A loan that qualifies as a non-conforming loan does not meet the standards set by the financial Freddie Mac or Fannie Mae. In most situations, either the property or the borrower’s financial status does not meet the requirements for a traditional loan.
A jumbo loan is the only option to purchase a home that is over conforming limits unless secondary financing is also attached. Jumbo loans are basically loans that are not eligible for to be purchased by Fannie Mae or Freddie Mac, and therefore they must be sold in a different loan market. Because of this, the rates of these types of loans are typically a bit higher. Many of these loans are provided by Hedge funds or other money sources to include the large portfolio banks.
We have multiple carriers that provide jumbo loans. Many will have various different guidelines on minimum reserves, credit scores, and loan to values. It is best to call First meridian Mortgage and discuss your circumstances.
An adjustable rate mortgage uses the exact opposite philosophy when it comes to interest. The initial interest rate (often called a teaser rate) on this type of loan is typically lower than a fixed rate mortgage, but that rate is not locked in for the life of the loan.
The reason for the lower interest rate is the loan uses a shorter term market index’s (1, 3, or 5-year treasury indexes) which typically is lower than the longer term 10 year or 30-year treasury indexes. This allows the banks to adjust the rate according to the terms of the loan and will track the economy more fully.
There are loans available for someone who is not a citizen of the United States. These loans typically are very similar to traditional loans, except they require a larger down payment that can be up to 40 percent. Resident aliens or foreign nationals who have a permanent address can apply for a loan using the same process as a citizen. Non-resident aliens must go through a different process to obtain a loan.
This type of loan is for someone who has a work visa. Obtaining a loan on a work visa can be difficult, due to the defined period of time that the visa allows someone into the country. Having a non-renewable visa will also cause an issue. The borrower must have two years of verifiable work history as well as verifiable assets from a source that is acceptable to the lender. In addition, a credit history must be able to be established. Typically a credit report is obtained from three major credit reporting agencies, but other countries may not have that many agencies. Without the credit scores, a loan is not often possible.
If you are interested in obtaining one of these non-conforming home loans, or to see if you qualify, call First Meridian Corporation today at 703-799-5626 to speak to one of our qualified loan officers. We have been providing expert advice and guidance since 1996, helping people throughout Virginia obtain non-conforming mortgages to become homeowners.
First Meridian Mortgage Corporation, NMLS #180004, is licensed in Virginia only by the Virginia State Corporation Commission, license #MB-1029. Kevin Retcher, NMLS #116922, serves Virginia borrowers through First Meridian Mortgage Corporation. NMLS Consumer Access.