What's a non-conforming loan?
A non-conforming home loan is simply a term used for home loans that don’t typically conform to the major banks' standard loan criteria. It is the opposite of what’s called a ‘prime’ home loan.
Who is a non-conforming loan for?
Non-conforming home loans are often pitched at home buyers who have a few dents in their credit record – or a lower than average credit score. They may also have a unique employment situation or record, that doesn't comply with a mainstream lender's acceptance criteria.
Am I a non-conforming borrower?
Non-conforming isn’t a commonly used term. But if you’ve ever been declined for a home loan because you're self-employed and don't have the latest financial records or have a poor credit history, your lender or mortgage broker may have referred to your home loan application as 'non-conforming'. It is also referred to as a ‘specialist’ home loan product.
If you’ve been identified as ‘non-conforming’ and rejected for a loan, it’s understandable you may feel getting a home loan might be out of reach, but there are options. Here at Pepper Money we understand that real life happens, and our flexible and individual approach has helped provide an alternative to borrowers since 2000. And that’s meant helping borrowers with the following circumstances achieve their home loan goals:
- Self-employed - unable to show proof of income as you've recently started a business
- Poor credit history - previously declared bankrupt or a history of credit defaults
- Have an ATO debt you need to pay out
- Have a solid income, but not much of a deposit
- Have a deposit but it’s an inheritance or a gift
- Have non-standard income - work part-time or are a contractor, or have irregular income as a business owner
- Have multiple debts to consolidate such as personal loans, credit cards or business debt
- You’re nearing retirement and the major lenders won’t have a bar of you
If you're having trouble because of your credit history, type of employment, or because your income type doesn't tick the right boxes, speak to Pepper Money.
While Pepper Money doesn’t offer low doc loans, we can help with our alternative documentation (Alt Doc) loans. As the name suggests, the paperwork you need to give us isn’t less than a standard loan, it’s just different. It’s an alternative, more flexible way of helping us to verify your income, rather than the usual 2 year’s tax returns and PAYG statements.
Whether you have full documentation or are interested to learn more about alternative documentation loans, talk to one of our Lending Specialists on 137 377 or enquire online. Alternatively speak to an accredited Pepper Money broker, they're there to help.
Pepper has helped thousands of borrowers just like you. To read our customer stories click here.
This article provides you with factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
©Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.