A Non Conforming Loan is for those who require a mortgage outside ‘traditional’ loan criteria, such as poor credit or employment history, or where the loan may exceed 80% of the security’s value.
A Non Conforming loan should not be confused with a Lo Doc loan. While it is true that both types of loan are available to those who are a little ‘outside the square’, a Non Conforming loan is for those whose circumstances place them outside normal lending criteria.
For example, you may have just commenced at your place of employment, or perhaps have been in financial difficulty in the past and therefore have a blemished credit history.
A Non Conforming loan can also apply to loans where the amount exceeds 80% of the property’s value, or whose total value may be higher than usual, or perhaps the property is an apartment or large property that doesn’t fit normal lending criteria. When deciding on a non conforming home loan, consider the following: