Getting denied by a traditional bank doesn't mean homeownership is out of reach. If you're self-employed, have less-than-perfect credit, need to borrow more than conventional limits allow, or simply don't fit the standard lending box, non-conforming loans in Florida might be exactly what you need.
The phrase "non-conforming" sounds complicated, but the concept is straightforward. These are mortgages that don't meet the guidelines set by Fannie Mae and Freddie Mac—the two government-sponsored enterprises that buy most mortgages from lenders. That doesn't make them bad loans. It just means they're designed for borrowers with unique situations that traditional lending can't accommodate.
City First Mortgage specializes in non-conforming loans for Florida buyers. Based in Hollywood since 1988, we've built our reputation on helping people who don't fit the conventional lending mold. If traditional banks have turned you down or can't offer what you need, we can likely find a solution.
What Makes a Loan Non-Conforming?
Understanding why a loan is classified as non-conforming helps you recognize whether this type of financing fits your situation.
Loan Amount Exceeds Conforming Limits
The most common reason a loan becomes non-conforming is size. In 2025, the conforming loan limit for most of Florida is $806,500 for a single-family home. Some high-cost counties have higher limits, but if you need to borrow more than these amounts, you'll need a non-conforming jumbo loan.
Florida's luxury real estate market—particularly in South Florida, beachfront areas, and upscale communities—means many buyers need jumbo financing. A $1.2 million home in Miami Beach or a waterfront property in Hollywood requires a non-conforming loan simply because of the purchase price.
Borrower Doesn't Meet Standard Credit Requirements
Fannie and Freddie have specific credit requirements. Conventional conforming loans typically want credit scores of 620 or higher, debt-to-income ratios below 43%, and clean credit histories. If you don't meet these criteria—maybe you had a bankruptcy three years ago, or you're self-employed with write-offs that reduce your qualifying income—you'll need non-conforming financing.
These loans evaluate your ability to repay using different criteria. Instead of just looking at W-2s and tax returns, lenders might consider bank statements, assets, or other factors that demonstrate you can handle the mortgage payment.
Unique Property or Loan Structure
Some properties don't qualify for conforming loans even if the buyer and loan amount would otherwise fit. Investment properties, properties in poor condition needing extensive repairs, or homes with unusual characteristics might require non-conforming financing.
Loan structures outside the standard 15 or 30-year fixed-rate mortgage also fall into the non-conforming category. Interest-only loans, adjustable-rate mortgages with non-standard terms, and other alternative structures don't conform to Fannie and Freddie guidelines.
Types of Non-Conforming Loans in Florida
Several types of non-conforming loans serve different borrower needs. Understanding your options helps you find the right fit.
Jumbo Loans
Jumbo loans are non-conforming simply because of size. If you're buying a high-value Florida property, you'll need jumbo financing for any amount exceeding conforming limits.
Despite being non-conforming, jumbo loans often have competitive rates for well-qualified borrowers. You'll typically need excellent credit (700+), a substantial down payment (15-25%), low debt-to-income ratios, and significant cash reserves. Documentation requirements are thorough because without Fannie and Freddie backing, lenders keep these loans on their books or sell them to private investors.
Florida's luxury real estate market makes jumbo loans common here. From waterfront estates to downtown Miami condos, properties frequently exceed conforming limits.
Bank Statement Loans
Self-employed borrowers often struggle with traditional mortgages because business write-offs reduce their qualifying income on tax returns. A real estate agent earning $150,000 might show only $75,000 in taxable income after deductions, making it hard to qualify for the mortgage they can actually afford.
Bank statement loans solve this problem by using deposits in your business or personal bank accounts to calculate income instead of relying on tax returns. Lenders typically review 12-24 months of bank statements, calculating your average monthly deposits to determine qualifying income.
This approach works beautifully for Florida's large self-employed population—contractors, real estate professionals, small business owners, and freelancers who have strong income but significant tax deductions.
Asset-Based Loans
Asset-based loans qualify you based on assets rather than income. If you're recently retired with substantial investments, a high-net-worth individual with significant assets, or someone with irregular income but strong wealth, these loans make homeownership possible without traditional income verification.
Lenders look at your retirement accounts, investment portfolios, savings, and other liquid assets to determine your ability to make payments. Some programs even allow you to pledge assets as additional collateral.
Investor Cash Flow Loans
Real estate investors buying rental properties often can't qualify using traditional methods because they own multiple properties and the debt-to-income calculations become problematic. Investor cash flow loans evaluate the property's rental income potential rather than focusing solely on your personal income.
