Personal Loans Articles

Is There Such a Thing as Non-Homeowner Loans?

The world of finance includes opportunities for individuals to obtain all kinds of loans. This includes secured loans, unsecured loans, homeowner loans, non-homeowner loans, personal loans, bad credit loans, and more. Each of these names is just a simple label used to provide an indication as to the basics of any particular source of funding. For example, bad credit loans are those that are offered to individuals who have bad credit. Non-homeowner loans are offered to individuals who don't have a home to provide as collateral or security for the loan.

What Are Non-Homeowner Loans?

Even though obtaining a loan is easier if you own a home, it isn't necessary for all types of loans. There are all kinds of loans from small ones to huge ones and short ones to long ones. In fact, there are loans for just about any purpose, any amount of money, and any term or number of years for the loan's repayment.

Non-homeowner loans are those that are obtained by someone who does not own a home or real estate property. These individuals can either obtain unsecured loans with no collateral or secured loans for which collateral other than a home is used to secure the borrowed funds. Plus, non-homeowners can obtain loans for almost any purpose.

Are All Non-Homeowner Loans Unsecured?

Some non-homeowner loans are secured with some type or other of collateral. For example, car loans can be secured non-homeowner loans that are obtained by an individual who does not have a home, but who uses the car as collateral to secure the loan. Plus, there are other secured non-homeowner loans including boat loans, installment loans for electronics, furniture, and jewelry, and more.

Additionally, if the primary borrower has a co-signer for the transaction, the co-signer can offer to secure the borrowed funds with his home if he owns one. Therefore, even though the debt is classified as a non-homeowner loan since the primary applicant does not own a home, it is nonetheless secured by the co-signer's home.

Who Uses Non-Homeowner Loans?

Individuals who have need of additional finances but who do not own a home are the ones who take out non-homeowner loans. These borrowers can be students who are just starting our in life or they can be individuals who prefer to rent a place to live rather than purchase a home.

Are first-time homeowners included in this category? No, they are not simply because first-time homeowners secure their home mortgage with the home they intend to purchase with the borrowed funds.