   
|
|
Non-conforming Loan
|
A non-conforming loan is a mortgage that does not meet the lending guidelines of Fannie Mae or other major secondary mortgage market participant, such as Freddie Mac. For instance, a loan that goes above the Fannie Mae lending limit, usually called a jumbo loan, is a non-conforming loan. A mortgage can be a non-conforming loan for many other reasons, too. A prepayment penalty automatically makes a mortgage a non-conforming loan. A loan originated with an excessively high loan to value (LTV) will be a non-conforming loan. The borrower with a sufficiently low credit score will not be able to get anything other than a non-conforming loan. The non-conforming loan will often have a higher interest rate than a similar conforming loan.
Rate this non-conforming loan definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
