Read the middle of the article where they clearly state "While that makes up less than 3% of the $1.3 trillion of mortgage originations over that period, the growth is notable because it came as traditional home loans declined."

Unconventional is anything that is not underwritten in a conventional manner. A situation where you inherit a property and take out a mortgage to pay out others with shared inheritance in a property is almost certainly not representative of the underlying reason for the growth in the 3%. If the author is trying to imply a rebirth in reckless lending that caused the last recession then I'm arguing they picked the wrong subject. If it's because they couldn't actually find a subject that definitely should not have been given a mortgage then the entire premise of the article is wrong.

But that doesn't change the fact that this underemployed person still owes $610K.

It says at the end, she'll rent out the rooms. San Clemente is in prime beach front Orange County. 1) She will be able to rent a single room for at least $750-$1000. 2) The property is in a highly desirable, wealthy area and will likely continue to grow in value over time. 3) Her earnings will grow over time once she graduates.

That's a lot assumptions... 1. that she'll be able to rent the rooms 2. she'll be able to get a job where she lives.

I'd be scared s* if my $610K mortgage depended on getting a job and renting out multiple rooms every month.