Non-Conforming Loans May Help Applicants with Low Fico Scores

Loans pic

Loans
Image: trevorcolecommercial.com

Headquartered in New York City, Trevor Cole Commercial Corp selects a range of such loan products for certain institutions throughout the United States. Trevor Cole Commercial Corp specializes in securing loans for clients with low FICO credit scores.

Most leading banking institutions, only use a FICO score to determine whether they should lend funds to an applicant. A high FICO score, inevitably boosts the chances of an approved loan.

While it may be possible to secure a loan with a low FICO score, other conditions may not be
satisfactory. For example, an applicant with a low FICO score may have a much higher interest rate.

Credit applicants with low FICO scores may seek out independent investors, or financial firms to gain
loans. Such institutions provide nonconforming loans that do not have the same requirements as
conventional banks.

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What Are Non-Conforming Loans?

Trevor Cole Commercial Corp. pic

Trevor Cole Commercial Corp.
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp., Inc., specializes in providing small businesses and corporations a wide range of money-lending solutions, including non-conforming loans. Based in New York, New York, Trevor Cole Commercial Corp. serves clients throughout the United States.

Certain criteria qualify a potential borrower for an advance when applying for a loan at a bank. If they meet the criteria, which is outlined by government-sponsored agencies, they will secure what’s called a conforming loan.

If they do not meet those loan standards, another lending option includes what’s called a non-conforming loan. Typically granted by institutions that are not banks, non-conforming loans allow for individuals or companies with poor credit to obtain capital for the homes or projects.

They also enable those with excellent credit to secure capital with a higher limit, than that of conforming loans, enabling these borrowers access to greater loan amounts.

In contrast to conforming loans, non-conforming loans may not have as low of interest rates. These such loans may require underwriting guidelines that differ. However, Government-sponsored agencies do not back such loans. Moreover, may require larger down payments upfront, additional fees, and tougher underwriting rules.