A Little Bit About Non-Conforming Loans
If your loan doesn’t meet conforming standards, it’s considered a non-conforming loan. Non-conforming loans have less strict guidelines than conforming loans. These loans can allow you to borrow with a lower credit score, take out a larger loan or get a loan with no money down.
You may even be able to get a non-conforming loan if you have a negative item on your credit report, like a bankruptcy. Most non-conforming loans will be government-backed loans or jumbo mortgages.
Pros:
- Higher loan limits
- More flexible underwriting
- Competitive rates
Cons:
- Higher interest rates
- Stricter underwriting requirements
- Limited availability
- Higher down payment requirements
