A non-conforming mortgage is a term in the United States for a residential mortgage that does not conform to the loan purchasing guidelines set by the Federal National Mortgage Association /Federal Home Loan Mortgage Corporation (Fannie Mae and Freddie Mac). Mortgages which are non-conforming because they have a dollar amount over the purchasing limit set by FNMA/FHLMC are often called “jumbo” mortgages. Mortgages which are non-conforming because they do not meet FNMA/FHLMC underwriting guidelines (such as credit quality or loan-to-value ratio) are often called “subprime” mortgages.
A Non-Conforming Loan is a loan that fails to meet typical bank criteria for funding. In general, a real-estate loan is qualified as a non-conforming loan because either the borrower’s financial status or the property type does not meet standard performance guidelines. The following are three common situations in which a non-conforming loan can be applied effectively:
The loan amount is higher than the conforming loan limit
You have an irregular income or are self-employed
You are interested in purchasing a second home or an investment property
With a non-conforming loan program, Security America Mortgage can help you buy and refinance condos, modular homes and multi-family homes, as well as invest in large acreage parcels.
When should you consider a Non-Conforming Loan?
The National Association of Realtors reported that the affordability index of the fourth quarter of 2011 provided the best markets in the past 40 years of property buying history in America! Security America Mortgage has seen this trend continue into 2012 as well. Naturally, there has been rapid demand for securing all types of home loans, be it conforming or non-conforming loans.
Non-conforming loans are for buyers who may not be able to satisfy the standard parameters applicable for lending, but would like to make the most of the prevailing rock bottom property prices. These fixed rate and fully amortized loans could prove to be just right for you. If you are a single family home owner, or own a modular, pre-cut or panelized home, you may be eligible.
Because these loans do not meet conforming loan limits, there are a number of qualifiers and restrictions of which first time home buyers, multiple property owners and investors need be aware. The specialists at Security America Mortgage, Inc. walk you through all the conditions that apply and ensure that you are placed in the best program to benefit your current and future financial goals.
At Security America Mortgage, we can also help you with a non-conforming loan if you have an irregular income or are self-employed. Even if your credit score is nothing to write home about, landing a non-conforming loan could still be your ticket to purchasing property.
Contact Security America Mortgage today to receive the most comprehensive information on non-conforming loans available.