Non-Traditional Borrowers Have a Home With Preferred Capital Funding

Many people are under the impression that they may not be able to qualify for a traditional mortgage for certain reasons such as unsatisfactory credit or having non-traditional sources of income, however, there are certain types of unconventional loans available to borrowers who may have less than ideal credit or different types of income verification. If you are someone interested in buying a home, but have certain circumstances that are not aligned with being eligible for a traditional mortgage in Conyers, Georgia, you have a home with Preferred Capital Funding. Read on to learn more about purchasing a property as a non-traditional borrower.

How Do Unconventional Loans Work?

Unconventional loans do not follow traditional mortgage loan requirements and offer more flexible qualifications, unlike conventional loans, which typically require a higher credit score and a higher down payment amount. They offer borrowers who may not be able to typically qualify for a traditional mortgage or borrowers that have unusual sources of income a pathway to home ownership. Sometimes, borrowers that are self-employed are penalized during the underwriting process with traditional banks because they are unable to provide sufficient financial records. Other times, lack of industry experience or being in business only a short time and not having yet built up consistent historical financial statements can impact the ability to obtain a loan. These circumstances can usually be overcome with an unconventional loan that is appropriate for a borrower’s specific situation.

What To Know When Buying a Property As a Non-Traditional Borrower

There are certain factors to consider when you are a non-traditional borrower. First of all, there are many types of unconventional loans, including FHA, VA, and USDA loans, (which are insured by the government), hard money loans, crowdfunding, seller financing, holding mortgages, jumbo loans, and purchase money mortgages. You will want to work closely with a lender to better understand which type of mortgage is the most suitable for your unique situation. Unconventional loans can offer a borrower many benefits, such as more favorable loan limits, access to more types of properties, lower down payment requirements, and credit requirements that are less restrictive. There are additional benefits of working with a wholesale commercial mortgage lender because they usually require less documentation. Underwriting with business bank statements is only an option; tax returns are not required as they may not give the best picture of the ability to repay the loan for a small business or real estate investor.

Getting Assistance With Unconventional Loans and Non-Traditional Borrowing

Even if you have special circumstances that may stand in the way of obtaining a conventional loan, there are alternative financing options that can help you own a property. If you are a non-traditional borrower in
Conyers, Georgia, contact Preferred Capital Funding today for a consultation.