subject: Non-conforming Loans Have Been Designed To Help Borrowers [print this page] Any person requiring huge finance to pay for high-end luxury home or for any other purposes wherein large mortgage loan amounts need to be borrowed can apply for a non-conforming mortgage loan. Also, persons who do not qualify for a conventional mortgage loan or do not satisfy conforming loan guidelines may look to non-conforming home loan as a viable alternative.
Non-conforming mortgage loans are best for following persons: Low document borrower who has difficulty in verifying the last two years of income, Unstable income or infrequent or variable income, A history of late repayments, loan default, and bankruptcy, A borrower wishing to borrow more than 90-95 per cent of the value of the property, A borrower wishing to secure the loans against properties not normally appropriate as security and Older borrowers.
There are several benefits of applying for non-conforming home loan as it allows you to borrow now instead of waiting until credit issues or 2 years financials are available or to purchase specialized securities such as high-end luxury homes, procure finance to pay for one to four unit family residential property, perform any major home renovations, consolidate large high interest debts into a low interest secure home loan
Non-conforming loans on the other hand are mortgages that do not conform to a lender's typical loan underwriting criteria. This may include situations where the applicant has a poor credit history, or who may not have been employed long enough in the same job.
Non-conforming loans may exceed 80 per cent of the security's value and the interest rate is based on the severity of the credit history. Non-conforming loans generate higher delinquency rates than on premium products so a premium to the rates is added.
If your credit has been damaged, you may not qualify for a loan. However, there are many lenders who will still do the loan, and often at a very reasonable cost! By the word non-conforming loan is it simply means that you have a job and can make the payments. Your credit is used only to determine your interest rate and the loan amount to value of the home ratio.
