Nonconforming Program

Nonconforming I Program

Conventional financing is available for certain properties with characteristics or features that limit the borrower's ability to obtain other financing. Nonconforming features include, but are not limited to, an unconventional foundation system, unconventional utilities, lack of central heating or unconventional ceiling height. The home must be structurally sound and not pose health and/or safety hazards to the occupants. (AHFC may require reasonable repairs if the repairs eliminate the nonconforming feature and make the property eligible for other financing.)

Nonconforming properties do not include those with limited marketability or those suffering from deferred maintenance, noncompliance with zoning, recreational properties or hunting and fishing cabins.

Additional Considerations

  • Limited to owner-occupied single-family residences, duplexes, and Type I manufactured homes
  • Minimum down payment is 10 percent
  • Only borrowers with an existing nonconforming loan may refinance under this program

Loan Options

How to Apply


Nonconforming II Program

The Nonconforming II Program provides financing for certain properties built after June 30, 1992, that may not have evidence of compliance with construction inspections and/or properties built after Dec. 31, 1991, that may not have evidence of compliance with thermal standards. The property must be existing and at least two years old at the time of submission for commitment.

Additional Considerations

  • Limited to existing owner-occupied single-family residences, condominium units, Common Interest Community units, duplexes, triplexes, fourplexes and Type I manufactured homes
  • The property must be at least two years old at the time of submission for commitment
  • Should the property exhibit any features of the Nonconforming Type I, it is not eligible for financing under Nonconforming Type II
  • A home inspection report conducted by a licensed home inspector is required
  • An energy rating equal to a minimum of 2 Stars is required

Loan Options

How to Apply