The simple definition is: "Non Conforming loan is a loan that is not saleable to federal agencies". The credit status, debt ratio and other relating details are used to determine the interest rates and acceptable ranges for the loan amount to the property value ratio. This is referred to as "LTV" or "Loan to Value." The rates for these types of loans are usually 1-6 percent higher than that of conforming loans. The interest quoted on a conforming loan is usually 1/4 to1/2 percent less than jumbo loans (from the same lender). The non-conforming loans have higher than normal interest rates, but these loans tend to have the least stringent qualifying criteria.
Current non conforming home loan limit (or Jumbo mortgage loan limit) are as follows:
* Single family property - Above $359,650
* Two-family properties - Above $460,400
* Three-family properties - Above $556,500
* Four-family properties - Above $691,600
