A borrower walks into a bank. She’s been self-employed for eight years, grosses $400,000 annually, and has $200,000 in the bank. The loan officer takes one look at her tax returns—heavy with write-offs—and shakes his head. Denied. This scene plays out thousands of times a month across the country. It’s also the exact scenario that non-QM lenders like Champions Funding were built to solve.
Champions Funding is a wholesale mortgage lender that focuses exclusively on non-qualified mortgage (non-QM) products. That means they don’t sell loans to Fannie Mae or Freddie Mac; instead, they underwrite to their own guidelines, which are far more flexible for borrowers with complex income situations.
What Champions Funding Actually Does
Champions Funding isn’t a household name like Quicken Loans or Wells Fargo. It’s a business-to-business lender. You won’t find them advertising during the Super Bowl. Instead, they work behind the scenes with independent mortgage brokers. If you’re a broker, you can submit loans to Champions Funding through their wholesale portal. If you’re a borrower, you’ll likely encounter them through your broker.
The non-agency market has been evolving rapidly, with industry watchers debating everything from cybersecurity to AI tools and servicing rights. As noted in this roundup of non-agency news, the landscape is shifting, and lenders like Champions Funding are carving out a niche by serving borrowers who fall outside the agency box.
The Product Lineup: Non-QM Loans Explained
Champions Funding offers a range of products designed to accommodate borrowers who don’t fit the standard agency mold. Here are the main ones.
Bank Statement Loans for Self-Employed Borrowers
Bank statement loans are the flagship product for many non-QM lenders, and Champions Funding is no exception. Instead of requiring tax returns, they let self-employed borrowers qualify using 12 or 24 months of personal or business bank statements. The lender calculates an average monthly income from deposits, often applying an expense factor to account for business costs. A consultant who writes off a lot of expenses but deposits $20,000 a month into her business account can qualify for a loan that a bank would deny.
DSCR Loans for Real Estate Investors
DSCR stands for debt service coverage ratio. These loans qualify based on the property’s rental income rather than the borrower’s personal income. Champions Funding offers DSCR loans for investors who want to build a rental portfolio. The math is simple: if the property generates $2,000 in monthly rent and the mortgage payment is $1,500, the DSCR is 1.33. Champions Funding, like many non-QM lenders, often requires a minimum DSCR of 1.0 to 1.25. No tax returns, no pay stubs, no debt-to-income ratio calculations. Just the property’s cash flow.
Asset Depletion and Other Niche Products
Champions Funding also offers asset depletion loans, which allow borrowers with significant savings or investments to qualify based on their assets rather than income. They have foreign national loans for non-U.S. citizens, ITIN loans for borrowers without a Social Security number, and even loans for borrowers with recent credit events like a foreclosure or bankruptcy. The common thread is flexibility.
How Champions Funding Works with Mortgage Brokers
Since Champions Funding is wholesale-only, mortgage brokers are their primary customers. The process is straightforward. A broker submits a loan scenario through the Champions Funding portal. A dedicated account executive reviews it and provides preliminary guidelines. If the scenario fits, the broker submits a full application. Champions Funding then handles underwriting, processing, and funding.
Technology and Turn Times
Speed matters in the mortgage business. Champions Funding has invested in technology to streamline the process. They promise 24-hour turn times on initial underwriting decisions. Their portal allows brokers to upload documents, check loan status, and communicate with underwriters directly. For brokers used to fax machines and endless phone trees, this is a welcome change.
Dedicated Support and Scenario Desking
One of the biggest complaints about non-QM lenders is the lack of support. Champions Funding addresses this with a dedicated scenario desk. If a broker has a tricky file—say, a self-employed borrower with a recent gap in employment—they can call the scenario desk and get guidance on how to structure the loan. Each broker also gets a dedicated account executive who knows their business.
What Sets Champions Funding Apart from Other Wholesale Lenders
Plenty of lenders offer non-QM products. Here’s what makes Champions Funding stand out.
- Specialized focus: They don’t do agency loans, FHA, or VA. Non-QM is all they do, which means their guidelines are built for complexity.
- Competitive pricing: Non-QM rates are higher than agency rates, but Champions Funding is often on the lower end of the non-QM spectrum. They also offer lender-paid compensation options.
- Fast turn times: 24-hour underwriting turnaround is a game-changer for brokers working with time-sensitive deals.
- Dedicated support: A dedicated AE and underwriter mean less runaround and more accountability.
- Flexible guidelines: From bank statement loans with 12-month statements to DSCR loans with no ratio, their guidelines are designed to say yes more often.
Common Misconceptions About Champions Funding
Non-QM lending is still misunderstood. Let’s clear up a few things.
They’re only for borrowers with bad credit
Not true. Many Champions Funding borrowers have excellent credit scores—700 or higher. They simply have income that doesn’t fit agency guidelines. A surgeon with a thriving private practice might have a 780 credit score but tax returns that show modest income after deductions. Champions Funding can help.
Their rates are predatory
Non-QM rates are higher than conventional rates because the loans are not government-guaranteed. But they’re not predatory. Champions Funding rates typically range from 1% to 3% higher than agency loans, depending on the scenario. For borrowers who can’t get an agency loan, it’s often the difference between buying a home and renting forever.
They’re a hard money lender
Hard money lenders offer short-term, high-interest loans for fix-and-flip projects. Champions Funding offers long-term financing—30-year fixed and adjustable-rate mortgages. They’re a traditional mortgage lender, just with alternative underwriting.
Who Should Consider Champions Funding?
If you’re a mortgage broker, Champions Funding is worth adding to your lender list if you work with self-employed borrowers, real estate investors, or foreign nationals. If you’re a borrower, ask your broker if Champions Funding is an option. It’s particularly useful for:
- Self-employed borrowers with write-offs
- Real estate investors building a rental portfolio
- Foreign nationals buying U.S. property
- Borrowers with high assets but low taxable income
- Borrowers with recent credit events
How to Get Started with Champions Funding
For brokers, the first step is to sign up on the Champions Funding website. You’ll need your NMLS number and basic business information. Once approved, you’ll be assigned an account executive. They can walk you through the guidelines and help you submit your first loan. For borrowers, the process starts with your broker. If your broker isn’t approved with Champions Funding, ask them to look into it. The registration process is quick.
In a market where agency guidelines are tightening, having a non-QM partner like Champions Funding can make all the difference.