Loan Programs

Imperfect Credit Programs | Conforming and Non-Conforming | Fixed Rate | Balloon | Adjustable Rate | Interest Only | FHA

Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year. The current conforming loan limits are:

One-unit: $417,000
Two-unit: $533,850
Three-unit: $645,400
Four-unit: $801,950

Loans above the maximum loan amount are also known as 'jumbo' loans. Such loans often have a little higher interest rate than conforming because they are bought and sold on a much smaller scale. Loans that do not meet the borrower credit requirements are called 'B','C' and 'D' paper loans vs. 'A' paper conforming loans.