Non-Agency Mortgage Market Surges 34% - New Opportunities

Non-agency mortgage-backed securities jumped 34% in Q1 2026, signaling expanded lending options for California borrowers who don't fit traditional loan boxes.

The non-agency mortgage market is heating up, with $44.67 billion in securities issued during the first quarter of 2026 - a significant 34% jump from the previous quarter. This surge represents expanding opportunities for California borrowers who may not qualify for conventional financing.

The expanded-credit market led this growth with $40.6% increased activity, while prime non-agency loans (including jumbos) rose 24.3%. What's particularly noteworthy is that over one-third of these deals involved mortgages that were actually eligible for government-sponsored enterprise purchase but were packaged differently.

For California homebuyers and investors, this trend suggests lenders are becoming more flexible with non-traditional borrowing scenarios. Self-employed borrowers, investors with multiple properties, or those with unique income situations may find more options available than in recent quarters.

This market expansion often translates to competitive pricing and creative loan structures that weren't available during tighter lending periods.

Wondering if non-agency financing could work for your California property purchase or refinance? Contact our team to explore these expanded lending options and find the right fit for your unique situation.