Refinancing your non-conforming home loan to a regular home loan

Sometimes you have been through a hard time financially and have found yourself having to use a non-conforming Lender for your home loan.

What is a Non-Conforming Lender?

Non Conforming Lenders are financial firms who specialise in providing loans to people with less than perfect financial history.  This type of loan is also known as 'sub prime' which indicates there is some risk attached to the Lender.  These Lenders charge a higher interest rate whose levels are based on levels of risk and can charge rather large establishment fees. 

Why use a Non-Conforming Lender?

These types of Lenders serve a purpose.  Poor financial management is not always intentional and people can find themselves in a less than desireable financial position.  These Lenders allow these people to find a loan so that they can keep their home, or buy a home who otherwise could not have done this through a regular or 'prime' Lender.

 When would I change my loan?

Loans from Non-Conforming Lenders are not meant to be long term.  They help people manage their finances and once they are back on track, they can refinance. 

Generally, you could change your loan:

• As soon as you have 6 months good loan repayment
• When your personal credit history is clean

 Finance Allsorts can assist you with your refinance