Home Buying in 60435>Question Details

Marie, Renter in Joliet, IL

Can someone please tell me about non-conforming loans? My husband and I would like to purchase a home.

Asked by Marie, Joliet, IL Thu Dec 13, 2012

Help the community by answering this question:


Hi Marie:

I am a local broker and may be able to help you. We work with lenders that will go as low as a 580 score. Please call or email me to get started.

I look forward to working with you.
Best regards,

Patty Harrison
Smart Mortgage Centers
patty@smarmtgs.net / http://www.smartmortgageinc.com
0 votes Thank Flag Link Tue Jan 22, 2013
A non-conforming loan is simply a loan that doesn't meet typical bank-funding criteria. Loans that are typically sold to Fannie Mae and Freddie Mac are generally considered 'conforming' loans because they meet Fannie Mae and Freddie Mac's criteria. Today, you can receive a conforming loan while putting as little as 5% down. The less you put down the more closely your credit will be looked at (i.e. higher score). Many people choose to use a non-conforming loan in today's market when they are not able to put down enough of a percentage of the purchase price and/or they don't have the credit score necessary to qualify.

Most consider an FHA mortgage to be a 'non-conforming' mortgage. If you are concerned, or have been told, that you do not qualify for a conforming mortgage, seeking an approval for an FHA loan should most likely be your next step. Today, an FHA loan will allow you to put down as little as 3.5% of the purchase price. An FHA loan will also have a little more lenient credit criteria.

In Illinois, you may also be able to take advantage of the IHDA program (or, Illinois Housing Development Authority program) that will allow you to put down as little as 1% of the purchase price.

There are several non-conforming financing options available to buyers today. Many of which are widely used and well understood by competent mortgage originators. If you would like to be referred to some excellent mortgage originators to talk to, please feel free to contact me.

I hope this was helpful.

0 votes Thank Flag Link Mon Jan 21, 2013
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