Non-Conforming Mortgages

Non-Conforming Mortgages test on 2-story house for saleNon-conforming loans do not meet the requirements of Freddie Mae and Fannie Mac. That makes them riskier.

Since those two entities have many, many rules, there are many, many things that can make a loan non-conforming, from the loan amount to borrower’s credit to percentage of condo association units that are behind on their mortgages, etc.

Non-conforming is not the same as non-qm.  Non-qm mortgages are a sub-set of non-conforming.  (QM stands for qualified mortgage.)

QM does not apply to jumbo or investment loans.  It also does not apply to reverse mortgages (even if they are insured by the FHA).