Glossary of Financial Terms
» Non-Conforming Loan
- Non-Conforming Loan
- A non-conforming loan refers to a type of loan that does not meet bank standards for funding.
Reasons can be as diverse as lack of sufficient credit to the unorthodox nature of the use of funds or the collateral backing it. In many cases, non-conforming loans can be funded by hard money lenders like Avatar Financial.
The flexibility of private money (of which hard money is a niche market) can allow for a much wider range of projects to be funded, although additional collateral and documentation may be required by the lender.
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