What is the difference between a conforming loan, a super conforming loan and a jumbo loan?
A conforming loan is one that is less than the maximum loan amounts set by Fannie Mae and Freddie Mac. The loan amounts are revised each year to reflect the change in the national average cost of a home. The current conforming loan amount limits are:
2-Unit Property $653,550
3-Unit Property $789,950
4-Unit Property $981,700
A super conforming loan is a loan category that was created by the Economic Stimulus Act of 2008. The Act allows Fannie Mae and Freddie Mac to purchase mortgages in “high cost” housing markets. Click here to see what your county super conforming loan limit is. These loans are easier to qualify for than Jumbo financing.
Jumbo loans are loans which exceed conforming and super conforming limits.
- If my loan application isn’t pre-approved, does that mean you can’t provide me with financing?
- What is your minimum credit score requirement?
- Do you have any programs that don’t require income documentation?
- Can I apply before I find a property and get pre-approved?
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- What is the minimum down payment required on a purchase mortgage?
- What is the maximum percentage of my home’s value that I can borrow on a refinance loan?
- What is the maximum debt-to-income ratio allowed?
- Is paying off an existing second mortgage or home equity line considered cash out?
- Can I keep my existing second mortgage or home equity line and refinance my first mortgage?
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- Can Empire of America finance the purchase of a property through a short sale?
- Am I able to refinance a property that was recently listed for sale?
- What is an ARM?
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- What is a three day right to cancel?
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- What is prepaid interest?
- What is the difference between an Interest Rate and an APR?
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- What happens after I apply?
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- Are any fees collected when I lock?
- What if rates drop after I’ve locked?
- What happens if the loan process takes longer than my lock period?
- Can I choose a different program or rate after I’ve locked?
- Can I relock my rate if I cancel and reapply?
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- What is an escrow/impound account?
- What are included in your closing costs? What are pre-paids & are they different from closing costs?
- Why do you charge a Lender Fee?
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- What is a rebate/credit?
- How can you offer such low rates?
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