The real estate market simply can’t catch a break: housing inventory for resale remains low, and rising interest rates are making it harder for buyers to justify making the leap.

And now we can add mortgage lender bankruptcies – and the rise (and fall) of “unqualified mortgages” – to the factors exacerbating an already uncertain market.

NQMs use non-traditional income verification methods and are often used by those with unusual income scenarios, self-employment or credit problems that make it difficult to qualify for a qualified mortgage loan.

Previously, they were seen as an option for creditworthy borrowers who could not qualify for traditional mortgage programs.

But after First Guaranty Mortgage Corp. and Sprout Mortgage, a pair of firms that specialize in non-traditional loans that don’t qualify for government support, went under recently, real estate experts began questioning their value.

First Guaranty filed for bankruptcy protection, and Sprout Mortgage simply closed early this summer.