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Non-conforming mortgage

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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 (Fannie Mae and Freddie Mac). 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 (such as credit quality or loan-to-value ratio) 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 premium 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.

Year One
Family ($) 		Two
Family ($) 		Three
Family ($) 		Four
Family ($)
2015 417,000 533,850 645,300 801,950
2014 417,000 533,850 645,300 801,950
2008 417,000 533,850 645,300 801,950
2007 417,000 533,850 645,300 801,950
2006 417,000 533,850 645,300 801,950
2005 359,650 460,400 556,500 691,600
2004 333,700 427,150 516,300 641,650
2003 322,700 413,100 499,300 620,500
2002 300,700 384,900 465,200 578,150
2001 275,000 351,950 425,400 528,700
2000 252,700 323,400 390,900 485,800
1999 240,000 307,100 371,200 461,350
1998 227,150 290,650 351,300 436,600
1997 214,600 274,550 331,850 412,450
1996 207,000 264,750 320,050 397,800
1995 203,150 259,850 314,100 390,400
1994 203,150 259,850 314,100 390,400
1993 203,150 259,850 314,100 390,400
1992 202,300 258,800 312,800 388,800
1991 191,250 244,650 295,650 367,500
1990 187,450 239,750 289,750 360,150
1989 187,600 239,950 290,000 360,450
1988 168,700 215,800 260,800 324,150
1987 153,100      
1986 133,250      
1985 115,300      
1984 114,000      
1983 108,300      
1982 107,000 136,800 165,100 205,300
1981 98,500 126,000 152,000 189,000
1980 93,750      

References

  1. "Archived copy" (PDF). Archived from the original (PDF) on 2008-07-24. Retrieved 2008-05-22.{{cite web}}: CS1 maint: archived copy as title (link)
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