Conforming loans are some of the most popular types of home loans, but how much do you know about them? Below, we go over a few conforming mortgage facts that some homebuyers are not aware of.
Information About Conforming Loans
- Conforming loans and conventional loans mean different things. The most common misconception that we run into regarding conforming loans is the idea that conforming loans and conventional loans are the exact same thing. “Conventional mortgage” is a broader category than “conforming loan.” A conventional mortgage is a loan that is not insured by a government agency. Conventional loans include conforming loans, which fit within the Fannie Mae and Freddie Mac conforming loan limits, and non-conforming loans, which are larger than those limits. We also call non-conforming loans “jumbo mortgages.”
- The conforming loan limits change every year. The conforming loan limits are updated each year. So, you should always check to make sure you know the current loan limits. They might be higher than you expect, if the limits you have are out of date.
- Conforming loan limits are higher in some counties than others. There are base loan limits which apply in the majority of counties across the country every year. But they do not apply in every county. If you are buying a house in a county with a high cost of living, look up the loan limits in that county. You may discover they are higher than the base loan limits.
- Jumbo loans can be easy to apply for. If you must apply for a jumbo mortgage, you do not need to worry—the process is not too different from the conforming loan process. While the requirements are more strict, the right mortgage company can help you apply quickly and smoothly for a non-conforming loan.
Get the Conforming or Non-Conforming Loan You Need
Blue Square Mortgage helps homebuyers apply for conforming and jumbo loans in Seattle and Washington State. To begin, please call us today at (206) 352-6453 to schedule your mortgage consultation. We are excited to get you into your new home.
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