Non-conforming mortgage


A non-conforming mortgage is a term in the United States for a residential mortgage that does not conform to the loan purchasing guidelines set by the Federal National Mortgage Association /Federal Home Loan Mortgage Corporation. Mortgages which are non-conforming because they have a dollar amount over the purchasing limit set by FNMA/FHLMC are often called "jumbo" mortgages. Mortgages which are non-conforming because they do not meet FNMA/FHLMC underwriting guidelines are sometimes mistakenly called "subprime" mortgages. Non-conforming loans must remain in a lender's portfolio, or be sold to other companies who purchase non-conforming loans, or be securitized, with the securities being sold to investors seeking non-conforming mortgage-backed securities. Consequently, a is paid by those obtaining non-conforming mortgages, generally.25 or.5 points more than the same loan would cost if it were conforming. The loan amount is adjusted every few years depending upon the average sales price of homes in the U.S.

History of conforming loan limits

With passage of the economic stimulus package in 2008, Fannie Mae and Freddie Mac were temporarily authorized to purchase loans in high-cost areas, up to 125% of the area's median home price, not to exceed $729,750, except in Alaska, Hawaii, Guam, and the US Virgin Islands, where higher limits may apply.
YearOne
Family 		Two
Family 		Three
Family 		Four
Family
2015417,000533,850645,300801,950
2014417,000533,850645,300801,950
2008417,000533,850645,300801,950
2007417,000533,850645,300801,950
2006417,000533,850645,300801,950
2005359,650460,400556,500691,600
2004333,700427,150516,300641,650
2003322,700413,100499,300620,500
2002300,700384,900465,200578,150
2001275,000351,950425,400528,700
2000252,700323,400390,900485,800
1999240,000307,100371,200461,350
1998227,150290,650351,300436,600
1997214,600274,550331,850412,450
1996207,000264,750320,050397,800
1995203,150259,850314,100390,400
1994203,150259,850314,100390,400
1993203,150259,850314,100390,400
1992202,300258,800312,800388,800
1991191,250244,650295,650367,500
1990187,450239,750289,750360,150
1989187,600239,950290,000360,450
1988168,700215,800260,800324,150
1987153,100
1986133,250
1985115,300
1984114,000
1983108,300
1982107,000136,800165,100205,300
198198,500126,000152,000189,000
198093,750