Non-Conforming Loans

• Loan amounts exceeding $417,000
• Does not meet Fannie Mae and Freddie Mac guidelines
• Includes Sub-prime mortgages
• A paper loans
• Hard money loans

Non-conforming loans are mortgage loans that exceed $417,000 and also loans that do not meet traditional lending guidelines. Non-conforming loans include high credit risk, high loan-to-value and other parameters that do not meet conforming guidelines. There are many lenders that specialize in these types of loans but borrowers will generally pay a higher interest rate than they would achieve with a traditional loan.

Non conforming mortgage loans have often been used for borrowers that are self employed as well as borrowers that have income that does not meet traditional guidelines. Property types can also be a reason for a home owner needing this type of mortgage. Mixed use properties and historic properties will sometimes need to be financed with non conforming home loans.

Properties that are high in value are financed using non conforming jumbo loans. Guidelines are ever changing but general jumbo loans are considered to be over $1 million and sometimes less depending on which area of the country the property is in.

These types of loans have been given many different names but in general a non-conforming loan is any home loan that does not meet the Fannie Mae and Freddie Mac Guidelines for lending. These loans cannot be sold to either of those entities and because of this they will generally have a higher interest rate. Many times these loans are limited to shorter term loans or adjustable rate loans.

Many of the flexibilities of traditional loans are not allowed on non-conforming loans because of the inherent risk of lending larger sums of money. Interest only and other such options will often not be available. FreeHomeRefi.com can connect you with a lender that will be able to get into great detail with you and explain all of your options. You can fill out the form above or give us a call today. We look forward to answering all of your questions.