those loans that exceed the conforming loan limits. Generally, loans above $214,600 (Jumbo). of Page || Bottom of Page
These loans are also referred to as Jumbo Loans and do not conform to the traditional Fannie Mae or Freddie Mac conditions due to loan amount and underwriting guidelines. These loans are usually for amounts upwards of $399,500 and larger.
Any loan that is too large or doesn't otherwise meet the qualifications to be purchased by Fannie Mae or Freddie Mac
Loans where the standard loan criteria (proof of employment, proof of income etc) are not met. Low doc and no doc loans can be described as non conforming loans.
Any loan that allows you to borrow over a certain amount set by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).
so called 'non-conforming' finance refers to loans that cater for those who can't meet the standard income verification and credit history criteria mainstream lenders like banks and mortgage originators use for ordinary borrowers. Such borrowers include those who are self-employed, have a poor credit record or who have recently arrived in Australia. Non-conforming loans are usually at higher interest rates to reflect higher risk of these borrowers. The Non-conforming finance is also called 'sub-prime lending'.