The American workforce is shifting towards freelancing, with projections indicating that by 2027, over 86.5 million Americans will be freelancing. This shift is impacting the homebuying landscape, prompting brokers to adapt their loan products for gig economy workers. Interestingly, small investors are increasingly becoming the majority among buyer investors, while large investors are declining. In 2024, real estate investor share rose to 13% of all home purchases. Brokers need to embrace non-QM lending to cater to this evolving market and address misconceptions about the risks associated with these loans.
Today’s non-QM loans are a far cry from the risky products of the pre-2008 era. All non-QM loans are underwritten with a focus on the borrower’s capacity to repay.
The share of small investors among buyer investors is growing, while large investor activity declines. This trend began in 2022 and has persisted through the latest data.
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