AD Mortgage Unveils Major Non-QM Enhancements

Today’s housing market requires flexibility and speed just as much as strong pricing – especially in the Non-QM space. Having a lending partner that evolves with the market isn’t just helpful – it’s a competitive advantage.   

With that in mind, AD Mortgage is introducing key enhancements to our Non-QM lineup: improved pricing across all PPP structures and simplified guideline requirements that make approvals easier and faster. These changes reflect our ongoing commitment to support our partners with solutions built around real borrower behavior – not legacy lending constraints.  

Improved Pricing Across All PPP Options

We’ve updated LLPA adjustments across all Prepayment Penalty Period (PPP) tiers — making Non-QM pricing more competitive and more flexible than before. Whether a borrower is seeking a long-term mortgage or aims to refinance in the near future, our partners now have more room to structure a Non-QM loan in a way that is synchronized with the borrower’s goals, not just eligibility.  

One outstanding element of this update is the 6-month PPP option – something AD Mortgage offers that most other lenders don’t. This structure is especially advantageous for borrowers planning a strategic refinance, portfolio reposition, or short-term investment exit.  

How This Benefits Our Partners  

Instead of forcing one-size-fits-all terms, our partners are now able to align pricing with borrower timelines – giving them more choice and more confidence during the quoting process.  

AD Mortgage’s Non-QM enhancements are, as always, centered on improving the borrower, broker, and lender team experience including:  

• Lower LLPAs across every PPP structure  
• Better rate positioning in competitive quote scenarios  
• More flexibility for short-term and opportunistic investor strategies  
• Improved borrower experience with clearer pricing paths  

Additionally, guideline enhancements make things simpler, faster, and are built for real borrowers. Along with pricing improvements, AD Mortgage has made two important policy updates that streamline qualification and remove common roadblocks in Non-QM underwriting.  

Cash-Out Refinance is Now Based on Appraisal Value  

The cash-out experience just became simpler. Borrowers are no longer required to provide documentation proving renovation costs, receipts, or construction details.  

Instead, qualification now relies primarily on the property’s current appraised value – with a modest CLTV adjustment of 5% from the standard eligibility matrix.  

The impact is significant and features:  

• Fewer required documents  
• Faster submissions  
• More approvals for real-world renovation scenarios  
• Better outcomes for homes improved gradually or without formal contractor records  

A quick example illustrates the difference:  

A borrower purchased a home for $500,000. After upgrades and market appreciation, it now appraises at $650,000. Under the updated guidelines, the refinance qualification is based on the $650,000 value, with confirmation of completed renovations documented through the appraisal – not through receipts or invoices.   

The bottom line is that value, not documentation complexity, determines eligibility.  

Marketable Securities Can Remain Untouched  

Another commonly requested scenario: borrowers with significant liquid investment accounts who prefer not to cash out.  

Under the new guidelines, if the securities account balance is at least 20% higher than the required funds for down payment and closing, liquidation is no longer required.  

Benefits include:

• Reduced friction for high-net-worth and financially strategic borrowers  
• Stronger appeal for borrowers who choose leverage instead of liquidation  
• A smoother path to approval for borrowers using diversified portfolios  
• Borrowers can now keep their investments where they belong – while still using them to strengthen a loan file.  

What These Enhancements Mean for Our Partners  

These updates aren’t just incremental adjustments, rather they strengthen how Non-QM can be used in real business scenarios.  

Partners gain:  

• Better rate competitiveness when quoting  
• Fewer conditions and simpler underwriting  
• Expanded borrower eligibility across investor and self-employed segments  
• More approval opportunities for refinances, multi-property portfolios, and complex income borrowers  

In a market where speed and flexibility influence conversion, these changes give our partners the tools to win – and win earlier in the conversation.  

AD Mortgage doesn’t force Non-QM borrowers to fit into rigid lending boxes, and these enhancements better reflect how today’s clients earn, invest, refinance, and build property wealth.  

Ready to Put These Enhancements to Work?

Whether you’re structuring a new loan or revisiting a borrower who was previously waiting on rates or qualifications, now is the right time to reevaluate Non-QM scenarios. With better pricing, simpler guidelines, and more borrower choice, these enhancements open doors to approvals that may not have been possible before.  

Submit your next Non-QM loan with AD Mortgage – and provide even more options for your clients.