Rising demand across borrower segments and expanding use cases point to an optimistic outlook for the Non-QM market in 2026, with the category increasingly embedded in everyday mortgage lending rather than remaining a niche execution path.
To get a clear picture of how mortgage professionals see the Non-QM market today, AD Mortgage surveyed more than 250 brokers in June 2026. This report explores the products they use most, the borrowers they serve, and the trends shaping Non-QM.
Non-QM Market Growth and Lending Trends
How has Non-QM loan volume changed over the past 3 years?
Most brokers report that Non-QM volume has increased over the past three years, showing clear momentum across broker pipelines.
46.6% report significant growth, while 27.9% report moderate growth, bringing total growth sentiment to 74.5%.
At the same time, 21.9% say volume has stayed about the same, and only 3.7% report a decline.
- Increased significantly – 46.6%
- Increased moderately – 27.9%
- Stayed about the same – 21.9%
- Decreased – 3.7%
Non-QM Mortgage Market Outlook
Forward-looking sentiment remains strongly positive. 88.4% of brokers expect Non-QM growth over the next 12–24 months, including 56.0% expecting strong growth and 32.4% expecting moderate growth.
Outlook shows minimal downside sentiment:
- Strong growth – 56%
- Moderate growth – 32.4%
- Stability 8.9%
- Moderate decline 2.7%
- Strong decline 0%
Takeaway: The outlook signals near-consensus growth expectations, with virtually no meaningful downside sentiment in the market.
The Demand Engine: Products and Borrower Profiles
What are the most popular non-QM loan products?
Non-QM usage is concentrated around a few core products. DSCR loans lead at 89.0%, followed by bank statement loans at 74.0%.
Other products are less common:
- P&L-based loans – 25.1%
- Second liens – 19.6%
- Asset-based/asset depletion loans – 16.0%
- Interest-only or alternative structures – 7.8%
- Others – 5%
DSCR and bank statement loans are the central products shaping the Non-QM market, with DSCR standing out as the strongest.
Why Brokers Choose Non-QM Loans
What causes loans to move from agency to Non-QM?
The shift from agency to Non-QM is driven overwhelmingly by documentation and qualification structure, reinforcing its role as a solution for how a loan is structured rather than how a borrower performs on credit.
The strongest trigger for moving a loan from agency execution to Non-QM is documentation limitations, cited by 79.6% of brokers.
Other factors play a much smaller role:
- Credit limitations (8.0%)
- Property-related issues (5.3%)
A separate share of responses (7.1%) reflects brokers who do not work with agency loans, indicating that Non-QM is, for some, not a conversion path but a primary execution channel
How brokers describe Non-QM in one line
We asked brokers to select a one-line slogan that best defines Non-QM today.
Notably, while structuring flexibility accounts for a relatively smaller share of stated recommendation drivers, “flexibility beyond guidelines” emerges as the most common one-line definition highlighting a gap between how Non-QM is used in practice and how it is positioned in perception.
- Flexibility beyond guidelines – 36.0%
- Income beyond tax returns – 23.6%
- Built for investors – 19.1%
- No longer niche, part of everyday structuring – 10.2%
- Designed for complex borrowers – 9.8%
- Built for certainty of closing – 1.3%
Technology and Automation in the Non-QM Market
- 6.4/10 Non-QM tech level
- 7.2/10 Industry tech level
Brokers rate the technology-driven nature of the Non-QM process at 6.4 out of 10. In comparison, the broader mortgage industry was previously rated at 7.2 in the Technology in the Mortgage Industry: 2026 Broker Survey. This suggests that Non-QM workflows still operate slightly below overall industry technology standards.
“As a Non-QM leader, we improve execution by developing new products that solve real challenges in the market. Non-QM AUS is one of the key breakthroughs in this area, and we continue to advance technology that supports brokers in their daily workflow.