If you're buying a rental property in Florida's strong vacation rental markets like Orlando, Tampa, or South Florida beach communities, these programs let you qualify based on the property's ability to generate income.
Foreign National Loans
Florida attracts buyers from around the world, but foreign nationals can't easily get traditional U.S. mortgages. Non-conforming foreign national loans allow international buyers to purchase Florida property using alternative documentation and qualification methods.
These programs typically require larger down payments (30-50%) and have higher rates, but they enable foreign buyers to own Florida real estate without U.S. credit history or Social Security numbers.
Who Benefits from Non-Conforming Loans?
Certain situations make non-conforming loans the ideal—or only—option.
Self-Employed Professionals
If you're a business owner, contractor, consultant, or freelancer in Florida, you likely write off significant business expenses. While smart from a tax perspective, these deductions reduce your qualifying income for traditional mortgages. Non-conforming bank statement or asset-based loans let you qualify using your actual earning power.
Recent Credit Challenges
Maybe you went through a divorce, had medical bills that led to late payments, or experienced a business failure resulting in bankruptcy. Traditional lenders want several years of perfect credit after negative events. Non-conforming lenders evaluate your current financial stability and ability to pay, not just past credit problems.
If it's been two years since a bankruptcy or foreclosure and you've rebuilt financially, non-conforming loans can get you back into homeownership sooner than conventional financing.
High-Income Earners Buying Expensive Homes
Physicians, executives, successful entrepreneurs, and other high earners in Florida often buy homes exceeding conforming limits. Jumbo non-conforming loans let you finance luxury properties with competitive terms if your financial profile is strong.
Real Estate Investors
Building a Florida rental property portfolio becomes difficult with conventional financing once you own multiple properties. Non-conforming investor loans focus on property cash flow rather than your personal debt-to-income ratio, letting you continue growing your portfolio.
Retirees with Assets but Limited Income
Retirement often means substantial assets but reduced income that doesn't look impressive on paper. Asset-based non-conforming loans let Florida retirees buy or refinance homes using their nest egg to demonstrate ability to pay.
Foreign Nationals
International buyers purchasing Florida vacation homes, investment properties, or relocating for work need non-conforming foreign national loans since they lack U.S. credit history.
Benefits of Non-Conforming Loans
Non-conforming financing offers advantages traditional loans can't match.
Flexible Qualification Criteria
Traditional mortgages have rigid requirements. Non-conforming lenders evaluate your complete financial picture using common sense underwriting. If you can demonstrate ability to make payments, you can often get approved even when your situation doesn't fit conventional guidelines.
Alternative Documentation
Don't have W-2s or traditional income verification? Non-conforming loans accept bank statements, asset documentation, rental income calculations, and other alternatives. This flexibility helps self-employed borrowers, retirees, and others with non-traditional income sources.
Faster Approval for Some Situations
Because non-conforming lenders often keep loans on their books rather than selling to Fannie and Freddie, they sometimes have more authority to make quick decisions. If your file is straightforward despite being non-conforming, approval can be faster than traditional channels.
Access to Higher Loan Amounts
Conforming limits cap how much you can borrow. Non-conforming jumbo loans let you finance expensive Florida properties without restriction, as long as you qualify for the payment.
Solutions for Unique Properties
Want to buy a property that needs significant repairs? Considering an investment property? Non-conforming loans handle properties that don't fit conventional lending boxes.
Requirements and Considerations
Non-conforming loans offer flexibility, but they still have requirements and trade-offs.
Higher Interest Rates
Without Fannie and Freddie backing, lenders price non-conforming loans to reflect higher risk. Rates are typically 0.25% to 1.5% higher than comparable conforming loans, depending on your situation and the specific program.
However, slightly higher rates don't necessarily mean unaffordable payments. If non-conforming financing is your only path to homeownership or lets you buy a property generating rental income, the rate difference may be worthwhile.
Larger Down Payments
Many non-conforming programs require 15-25% down, more than the 3-5% possible with some conforming loans. Jumbo loans often want 20%+ to offset lender risk. Asset-based and foreign national loans may require 30-50% down.
If you've been saving and have substantial equity from a previous home sale, these down payment requirements may not be obstacles.
More Documentation
While non-conforming loans offer flexible income verification, overall documentation requirements can be extensive. Lenders want to thoroughly understand your financial situation since they're taking on loans Fannie and Freddie won't buy.
