So what does someone mean when they talk about a non homeowner loan? For reasons unkown, non homeowner loans have gotten a bad reputation as being risky or shady. The term is fairly easy to figure out and seems to be just a victim of advertising or media saturation.

A non homeowner loan is exactly what it sounds like. It’s a loan given to an individual who does not own their own home. There are hundreds of thousands of people in this world that do not own their own home. Both financially wealthy and very poor. Even successful people have their own reasons for not owning homes. It is all dependent upon lifestyle.

Loans for non homeowners have a bad reputation. Or at least the term does. The term is splattered all over billboards and tv advertisements in the financial industry and one could almost say that it’s been tainted. But honestly, non homeowner loans are not any different than any other type of loan.

You can get non homeowner loan that is both secured and unsecured. Just like you can get a personal loan that is secured and unsecured. I get a kick out of advertisements for ‘personal loans for non homeowners’. No difference whatsoever. If you’re not familiar with secured and unsecured loans, here’s a quick recap.

Secured loans are loans in which some type of collateral is supplied to the lender as a guarantee on the note. In the event that you are deliquent on the loan, the bank can take possession of the collateral and attempt to recoup their loss, with your collateral.

Unsecured loans are loans in which no collateral is supplied to the lender to guarantee repayment. These types of loans are very high risk for the lender and that risk is usually reflected in the terms of the loan.

The confusion is really a matter of semantics. You could say something like ‘personal unsecured non homeowner loan’ and really just mean an unsecured loan. Or you might hear ’secured homeowner loan’ and it just means a secured loan in which the home might have been used as collateral.

So, you see there is no real need to be confused. A non homeowner loan is simply a loan provided by a lender, in which there may or may not be collateral provided to guarantee the note. The term, for reasons unknown, has been associated with risky lending and the concerns of some people really have no merit.

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