Non-Conforming Loans

Specialist lenders offer non-conforming loans to people who don't quite meet the standard lender's strict lending criteria, including people with a bad credit history, which could include having a history of late repayments, loan default or possibly even formerly bankrupt; seasonal, casual or self-employed workers.

Are You a Non-Conforming Borrower?

There are a number of common situations which could see you in the 'non conforming' borrowing area. However, often, if you have the ability to repay the loan, there is probably a non conforming lender who will give you a go.  Some common situations include

• Short term self employed:  You may have recently started a new business or are in the process of starting one. Traditionally, because you could not provide 2 or even 3 years financial statements, you were refused finance. Bur, now, if you can explain your situation in a way that will give comfort to the non conforming lender you will normally be considered.
  
  
• Borrowers with irregular income:   You will be considered if the lender can get some comfort in the consistency of your future earnings.
  
  
• Defaults, Judgments & Bankruptcy:  If you have a bad credit history, you could still be considered for finance as long as they have a satisfactory explanation for your situation. Typical explanations include: divorce, failed business, illness or unexpected cash flow issues.
  
  
• Tax Debts:  This has traditionally been a no go area for many banks and traditional lenders. However, many non conforming lenders will consider borrowers with tax debts that need to be paid out, as part of a refinance. Some may even not attribute any interest penalty to this for credit impairment.
  
  
• People with large amounts of consumer debt:  This is one of the favourite areas of non conforming lenders as they will normally be improving your monthly commitment levels dramatically, and be substantially improving your financial situation.