Nonconforming Mortgage

A nonconforming mortgage is a mortgage that does not meet the requirements of Fannie Mae or Freddie Mac. This can include mortgages that are for more than $417,000, have a higher interest rate than the conforming loan limit, or have a different loan term than the conforming loan limit. Nonconforming mortgages are often referred to as jumbo loans.

There are a few reasons why someone might choose to get a nonconforming mortgage. One reason is that they may need a loan amount that is larger than the conforming loan limit. Another reason is that they may have a credit score that is below the conforming loan limit. Finally, some people may simply prefer the terms of a nonconforming mortgage, such as a longer loan term or a lower interest rate.

There are a few things to keep in mind if you are considering getting a nonconforming mortgage. First, the interest rate on a nonconforming mortgage is typically higher than the interest rate on a conforming mortgage. Second, nonconforming mortgages are not as widely available as conforming mortgages. This means that you may have to shop around to find a lender who is willing to offer you a nonconforming mortgage. Finally, nonconforming mortgages are not eligible for government-sponsored mortgage insurance, which means that you will need to have a down payment of at least 20%.

If you are considering getting a nonconforming mortgage, it is important to speak to a qualified mortgage lender to discuss your options.