Yury Shraybman, of Innovative Mortgage Brokers, on how non-QM loans bring speed and flexibility
In Philadelphia’s mortgage market, the rise of non-QM loans has been nothing short of transformative. These products, tailored for borrowers who fall outside traditional lending criteria, have surged in popularity in both the primary residence and investment property markets.
And, according to Yury Shraybman of Innovative Mortgage Brokers, the reasons for this growth are both market-driven and structural.
“The expansion of non-QM loans across both primary residences and investment properties has emerged as one of the most significant trends in recent years,” Shraybman explained. “For primary residences, I’ve been originating more bank statement loans lately, while for investment properties, I’m increasingly turning to DSCR loans.”
Shraybman emphasized the evolution of the sector, noting both its increasing adoption and the structural improvements within the lending process.
“Over the last couple of years, these products have gained substantial momentum,” he said. “This growth has been fueled not only by borrowers becoming increasingly knowledgeable about non-QM loans, but also by the influx of new lenders entering the non-QM space.”
Reflecting on the earlier challenges in the sector, Shraybman highlighted the inefficiencies that plagued non-QM loans just a few years ago.
“About four or five years ago, closing a non-QM loan typically took about 20–30% longer compared to a conventional or FHA loan.” he said. The issue wasn’t just the paperwork but the limited number of lenders offering these programs and, often, their inadequate services. “In many cases, lenders lacked both the expertise and the proper systems, causing borrowers to be asked repeatedly for the same documentation.”
Fast forward to today, and the process is nearly unrecognizable.
“Due to the growing popularity of non-QM loans, many more lenders have entered this market,” Shraybman observed. “As a result, I now work with some great lenders who can close these loans just as quickly. In fact, it now takes me about the same amount of time to close a non-QM loan as it would for an FHA or conventional loan.”
This competitive landscape has also brought relief in the form of improved interest rates.
“The competition drives the rates,” Shraybman said, though he was quick to add that the fluctuating market has made specific trends harder to track. “On the positive side, non-QM rates haven’t grown as dramatically in recent years compared to the surge seen with conventional and FHA loans.”
For borrowers weighing the timing of their home purchases, Shraybman has a clear message: don’t wait.
“I have these conversations with my clients every day,” he said. “Today alone, I talked to a handful of clients about this. My personal opinion is not to wait—it’s never to wait. That’s because the decision isn’t just about interest rates—it’s also about rising home prices and increasing competition in the market. The difference in monthly payments between a 6% and a 7% interest rate is roughly $330—maybe a bit less. However, if you’re holding out for lower rates, you could be losing far more in potential equity as home prices continue to climb.”
Shraybman also shared his personal experience navigating Philadelphia’s competitive housing market.
“My wife and I began searching for a home in May of last year, but we didn’t secure a contract until September. The delay wasn’t due to a lack of suitable properties; it was the sheer level of competition. We made nearly 10 offers—many above the asking price—and were still consistently outbid. In several cases, other buyers presented all-cash offers, leaving us unable to compete.
“Even now, homes don’t sit on the market for long. A real estate agent friend of mine hosted an open house on Saturday, and, by Monday, the property was already under contract. While the number of offers may have declined compared to last year, there’s still plenty of competition and interest.”
For Shraybman, the rise of non-QM loans isn’t just a niche trend—it’s a signal of a broader shift in the mortgage industry. These loans, which bridge gaps left by conventional products, are becoming a lifeline for diverse borrower profiles. As he sees it, the growth of the non-QM sector represents not just an opportunity for lenders and borrowers, but a redefinition of what’s possible in the mortgage market.
“It’s all about providing options for borrowers who don’t qualify for a traditional loan but still want to buy now,” Shraybman said. “and non-QM loans are delivering exactly that.”
