Common Non-conforming Programs
Whereas there may be dozens of conforming loan programs available at any given time, there are probably thousands of different non-conforming programs. Non-conforming lenders design loans for specific conforming guideline restrictions–or rather for the borrowers and situations that fail to meet those conforming restrictions. Most non-conforming programs tend to fall within the following six categories:
● Second mortgages
● Jumbo loan amounts
● Damaged credit
● Loan-to-Value (LTV) ratios
● Income qualification
● Asset verification
In addition or related to the above, a number of non-conforming scenarios also steer many borrowers toward non-conforming programs. Wherever the conforming loan proves too restrictive, chances are that a non-conforming loan exists to serve that niche market.