Non conforming mortgage loan are those loans that exceeds the limits prescribe by Fannie Mae/Freddie Mac (FNMA FHLMA, respectively). These organizations authorized any non conforming mortgage loan under three hundred sixty thousand dollars. Both organizations Freddie Mac and Fannie Man are sponsored by government, their task is to facilitate someone who wants loan by financing him through funds, these funds are controlled by government and are invested in whole country.
Who Can Apply For Non Conforming Mortgage Loan?
Jumbo mortgage is the name given by government to these loans. The rates of interest on this type of loans are usually very high, moreover they requires different types of down payment from customer. Two million dollars is the minimum limit for which on which such amount of loan is allowed. So if someone is applying for this loan he should possess two million dollars.
Non Conforming Mortgage Loan Brokers:
Many private investors are now trying to invest in non-conforming mortgage loans. Professionals in this field are known as mortgage brokers; they are a third party or in other words are middleman in between private investors and burrowers. In contrast to traditional type of lenders, the non confirming mortgage loan brokers are working at expeditious rate, they can approve contracts with in no time from organization they are working for.
As the government has nothing to do with these financial contracts there are no hard and fast bureaucratic rules for all this procedure. The brokers are fully authorized to reject or accept any terms and conditions, based on standards approved by private investors for whom they are working.
Requirements Of Non Conforming Mortgage Loan:
There are certain qualifications which a customer must opt to be declared as eligible for mortgage loan, once those requirements are fulfilled by customer, the broker can approve the deal, by providing the amount of loan to the borrower. Most non conforming mortgage loans require security pledged for the payment of a loan or may require equity in the home which a customer wants to purchased.
Usually in other loans large amount of personal and property information is required. But in the case of non-conforming mortgage loans a little amount of information is require to lend a loan. Some even requires no income proves or any back payment grantee.
Why To Choose A Non Conforming Mortgage Loan:
Except for non conforming mortgage loans all other loans are not lend able for the non USA citizens. But the good thing about non conforming mortgage loans is that they can be given to citizen of USA even if he is a foreign. If someone qualifies for a loan, this doesn’t means that he should sign a contact blindly. We all are vicegerents of God in this world, so it’s are duty to operate our financial issues in a way which would not hurt him. One should think about Him before getting in to such contracts.
Interest Rates On Non Conforming Mortgage Loan:
The interest rate of loan on burrower can be determined by his credit score. Although non conforming mortgage loans are with high interest; but interest rate is dependent on credit score; higher the credit score lesser would be the interest rate. So the best option for a burrower to lower his interest rate is improvement in his credit’s score. If someone is paying back from his credit card, at least twenty percent of prescribed limit; than he is improving his credit score at a steady rate.
By doing so one can easily lowers his credit limit to balance ratio thus raising his credit score by thirty points in few days. It is advisable to improve credit score first and then to contact any non conforming mortgage loans organization.
