With the emergence of new lenders and programs to the mortgage market on a weekly basis there is a loan program for just about anyone whether conforming or non-conforming. Just check with you online Mortgage Professional to see what you qualify for.
In most states the current Conforming loan limits is $417,000 for single family residence, $533,850 for two family residences, $653,000 for three family buildings, and $801,950 for four family residences.
A Non-conforming loan simply means a loan that is outside of the standard guidelines set by Fannie Mae and Freddie Mac (the two government-sponsored enterprises that insure loans on the secondary mortgage market). Non-conforming loans have no set guidelines and vary widely from lender to lender. But most often non-conforming loans are mortgages that have larger loan balances, require less documentation, and have flexible credit score requirements. These loans carry an additional risk to the lender and as such the rates are higher.
Non-conforming loans have less stringent rules on fees that can apply to your loan, so review the details carefully.
The demand for nonconforming loans is gaining strength at just about the right time. Its growing presence is throwing lifelines to a record number of perplexed homeowners facing higher sales prices or stiff documentation requirements.
Non conforming loans has strict loan-to-value guidelines.
Conforming loans are available now with Stated Income, Stated Assets or "SIVA"
Jumbo loans are one type of non-conforming loans, due to the loan amounts exceeding the maximum limits adopted by FNMA and FHLMC. Besides exceeding the loan amount limits, loans can be non-conforming for other reasons, such as the borrower's credit profile, income/employment situations, cash reserves, property type, etc.
Non-conforming loans typically have a higher rate and different requirements for your down payment.