The adult care home niche is now the cash cow of non-agency mortgage programs in the eyes of Ken Fox, vice president and regional sales manager at Acra Lending.
“Besides being lucrative, there are many other advantages,” Fox said during a non-QM webinar hosted by Mortgage Professional America. “They’re not as rate-sensitive because they’re looking at the big picture. Many of these borrowers have great credit, and great asset profiles. And what’s also nice is once they purchase one, they want to expand their portfolio over time so you can get multiple purchases and refinances for each client. And if that’s not enough, they’re like a hidden gem. Not many mortgage brokers focus on these clients.”
Over the years, competition in the mortgage space has increased dramatically, and there’s never been a better time for brokers to look into non-agency loan programs. While it may be an unconventional path, entering the adult care niche is one way to stand out from the crowd, according to Fox.