Conforming vs. Non-Conforming Mortgages

Your mortgage can be determined by a conforming and non-conforming loan and that depends on how much money your

lender will give you. A conforming loan fulfills and meets the standard underwriting guidelines.

An example would be conventional and non-conventional loans. Remember, conventional loans have standard underwriting

guidelines and these are provided by Government-sponsored like Fannie Mae or Freddie Mac companies while

non-conventional loans like FHA and VA set their underwriting guidelines.

These companies buy loans from your lender so the lender can fund more mortgages. But they’ll

only buy loans that are within the size limits established by their guidelines. If your loan size exceeds their limits and

doesn’t conform to their guidelines, it’s considered a non-conforming loan.