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An Introduction to Non Conforming Loans

Trevor Cole Commercial Corp

Based in New York City, Trevor Cole Commercial Corp., Inc., is a national provider of commercial mortgages, as well as other loans. The Trevor Cole Commercial Corp., Inc., team has particular expertise in closing non-conforming loans.

A non-conforming loan is a loan that has not been purchased by a major investor like Freddie Mac or Fannie Mae, generally due to higher limits associated with the loan or as a result of an applicant’s low FICO credit score. Although rates on a non-conforming loan are often similar to those of a traditional loan, there are a few key differences individuals should be aware of.
For instance, the debt to income (DTI) ratio on a non-conforming loan must be similar to a comparable conforming loan. Though the exact ratio will vary from loan to loan, 1.25 DSCR percent is a reasonable estimate. Additionally, lenders providing non-conforming loans are likely to demand more comprehensive documentation from the lendee due to the larger size of the loan.

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