Private / Specialty Lending
Private / Specialty Financing: Non-Conforming Loans
A non-conforming loan is a loan that fails to meet a traditional bank or institutional lending criteria for funding.
Reasons may include that the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, inability to properly document income or reserves, the unorthodox nature of the use of funds, or financing of a specialty property or business opportunity. In many cases, non-conforming loans can be funded by noninstitutional lenders or private lending institutions. A large portion of real-estate loans are qualified as non-conforming because either the borrower's financial status or the property type does not meet bank guidelines. Non-conforming loans can be either A-paper or sub-prime loans.
The flexibility of private money can allow for a much wider range of deals to be funded, although more detailed and substantive collateral and documentation may be required by a lender.
Selecting a Non-Conforming Lender
Borrowers should select non-conforming lenders in the same careful way they would shop for any other loan. Look for favorable rates, efficient underwriting and funding process and quality customer service. Our rates for our unique non-conforming loan programs are typically equivalent and competitive to those of institutional banks, but terms are more flexible and loans are more easily attainable. We also have a broker correspondence that allows for brokers to originate loans under non-conforming guidelines.
Types of Non-Conforming Loans
Commercial non-conforming loans programs offer the flexibility to traditional bank financing. They are used to fund industrial and retail projects like RV parks, theatre complexes, gas stations, medical centers and more. Many of our commercial non-conforming loans are structured as bridge loans.
Residential non-conforming loans are very competitive to traditional conforming mortgages given by commercial banks, Fannie Mae, Freddie Mac and HUD. Our non-conforming loans offer borrowers:
· Stated Income / Verified Assets reduced documentation
· Fixed and ARM loan products
· Competitive A-Paper interest rates
· Reduced statutory loan fees
Our competitive home loan programs and rates put us at the forefront of top residential mortgage companies.
Learn about our commercial real estate loan programs and why we are one of the nations preferred commercial finance companies.
Through our extensive capital network and funding capabilities, our private lending group leads the way in specialty and niche lending.