Non-Conforming Mortgages
Non-Conforming Mortgages - answer A non-conforming loan is a conventional
mortgage loan that exceeds current maximum loan limits and underwriting requirements
established by Fannie Mae and Freddie Mac.
Jumbo Loans - answer To finance properties in amounts that exceed conforming
guidelines. Exceed Fannie Mae and Freddie Mac loan limits.
Super Conforming Loans - answer Super conforming loans are used in certain high-cost
areas and may be made for amounts up to $729,750 for one-unit properties and as
much as $1,403,400 for four-unit properties. Freddie Mac and FHFA's websites provide
more detail on super conforming loans
Subprime Loans - answer High interest loans for borrowers who have either poor credit,
an unstable income history, or high debt ratios. They do not conform to Fannie or
Freddie
Alt-A - answer Are used for borrowers who do not represent the credit risk of subprime
but who do not meet the underwriting requirements of conforming prime rate loans.
Niche loans - answerloans for borrowers with unique circumstances or needs
Government Loans - answerFHA, VA, USDA/RHS
Section 35 loans - answerHigher-Priced Mortgage Loans
--Is secured by the borrower's principal dwelling, and
--Has an annual percentage rate that exceeds the "average prime offer" by 1.5
percentage points for loans secured by a first lien, and 3.5 percentage points for loans
secured by a subordinate lien, or
--The APR exceeds the average prime offer rate by 2.5 percentage points in the case of
a first-lien jumbo loan
Bridge Loan - answerA loan for a short-term period, which is expected to be paid back
relatively quickly that allows a homeowner to purchase a new home before selling the
former residence.
Non-Conforming Mortgages - answer A non-conforming loan is a conventional
mortgage loan that exceeds current maximum loan limits and underwriting requirements
established by Fannie Mae and Freddie Mac.
Jumbo Loans - answer To finance properties in amounts that exceed conforming
guidelines. Exceed Fannie Mae and Freddie Mac loan limits.
Super Conforming Loans - answer Super conforming loans are used in certain high-cost
areas and may be made for amounts up to $729,750 for one-unit properties and as
much as $1,403,400 for four-unit properties. Freddie Mac and FHFA's websites provide
more detail on super conforming loans
Subprime Loans - answer High interest loans for borrowers who have either poor credit,
an unstable income history, or high debt ratios. They do not conform to Fannie or
Freddie
Alt-A - answer Are used for borrowers who do not represent the credit risk of subprime
but who do not meet the underwriting requirements of conforming prime rate loans.
Niche loans - answerloans for borrowers with unique circumstances or needs
Government Loans - answerFHA, VA, USDA/RHS
Section 35 loans - answerHigher-Priced Mortgage Loans
--Is secured by the borrower's principal dwelling, and
--Has an annual percentage rate that exceeds the "average prime offer" by 1.5
percentage points for loans secured by a first lien, and 3.5 percentage points for loans
secured by a subordinate lien, or
--The APR exceeds the average prime offer rate by 2.5 percentage points in the case of
a first-lien jumbo loan
Bridge Loan - answerA loan for a short-term period, which is expected to be paid back
relatively quickly that allows a homeowner to purchase a new home before selling the
former residence.
