Who Needs Non Conforming Loans: Are You Eligible?

If you are ready to buy your own home but are concerned that your personal status

may make it difficult to get a traditional or conforming loan, you will probably want to look into non conforming loans. Non conforming home loans are specially designed loans for individual buyers specific circumstances. In order to write these loans, mortgage companies will look at many things, including the borrowers credit history, income level, employment history, and general financial worthiness. You usually must go through a very detailed process before you can be given any type of interest rate or approval. There are certain people and certain situations that may require non conforming loans.

Self employed individuals will require a form of a non conforming loan called a flexible or more holistic loan. The name refers to the fact that there are few documents used in order to approve the loan. Generally you will need a signed document from an accountant or banker certifying your finances.

A person who has a variable income or someone who has changed jobs several times in the past few years may need to look at non conforming home loans. Most traditional or conforming lenders will only approve those who have worked in the same field or same company for several years. If you have gaps in employment, as long as you can show that you have had a steady, albeit variable income, you may be approved for non conforming loans.

Non conforming home loans may be a perfect solution for those who have gone through bankruptcy. As long as you are back on solid ground, you may qualify for one of these loans through a specialist lender.

People who dont have enough money for a traditional deposit may want to consider one of these loans as well. Most banks will want to see that you have personally saved 5-10% of your loan amount, but some people receive gifts or other large lump sums of money in other ways that can be used as down payments and may not be eligible for traditional loans.

Another group of people who may want to consider a non conforming loan would be those of mature age. As you get older, the normal loan length of 25 30 years may not be possible for most lenders to accept, as you may not be able to finish out the loan. The closer to retirement age you get, the more difficult it may be to get a conforming loan.

The final groups of people who may want to consider a home loan that is non conforming are Australians who live overseas or those who may have just established citizenship in Australia. For new Australian residents, though you may have a credit history in your country of origin, for approval in Australia, you will need an Australian credit history. For Australians who live overseas, they may have problems with the residential requirements as most lenders will require an Australian address before processing a loan. As you can see, even if you are not a traditional borrower, there are options for you to get a loan and to own the house of your dreams.

by: belindadarling

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