Financing the purchase of a home that doesn't meet conforming guidelines can be challenging, but there are several alternative options available. Here's a breakdown of some strategies you and your clients can consider:

1. Shop the Home Loan Request – Not all lenders treat the property issues and challenges the same way. Just because one lender says “no can do” doesn’t mean all of them will, so, shop around.

2. Non-Conforming Loans:

• Portfolio Loans - These are loans held by lenders in their portfolios rather than sold to Agencies like Fannie Mae or Freddie Mac. Because the lender retains the risk, they have more flexibility in terms of the property condition, credit score, and down payment requirements.

• Jumbo Loans - If the home price exceeds the conforming loan limits, you might consider a jumbo loan. These loans are not backed by the Agencies but are available through private lenders.

• Hard Money Loans from Private Lenders - Hard money loans are typically short-term loans provided by private investors or companies. They are based more on the value of the property than on the borrower’s creditworthiness. These loans often come with higher interest rates and fees but can be easier to obtain for properties that don't meet standard guidelines.

3. Agency Rehabilitation and Renovation Loans - Most agencies have special home loan programs that allow for rehabilitation and renovation. Some finance the cost of repairs. Some allow for funds for repairs and improvements to be escrowed (or held back) to cover the cost of repairs. 

4. Seller or Owner Financing - In some cases, the seller might be willing to finance the purchase directly. This can be particularly useful if the property is not eligible for traditional financing. Terms can be negotiated between the buyer and seller.

5. Bridge Loans or Temporary Financing - A bridge loan can provide temporary financing if you need to close quickly or if you're planning to make improvements to the property that will later qualify it for conventional financing.

6. Local Banks, Credit Unions, or Community - Based Financing - Local banks and credit unions may have more flexible lending criteria compared to larger national institutions. They may offer loans tailored to specific properties or unique situations.

7. Down Payment Assistance Programs - Some government or non-profit organizations offer down payment assistance programs that can help bridge the gap if you are purchasing a property that doesn't meet conventional loan guidelines.

8. Consider Renovation Before Purchase - Some lenders may allow you to secure a loan if you agree to make certain repairs or improvements before the loan closes. This might require negotiating with the seller to allow you access for repairs.

9. Cash Purchase with Refinancing Later - If possible, purchase the property with cash or a combination of cash and a bridge loan, then refinance into a traditional mortgage once the property meets Fannie Mae guidelines.

10. Co-Borrowers or Co-Signers - If your financial situation or the property's condition is a barrier, bringing in a co-borrower or co-signer with stronger qualifications might help secure financing.

Each option has its own set of requirements, risks, and benefits. Consulting with a mortgage broker or financial advisor familiar with non-conforming loans and alternative financing strategies is advisable to find the best solution for your situation. Call me…