Loan Programs & Plans


(iii) Non-Conforming Loans

A. Jumbo Loans :
Conventional loans that are too large for government agencies are called jumbo loans. Currently, any loans over $322,700 are classified as jumbo loans. Jumbo loans have higher interest rates than conforming loans - typically 0.5 percent to 1 percent higher. Jumbo loans also may have higher down-payment requirements.

A loan which is larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation are Jumbo Loans. As, jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

Jumbo Mortgage Loans offer :

* Larger loan amounts to purchase more expensive homes.
* Loan amounts as high as $1 million and down payments as low as 5%.

Jumbo Mortgage Loans facilitate high-end purchases of :

* Primary residences.
* Second or vacation homes Investment properties.

Super Jumbo Mortgage or Jumbo Mortgage Loans are best for people who :

* Want to finance larger and/or more expensive properties and can handle larger monthly payments.
* Investment-minded buyers who want to leverage their assets more effectively.

Currently a jumbo mortgage loan is a purchase or refinance loan that exceeds $333,700 for a single-family home. A jumbo mortgage loan is also called a non-conforming loan because it does not conform to the loan limits set by Fannie Mae (The Federal National Mortgage Association or FNMA) or Freddie Mac (The Federal Home Loan Mortgage Corp. or FHMLC).

B. Bad Credit Loans :
If you've had credit problems in the recent past, lenders consider you a higher risk borrower. In such circumstances, the credit decision includes factors beyond credit scores and credit history, often including employment, income, expenses, assets and other factors as considerations.

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