As conventional and government-backed lending cools, loan officers and brokers are diversifying into non-QM to maintain volume. The MPA Talk discussion made it clear: originators who have yet to embrace non-QM are “behind the times.”
2. Borrower Diversity
Today’s economy is entrepreneurial. From gig workers and 1099 contractors to small business owners, borrowers are redefining how income is earned and documented. Non-QM programs recognize that success doesn’t always fit on a pay stub.
3. Unlocking Home Equity
Homeowners are sitting on record equity while managing record consumer debt. Many prefer second-lienor HELOC solutions that unlock capital without disturbing their low-rate first mortgages. These options are among the fastest-growing segments of non-QMl ending.
4. Investor Demand for Flexibility
Debt Service Coverage Ratio (DSCR) loans, which qualify borrowers based on property rental income rather than personal income, are gaining traction. They give investors the freedom to scale portfolios efficiently without traditional barriers.
Industry data supports this trajectory. National Mortgage Professional reported that non-conforming loans reached nearly 17% of total originations in mid-2025. Meanwhile, Baker Tilly found that investor appetite for non-QM assets is deepening secondary-market liquidity—helping stabilize growtheven amid rate volatility.
Deephaven Mortgage: Expanding Access to Smarter Lending
Deephaven Mortgage was founded to serve borrowers who fall just outside agency guidelines but deserve fair access to mortgage credit.Built on experience, innovation, and transparency, Deephaven has become atrusted partner for brokers and lenders nationwide.
Expanded-Prime Program
For borrowers who narrowly miss agency approval, Deephaven’s Expanded-Prime program offers up to 90% LTV, loan amounts up to $3.5 million, and credit scores as low as 660. Flexible documentation options—full doc, one-yearP&L, or bank statements—make qualification accessible for high-quality borrowers with unique financials.
DSCR Investor Loans
Designed for real estate investors, DSCR loans qualify based on property cash flow rather than personal income. With loan amounts up to $2.5 million and LTVs up to 80%, these programs enable portfolio growth without the traditional documentation hurdles.
Equity Advantage Second-Lien Program
Deephaven’s Equity Advantage product helps homeowners access equity while keeping their low-rate first mortgage intact. Borrowers can secure up to 90% combined LTV on primary residences and loan amounts up to $750,000, using funds for renovations, debt consolidation, or business growth.
Bank Statement and 1099 Programs
Forself-employed and contract workers, Deephaven’s income flexibility programs provide a responsible alternative to agency underwriting, reflecting howAmericans earn today.
As HousingWire recently noted, these types of programs are fueling a wave of opportunity for borrowers once left out oftraditional lending pipelines.
The Anchor–Deephaven Connection
Anchor Loans and Deephaven Mortgage are both part of Pretium, one of the largest investors in single-family housing nationwide. Pretium’s portfolio of more than 100,000 homes underscores the strength and stability behind both organizations.
Anchor Loans has funded over $19 billion in real estate projects across the country, specializing in construction, fix-and-flip, and bridge financing. Ourfocus is speed, reliability, and partnership. Deephaven complements this byoffering long-term mortgage solutions that help borrowers transition fromshort-term investment or construction financing into permanent, sustainablefunding.
Together, we provide a full-spectrum lending ecosystem—from acquisition and construction to long-term financing—empowering builders, developers, andinvestors to grow confidently through every stage of a project.
How Non-QM Lending Fuels Housing Growth
Non-QMlending plays a vital role in expanding housing supply, especially as thenation faces a persistent housing shortage. Many smaller builders and developers depend on flexible capital to complete projects, while investors useDSCR and bridge loans to revitalize older properties. Homeowners leverage second-lien and cash-out products to renovate existing homes, improving bothquality and availability.
Theseactivities stimulate local economies and make housing more accessible. Deephaven’s mortgage programs, paired with Anchor Loans’ quick-drawconstruction financing, help deliver new and improved homes faster. Accordingto Freddie Mac’s 2024 Housing Supply Update, the U.S. remains short by millions of units, underscoring the importance ofinnovative capital solutions like these.
The Power of Education and Partnership
Both Anchor Loans and Deephaven Mortgage believe that education is the foundation of long-term success. For brokers and investors new to non-QM, thefirst step is choosing an experienced lending partner who can guide themthrough product nuances. The second is action—closing a non-QM loan to gainfirsthand experience. Once confident, originators can expand offerings andmarket themselves as non-QM specialists.
Deephaven’s account executives provide dedicated support, training, and resources to help brokers build sustainable pipelines. Anchor Loans mirrors this approach forreal estate investors, ensuring each project benefits from clear communication,market insights, and expert partnership. Together, we make education andcollaboration central to the lending process.
The Bottom Line
The non-QM market has reached a turning point. As MPA Talk experts noted, “If you are an originator in 2025 and you are not familiar with non-QM, you arebehind the times.” Non-QM is not a side option—it is the future of flexible,borrower-centered finance.
Deephaven Mortgage is leading that evolution by expanding access to responsible, innovative programs that meet the needs oftoday’s borrowers. Anchor Loans is proud to work alongside Deephaven, helping real estate investors, builders, and developers move faster, thinkbigger, and build stronger.
Together, we’re creating opportunity across the housing market—one borrower, one project, and one partnership at a time.
