Difference between a conforming loan and a non-conforming loan. EZ Mortgages & loans in Boston

What is the difference between a conforming loan and a non-conforming loan?

A loan that conforms to the guidelines established by Fannie Mae or Freddie Mac is considered a conforming loan. The guidelines establish the maximum loan amount, down payment, borrower credit and income requirements, and suitable properties. Lenders that make loans established by these guidelines may sell the loans to Fannie Mae or Freddie Mac. These lenders may retain the servicing on these loans, so the borrower will continue to make payments to the original lender. Conforming loans (also known as "A" paper loans) make up the majority of loans in the United States.
A loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac is considered a non-conforming loan. A loan that is larger than the conforming loan limit ($322,700) is known as a Jumbo loan. Loans that do not meet the credit quality of conforming loans ("A" paper) are called "A -" "B","C" and "D" paper loans. Second mortgage loans, such as lines of credit, home equity loans, and home improvement loans are also considered non-conforming loans.

We have the home for your LOAN
We Say "YES" When Others Say "No"

Lowest Rates*

Free Pre-Approval

No Points No Closing Cost*

100% Loans 1-4 Units*

107% Loans

No Income Verification option*

Construction Loans

Commercial

One Day Out Of Bankruptcy

VA No Money Down

Conventional No Money Down*

FHA 3% Down

Down Payment Gift Programs

Closing Cost Assistance

100% Loans For Investors*

Jumbo loans Call now for complete details 508-894-2326
857-205-1068

Mark Alsyts - Senior Loan Officer
Centurion Funding Corp. of America
162 East Main St. Avon, MA 02322