What are
conforming and
non-conforming loans?
A loan that conforms to the guidelines established by Fannie Mae or
Freddie Mac is considered a conforming loan. These guidelines establish the maximum loan amount, down payment,
suitable properties, and credit & income requirements.
Lenders that make loans following these guidelines may sell those
loans to Fannie Mae or Freddie Mac. These
lenders may retain the servicing on these loans so that a borrower will
continue to make payments to the original lender.
Conforming loans make up the majority of loans in the U.S.
A loan that is larger than the conforming loan limit is called a
Jumbo loan.
Loans that do not meet the credit quality of conforming loans,
second mortgage loans, credit lines, home equity loans, and home
improvement loans are all non-conforming loans.
Landmark Mortgage
specializes in assisting those individuals with obtaining a home
loan whether for purchase or refinance. In
most cases, we can advise you on the best approach and help you with your
specific loan requirements.
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