SAN JOSE, California, May 8, 2023 – Existing home sales surged to a fifteen-year high in 2021, an 8.5% increase from 2020, with 6.12 million homes sold. However, primarily due to a rise in interest rates, only 5.95 million homes were sold in 2022.

Conventional mortgages are residential loans comprising 82% of the mortgage market in the United States. Despite being the most common type of mortgage, a conventional loan is difficult to obtain because borrowers need to qualify regarding many factors, which include having a minimum credit score of around 620, a debt-to-income ratio of no more than 43%, and a down payment of at least 20%.

SAN JOSE, CALIFORNIA, USA, May 9, 2023 – SAN JOSE, California, May 5, 2023 – Every year, approximately one in fifteen or about 400,000 American borrowers encounter problems while obtaining home mortgages. This is because many of them are deemed outcasts due to low credit scores, heavy debt, or being a part of the gig economy (i.e., non-salaried or self-employed workers). Hence, such borrowers use alternative financing and obtain unconventional mortgage loans. Lenders of such loans require them to only provide cash flow and asset statements, bank statements, and a few tax forms. With a rise in low-income and gig economy borrowers and with the rest of the mortgage industry shrinking, the focus has recently intensified on the unconventional mortgage market.