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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 36 December 2025 F E A T U R E S T O R Y THE FUTURE OF NON-QM LENDING: TRENDS AND OPPORTUNITIES Non-QM Loans have evolved from a niche product to an important pathway for homeownership in an evolving market. B y D Y L A N M O N T A N A P icture this: a successful restau- rant owner with $2 million in annual revenue walks into your office seeking a mortgage. Her tax return shows $45,000 in income after business deductions. In conventional lending, she was declined. In non-Qual- ified (non-QM) lending, she would be approved for her dream home in a matter of days. This scenario routinely plays out across America, and it's reshaping the entire mortgage industry. The numbers tell a compelling story. With 16.75 million self-employed Amer- icans and investment property owner- ship at record highs, non-QM lending has evolved from a niche product into an essential pathway to homeowner- ship. For mortgage brokers, mastering non-QM isn't just an opportunity—it's becoming a necessity for survival in an evolving market. The Investment Property Gold Rush R eal estate investing has exploded beyond traditional landlords into a mainstream wealth-building strategy. A Q1 2025 report by real estate data provid- er BatchData shows that investors now account for 27% of all home purchases, with some markets seeing rates above 30%. But here's what's truly revolu- tionary: these aren't just cash buyers or institutional investors anymore. Consider the software engineer who owns three Airbnb properties in moun- tain towns, generating $15,000 monthly but showing minimal W-2 income. Or the retired couple using their rental portfolio to fund their lifestyle. Where traditional lending sees risk, non-QM lending sees opportunity. DSCR loans evaluate these properties based on their actual cash flow: if a property generates $3,000 in monthly rent against a $2,000 mortgage payment, it qualifies. It's that straightforward. The short-term rental revolution has created an entirely new borrower catego- ry. These properties, often generating 2-3 times the income of traditional rentals, were virtually unfundable through conventional channels just five years ago. Today, specialized DSCR programs for vacation rentals offer up to 70% financing at competitive rates, complete with com- pliance verification to ensure the property can legally operate as a short-term rental. The five- to eight-unit property seg- ment represents the next frontier. These properties—too large for conventional residential loans, too small for most com- mercial lenders—have found their sweet spot in non-QM. With loan amounts up to $2.5 million and the ability to qualify based on rental income alone, investors can scale their portfolios efficiently. Tech Innovation Takes Qualification From Days to Hours R emember when alternative income verification meant weeks of manual calculations and documentation gym- nastics? Those days are over. According to Freddie Mac, 81% of lenders are ag- gressively or very aggressively digitizing their mortgage processes, with advanced technology adoption rising sharply. Today's bank statement programs use sophisticated algorithms to analyze cash flow patterns instantly. Instead D Y L A N M O N T A N A serves as the EVP of Capital Markets at Logan Finance, where he has been a driving force since joining in May 2021. With a strong background in secondary markets and due diligence, Montana previously served as SVP of Due Diligence at Sprout Mortgage. He holds a B.S. in finance from the State University of New York at Oswego. At Logan, Montana has been instrumental in innovating capital markets strategies and secondary execution, helping guide the company to recognition as a Top 5 Non-QM lender. Known for his strategic mindset and ability to translate market complexities into opportunity, Dylan plays a key role in fueling Logan's continued growth and industry leadership. Outside the office, Dylan enjoys spending quality time with his family and is an avid golfer.