Non-Conforming Mortgage Loans
A non-conforming loan is a home loan that does not conform to the underwriting guidelines set forth by the government-sponsored enterprises Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).
These types of loans are typically offered to borrowers who do not qualify for conforming loans. While its good to have this type of home loan as an option, the downside is non-conforming mortgages typically have higher interest rates and may carry some additional fees and even some additional insurance requirements. In other words, they are typically more costly.
Non-Conforming Mortgage Loan Advantages
Non-Conforming Mortgage Loan Disadvantages