Expect to provide detailed bank statements, asset documentation, explanation letters, and other materials to paint a complete financial picture. Working with an experienced lender makes this process manageable.
Loan Limits and Restrictions
Some non-conforming programs cap loan amounts or restrict property types. Understanding these limits upfront helps you target the right properties and set realistic expectations.
The Non-Conforming Loan Process in Florida
Getting a non-conforming loan involves similar steps to conventional mortgages, with some differences.
Consultation and Program Selection
Start by discussing your situation with a lender specializing in non-conforming loans. Not all lenders offer these programs, so working with someone experienced is crucial. They'll evaluate your situation and recommend which non-conforming program fits best—bank statement, asset-based, jumbo, or another option.
Pre-Qualification
Based on initial information and documentation, your lender provides a pre-qualification showing how much you can likely borrow. This helps you house hunt within your budget and shows sellers you're a serious buyer.
Property Search
Shop for Florida homes within your pre-qualified range. If you're using a program with property restrictions, ensure homes you're considering meet requirements.
Full Application and Underwriting
Once you're under contract, submit a complete application with all required documentation. Underwriting for non-conforming loans is thorough. Lenders review everything carefully since they're making lending decisions outside standard Fannie/Freddie guidelines.
Be responsive to document requests and provide clear explanations for anything unusual in your financial profile. Good communication speeds up the process.
Approval and Closing
Once underwriting approves your loan, you'll receive a clear to close and move toward your closing date. Florida closings typically happen at title companies. You'll sign documents and receive your keys, just like any other mortgage closing.
Common Misconceptions About Non-Conforming Loans
Several myths about non-conforming loans discourage people from exploring these options.
"Non-Conforming Means Subprime or Risky"
Non-conforming doesn't mean subprime. While some non-conforming loans go to borrowers with credit challenges, many go to high-income earners buying expensive homes or self-employed professionals with excellent credit who simply don't fit W-2 qualification methods. The term just means the loan doesn't conform to Fannie/Freddie guidelines, not that it's inherently risky.
"Rates Will Be Sky-High"
While non-conforming rates are typically higher than conforming loans, they're not exorbitant. Well-qualified jumbo borrowers often get rates very close to conforming loans. Even borrowers with challenges usually find rates reasonable, especially when it's their only path to homeownership.
"I Need Perfect Credit"
Some non-conforming programs accept credit scores as low as 580-600, depending on the program and compensating factors. If you have recent credit issues but have stabilized financially, non-conforming loans may work when conventional lenders won't consider you.
"The Process Takes Forever"
Non-conforming loans often close in similar timeframes to conventional loans—30-45 days is standard. Some experienced lenders can close faster when situations are straightforward. Working with a lender who regularly handles non-conforming loans keeps the process moving efficiently.
Why Choose City First Mortgage for Non-Conforming Loans in Florida
Not every lender offers non-conforming loans. Among those who do, experience matters tremendously.
City First Mortgage has specialized in non-conforming and alternative financing since 1988. Based in Hollywood, we've helped thousands of Florida buyers who didn't fit traditional lending molds. Our focus isn't just making loans—it's finding solutions for people other lenders turn away.
We offer multiple non-conforming programs including bank statement loans, asset-based financing, jumbo mortgages, investor cash flow loans, and more. Our relationships with lenders who hold non-conforming loans on their books or sell them to private investors give us access to programs many brokers can't offer.
When you work with us, you're not just another application. We take time to understand your situation, explain your options clearly, and recommend the program that makes the most sense. Our experience means we can often structure loans in ways that maximize your approval chances while keeping costs reasonable.
We're also realistic. If your situation isn't ready for a non-conforming loan, we'll tell you what needs to improve and create a roadmap to get you there. Sometimes waiting a few months to strengthen your profile saves you thousands in the long run.
Take the Next Step
If traditional lenders have told you no, or if you know your situation doesn't fit conventional guidelines, don't give up on Florida homeownership. Non-conforming loans open doors that conventional financing keeps closed.
Contact City First Mortgage today at (954) 967-6600 or apply online. Our team will review your situation and explain exactly which non-conforming programs you might qualify for. We'll be honest about your options, realistic about costs, and committed to finding a solution if one exists.
Located at 6100 Hollywood Blvd, Suite 305 in Hollywood, Florida, we've spent nearly four decades helping borrowers with unique situations achieve homeownership. Let us show you why thousands of Florida buyers choose City First Mortgage when they need non-conforming financing expertise.
Your path to Florida homeownership might be non-conforming—but that doesn't make it impossible. Let's explore your options together.