Being in real estate it helps to understand the mortgage options, loan process and anything else that may help (or hurt!) a transaction in order to best serve clients. Obviously not all mortgage bankers & lenders are alike so it is very helpful to have a relationship with good mortgage sources that you feel safe with. I have a few!
Now, onto the differences between conforming & non-conforming loans...
The most common home loans fall into one of two categories: conforming or non-conforming. The conformation is referring to the guidelines of whether or not a loan can be sold to either of the two largest mortgage purchasers: Fannie Mae or Freddie Mac. The loans that conform to their guidelines are fittingly called conforming loans and those that do not, non-conforming loans.
The standardization of these loans means there are underwriting rules & loan requirements:
These loans do not meet Fannie Mae or Freddie Macs requirements and include jumbo loans & the government backed loans such as FA, VHA or USDA.
It's important to understand that not all lenders are the same! For example not all lenders can provide construction loans and if buying acreage or a large parcel of raw land, it may be beneficial to work with a lender that is active in those types of purchases. I have a few excellent lender sources that are local, knowledgable and offer a high level of service to their clients. Contact me if you would like more information!