Conforming and Non-Conforming

Any conventional mortgage loan, other than a VA or FHA loan. A conventional loan may be conforming or non-conforming.

Conforming

A loan that conforms to the guidelines established by Federal National Mortgage Association (FNMA, Fannie Mae) or Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac) otherwise known as conventional mortgage programs. These guidelines establish the maximum loan amount, down payment, borrower credit & income requirements, and suitable properties. Lenders that make loans established to 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. At Concept Group, a registered New York Mortgage Broker (Concept Group I/L/O/T/N Manhattan Mortgage Corporation), your loan would be underwritten and funded by an actual mortgage lender. The lender would then either elect to keep and service the loan, or sell the loan on the secondary market at which time servicing may change hands.

Non-conforming

A loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac is called a non-conforming loan. 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 (‘A' paper) are called ‘B', ‘C' and ‘D' paper loans. Second mortgage loans-credit lines, home equity loans, home improvement loans are also non-conforming loans.

Conforming Loan Limits

1 Unit $400,000 , 2 Unit $512,000 , 3 Unit $618,900 , 4 Unit $769,100