Conforming Loans in Massachusetts, Connecticut & Florida

house - mortgage broker, Massachusetts in Massachusetts, Connecticut & Florida
A conforming mortgage loan must meet specified criteria allowing companies like Fannie Mae and also Freddie Mac to purchase your individual loan. The most critically significant component of these criteria is the loan limit which means the maximum amount of money that a company like Fannie Mae or either Freddie Mac will buy. These loan limits will vary and change annually. A safe and sound choice for most first home buyers would be advised to procure a conforming mortgage loan.

Nonconforming Loans

Nonconforming loans, or ‘jumbo loans' cannot be either refinanced or purchased by Freddie Mac or Fannie Mac. These particular loan types include jumbo loans. Non-conforming loans that are referred to as ‘jumbo loans' typically exceed the conforming loan limit amount and feature unique underwriting guidelines that are decided by the lender. The higher risk of default on a jumbo loan makes them usually to feature less favorable terms for the borrower and can be a more difficult resale on a secondary housing market.