Why Brokers Can’t Afford to Ignore Non-QM in 2025

The mortgage market is shifting, and for brokers, that shift is creating both challenges and opportunities.

This summer, we saw non-qualified mortgages (non-QM) hit a record 8% of total rate lock volume. That number may sound like just another data point, but here’s what it really means: more and more borrowers are looking for financing options that fall outside the traditional agency box.

At the same time, overall volume slowed. Total rate locks dipped 3% from June to July, with purchase activity falling nearly 5%. Affordability pressures continue to weigh heavily on buyers. Yet not all the news is grim: refinances, long considered dormant, are starting to stir again. Cash-out refis climbed 5%, and rate-and-term refis jumped 7% in the same month.

And then there’s the composition of the market itself. A year ago, the majority of loans were comfortably GSE-eligible. Today, that share has shrunk to just over half (52.2%), while nonconforming originations, including jumbo and non-QM, have grown to nearly 17%.

Phrased differently: one in six loans is now happening outside the agency framework.

Non-QM: The Real Story Behind the Numbers

Behind these shifts is a borrower story brokers know well. It’s the investor looking to expand their rental portfolio with a DSCR loan. The self-employed business owner with strong cash flow but no W-2s to show for it. The gig worker or independent contractor who earns more than enough but doesn’t fit the agency mold. The foreign national buying property in the U.S.

These borrowers aren’t “unqualified.” They’re underserved, and non-QM is how we serve them.

With tools like bank statement programs, 1099 income verification, and DSCR loans, brokers can deliver financing solutions that traditional channels simply can’t. And with affordability keeping more clients outside agency guidelines, demand for non-QM isn’t just rising, it’s accelerating.

Why Now Matters

For brokers, the lesson is clear: non-QM is no longer a niche. It’s a core growth driver. Brokers who embrace it today position themselves to:

• Capture clients others turn away.
• Protect their pipeline when purchase deals slow.
• Build long-term referral networks with investors, builders, and entrepreneurs who will come back again and again.
  
  

Every deal you pass on is a deal another broker will close. Non-QM is the competitive edge that keeps your pipeline alive and thriving.

How Dominion Financial Wholesale Helps You Win

At Dominion Financial Wholesale, we’ve built our non-QM portfolio to help brokers not just participate in this shift, but lead it:

• Investor Premier DSCR Loans – Flagship investor solutions with our DSCR Price-Beat Guarantee.
• Prestige Alternative Income Loans – Bank statement and 1099 programs designed for self-employed borrowers.
• Speed & Certainty – Fast turn times, expert support, 24/7 access to Donna (our broker AI assistant), optional loan processing, and true white-glove service.
• Boutique Service, Backed by Experience – A team with decades of lending expertise, dedicated to helping brokers win more deals.
  
  

We’re not just providing products. We’re giving brokers the edge they need to stand out in a changing market.

The Bottom Line

The record-breaking growth in non-QM isn’t random. It’s the market telling us where demand is headed. Brokers who adapt, who add non-QM to their core offerings now, won’t just weather today’s market conditions. They’ll thrive in them.

At Dominion Financial Wholesale, our mission is simple: to help brokers win. Non-QM is how we’ll do it together.