Friday, January 11, 2013

What Is a Non-Conventional Loan



These types of loans are for the borrower or property that does not meet the traditional guidelines for a typical mortgage loan. They provide us, as your lender, a way to ensure that we have a solution to the issues or obstacles you may encounter in trying to obtain a mortgage. Non-conventional loans are often used for purchasing private residences and for building or renovating them. This blog discusses the non-conventional loan. Three types of non-conventional loans that we offer and will be discussing are:
·         Construction Loans
·         Renovation Loans
·         Bridge Loans
A construction loan takes a borrower through lot acquisition, construction, and conversion to a permanent loan upon completion of the project. A construction loan is a one-time close loan program to finance the construction of your dream home, providing both the construction funds and the permanent loan. This means you will save thousands by not having additional closing costs from multiple loan settlements.
A Renovation Loan is a construction loan for a primary residence that the applicant already owns. This program allows the homeowner to borrow funds based on the fully renovated value.
Bridge Loans facilitate a non-contingent contract for the purchase of a new primary residence using equity in a borrowers existing primary residence.
We provide conventional and non-conventional loans, and would be happy to assist you in either process. Contact me for aquality lending relationship and experience.

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