These are loans that don't meet normal conventional, FHA or VA guidelines Examples of non-conforming loans are for borrowers with less than perfect credit, excessive debt to income, or maybe the property is a bit out of the ordinary Non-conforming credit conditions usually qualify, but for higher interest rates and more money down at time of closing if you are purchasing
geared toward people with less than desirable credit (BCD), these loans have different underwriting criteria and each Lender's guidelines should be studied for instance, a loan may require two appraisals by two different appraisers
Non-Conforming loans are those that need special consideration These are usually loan types or applicants that do not fall under the guidelines of FNMA or FHLMC For example: The normal loan amount is $240,000 or less, if a JUMBO loan is requested for more than that amount it is non-conforming Or, in the case of a higher LTV the norm is 75% to 80% LTV if you want an LTV higher than the norm it is non-conforming If a customer does not qualify under FNMA or FHLMC standards there are other non-conforming loan types in which they may qualify For example: If the borrower cannot prove his or her income and needs to go with a no-income qualifier program it is non-conforming