Giving originators more tools to capture borrowers

Although the non-QM market grew substantially last year, with the Atlanta-based firm originating more than $3.9 billion, delayed financing is another marketing tool within the non-QM space that could help brokers, he stressed.

The product essentially allows a borrower to make a cash offer for a property by applying for the loan after closing. “Let’s say it’s a $500,000 offer, they actually have that cash or access to it, even if they get short-term financing. They can pay the $500,000 and then apply and get that $400,000 loan from us 30 days later.”

He pointed out that although delayed financing had always been on the table “it’s never been needed like it is today”.

He added: “Delayed financing is a big opportunity right now because of the market. The bottom line is that people making an offer with a loan contingency are having a really hard time winning their offers because sellers know that if it’s contingent on the loan happening and the loan doesn’t happen, then then they’re out. That’s why sellers like cash offers.”