Non-QM Loans Could Help Wildfire Victims Secure a New Home

Over the past several years, market experts have had to learn how to expect the unexpected, and that motto couldn’t hold truer than in the early months of 2025. Market experts are closely watching the disastrous Los Angeles fires and expect the natural disaster to have major impacts on the market in the coming year.

For one, natural disasters that cause destruction inevitably lead to declines in credit scores on a widespread scale. Research consistently shows that the most impacted survivors are often the ones who had a lower credit scores prior to the disaster. Disasters tend to cause more survivors to fall into debt collection, foreclosure, mortgage delinquency, and more.

Survivors of fires do usually have some recourse in the form of homeowners insurance and support and recovery funds. When it comes to the LA fires, private insurance companies will have to determine whether homeowners are covered based on the specific policies they purchased. Nonprofits can also provide aid through temporary shelter, food, and first aid.

Unfortunately, homeowners who wind up losing property can experience long-term negative financial impacts. If that happens to you, then you’ll want to know more about your options – like taking out a non-traditional loan to help fund a new home purchase. Sadly, the destroyed property could prove to be a hindrance when it comes to attempting to take out a new loan. Traditional lenders may see you as too risky to offer a loan to. Without alternative options, you could be stuck with a destroyed property and few options for moving forward.

Outside of the events in California, financial markets are showing a more positive outlook than they have in recent years. December’s payrolls for 2024 showed the unemployment rate dropping to around 4.1% and wages increasing by about 3.9%. U.S. debt levels also appear to be declining, with more consumers paying off their credit card balances and becoming more cautious overall with debt.

Non-Conventional Home Loans Customized to Fit Your Needs

Do you have plans on obtaining a new home in 2025? Are you currently facing non-traditional financial situations that you think might limit your ability to take out an average home loan?

Non-traditional home loans offer conventional solutions to hopeful homeowners with unique needs. If you’re struggling with a low credit score as a result of losing your property, then a non-QM lender can help you. A Non-QM lender can also help with situations like self-employed individuals who don’t have consistent streams of income or individuals who are foreign nationals.

With Non-QM home loans, you won’t have to provide excessive documentation, have a picture-perfect financial past, or secure a massive down payment. We offer realistic home loan options for real individuals who simply want to meet their homeownership goals outside of the traditional path.

Check out our loan requirements now to determine if our Non-QM home loan options are a good choice for you. If you’d prefer, then you can also contact our team at (800) 413-0240 to discuss your options one-on-one with one of our best agents.