Non-Conforming Home Mortgage Loans
Everyone's financial situation is unique, and we’re here to find the right mortgage solution for you. With expert advice and access to competitive rates, we make the process smooth and stress-free.
Non-Conforming Home Mortgage Loans
A non-conforming loan is a mortgage that does not meet the underwriting guidelines established by Fannie Mae (FNMA) and Freddie Mac (FHLMC)—the two government-sponsored enterprises that regulate conventional loans.
Who Might Need a Non-Conforming Loan?
Borrowers with low credit scores or high debt-to-income ratios
Homebuyers seeking larger loan amounts exceeding conforming loan limits
Individuals with unique financial situations that don’t fit standard lending criteria
Key Considerations:
Higher Interest Rates – Lenders charge more due to increased risk
Additional Fees & Insurance – Some loans require private mortgage insurance (PMI) or other fees
More Flexible Approval – Can be a good option for those who don’t meet traditional loan requirements
If a conforming loan isn't an option for you, a non-conforming loan could be the right alternative. Let’s explore your options and find the best mortgage solution for your needs!
Pros and Cons of Non-Conforming Mortgage Loans
Advantages
Flexible Qualification: Ideal for borrowers who don't meet the strict criteria of conforming loans.
Higher Loan Limits: Allows for larger loan amounts, especially in the case of jumbo loans.
Expanded Property Options: May provide financing for properties that don’t qualify under standard conforming loan guidelines.
Credit Flexibility: Possible approval even with credit challenges, such as a recent bankruptcy.
Disadvantages
Higher Down Payment: Typically requires at least 20% down or more.
Stricter Qualification Standards: More thorough review of credit history, income, and financial stability.
Higher Interest Rates: Due to increased risk, lenders may charge higher rates compared to conforming loans.
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Tiffinie Larkins
Mortgage Broker
License# 2169349
Brokerage License # 1862092
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