Jumbo Loan
Jumbo Loan
A loan that is larger than the limits set yearly by Fannie Mae and Freddie Mac ($359,650 as of 1/1/2005). Because jumbo loans cannot be funded by these two agencies, jumbo loans usually carry a higher interest rate. Also called a non-conforming loan.
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Non Conforming Loan
Non Conforming Loan
A loan that does not meet the Fannie Mae or Freddie Mac underwriting guidelines. This is also known as a portfolio mortgage. The loan can't be sold on the secondary market so it must keep it and service it in its own portfolio.
Non-conforming loans have ...
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