CONFORMING LOAN SERVICES

With the range of different loan types available, we understand the process can be a bit overwhelming. Add industry-speak language, such as conforming, non-conforming, super-conforming, jumbo loans, and you may feel your head begin to spin.

It’s easy to feel confused by the different types of loans and get lost in the terminology. That’s why we will fully explain the range of available loan types, terms, and programs that you qualify for so that you can make an educated decision on what’s financially best for you and your situation. We are here to guide you through this process…efficiently and professionally.

CONFORMING LOANS

A conforming loan is a type of mortgage loan that conforms to very specific lending terms, conditions, and guidelines established by government-sponsored enterprises:

  • Federal National Mortgage Association (Fannie Mae)

  • Federal Home Loan Mortgage Corporation (Freddie Mac)

Conforming loan programs have loan limits that are set by the county in each state. A conforming loan maximum on a single-family home must fall under $726,200 unless the property is in high-cost County as determined by FNMA and Freddie Mac. Learn more about loan limits here.

Mortgage loans that exceed the county loan limit are considered non-conforming loans or jumbo loans and are not sold to FNMA or Freddie Mac. Typically, this financing is provided directly through banks and other financial institutions. Luckily, Thrive Mortgage has many lender relationships that provide jumbo financing.

Jumbo loans are not that much different to process than a normal loan. The loans are a manual underwrite but the fees and documentation requirements are the same as a normal loan. Also, you cannot get mortgage insurance on a non-conforming/jumbo loan. Mortgage insurance only applies to conforming loans that are sold to FNMA or Freddie.

WHEN A CONFORMING LOAN MAKES SENSE TO YOU

People get a conventional conforming loan when they have good credit and at least 3% down. Between FHA and a Conventional loan, the mortgage insurance is a lot less expensive on a conventional loan than if they choose FHA. The overall cost of your mortgage loan is generally dictated by the amount of money you put down toward the purchase price of your home and your credit score. Rest assured, we are knowledgeable about the Fannie Mae and Freddie Mac requirements and how your loan fits in the mix. We will help you find the conforming mortgage loan that best fits your situation and your perfect house.

*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.