Lender launches with a focus on non-QM and business purpose loans
California-based lender ARDRI has officially entered the non-qualified mortgage (non-QM) space, aiming to simplify alternative lending through digital tools.
The lender, which began operations on March 3, is focusing on third-party originators (TPOs) and borrowers who don’t qualify for traditional mortgages.
ARDRI offers a range of alternative loan programs, including Debt Service Coverage Ratio (DSCR) loans, bridge loans, and no-ratio loans for real estate investors, as well as bank statement loans, asset depletion loans, and interest-only options for individual borrowers. The products are designed for clients with non-traditional income structures, providing financing options that conventional lenders may not accommodate.
The company has emphasized the use of technology to streamline the lending process, allowing brokers to access real-time loan pricing, automated application workflows, and instant status updates. ARDRI is also promoting its broker-friendly model, stating that becoming an approved partner does not require financial disclosures or credit checks.
It has announced founder Brent Houston, a 30-year mortgage industry veteran, as its chief operations officer (COO), bringing extensive experience in mortgage banking, asset management, and portfolio lending.
"Our goal is to provide seamless, accessible alternative lending solutions tailored to meet the needs of underserved communities and real estate investors," Houston said in a Press release.
With growing demand for alternative mortgage solutions, ARDRI is entering a competitive market where digital efficiencies and expanded broker partnerships have become increasingly important.
Non-QM lenders are diversifying their portfolios, offering innovative financial products, and leveraging advanced technologies and data analytics to enhance risk assessment and customer experience.
In 2024, non-QM issuance, including debt-service coverage ratio (DSCR) loans for investor properties, accounted for just over 30% of non-agency issuance, with projections suggesting it will comprise slightly less than 30% in 2025.
Read next: Brokers, lenders are saying non-QM is set to soar in 2025
The performance of non-QM loans has also improved, with borrower credit quality now comparable to that of qualified mortgages. The average credit score for non-QM borrowers in 2024 was 776, close to the 781 average for conventional QM loans. Additionally, riskier features such as negative amortization and balloon payments have been eliminated, contributing to the sector's stability.
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