A non-confirming loan does not meet the usual criteria of a bank’s confirming loan. The following are a few reasons why
- The amount of loan is relatively higher than the loan limit offered by a bank for mortgages.
- The loan taker doesn’t have the sufficient credit
- The collateral backing the loan is pretty unconventional
- These non confirming loans are often provided by creditors other than a bank, they may include hard money lenders or few private money institutions.
Different Types of Non Confirming Loans
The following are a few types of non confirming loans
- Commercial or Hard money loans. These types of bad credit home loans are usually used for funding big commercial projects like hospitals, amusement parks, gas stations and theaters. However commercial non confirming loans have a higher rate of interest and is usually short term ranging from three weeks to three years. However one advantage of such loans is that these can be arranged quickly without any difficulty and require very little documentation.
- Residential Loans. Residential non confirming loans also have a higher rate of interests when compared with confirming loans offered by the banks, besides they are quite strictly regulated.
Things to Keep in mind When Selecting Non Confirming Loan lender
The following things must be kept in mind when selecting non confirming loan lenders.
- Make sure that the money lender or institution has a solid reputation. This can be done by checking out their credentials by taking a look at their customer service rating.
- One thing to keep in mind is that most non confirming money lender are actually brokers who act as ago between the loan taker and the lender. Make sure you hire a direct money lender; this could help you save some money because non confirming loans already have a higher rate of interest.
Looking for Non-Confirming Loans?
If you are searching for someone who could offer you low doc loans similar to these then this company will be very useful. The following are a few reasons why hiring them is a good idea
- They are direct money lenders. You can expect an interest rate which is relatively lower.
- The loan process is direct and therefore easily streamlined according to your needs and requirements.
- Their mortgage specialists are well versed in helping people understand the right kind of non confirming loans for their homes or commercial projects.
- When you contact them you can expect a free loan evaluation as well.
- Their loan specialists are there to answer all your questions and will guide you with the right kind of loan processes for your specific needs.
- Some loan lenders might trap you into believing that their rate of interest is lower but there could be a hidden clause which could turn into a nasty surprise for you.
- Beware of predatory lending which is an unfair means of allotting loans to unsuspecting home owners. The loan terms are usually difficult for the borrowers. So make sure you don’t fall in the rut and choose a well known and reliable non confirming loan lender.