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What is a Non-Conventional Mortgage?

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Non-conventional mortgages are designed to help individuals with low to moderate incomes or individuals that require a low or no down payment.

This type of loan caters to borrowers who may have been rejected for a conventional loan. Reasons a borrower may have been rejected could include the following:

  • Being self-employed
  • Unsteady employment history
  • History of bankruptcy
  • Insufficient cash reserves

One downside to non-conventional loans is that they will require the borrower to pay additional fees, including mortgage insurance premium (MIP), funding and guarantee fees.

 

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