The Mortgage Products
Agency Products Fannie Mae / Freddie Mac
Non Agency Loans Non QM- Jumbos
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Conforming Loans: These are standard mortgage loans that meet the loan limit and other criteria established by Fannie Mae and Freddie Mac. For 2023, the maximum baseline loan amounts for conforming loans in the contiguous United States, District of Columbia, and Puerto Rico are $726,200 for a single-unit property, $929,850 for a two-unit property, $1,123,900 for a three-unit property, and $1,396,800 for a four-unit property. In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, these limits are higher due to the high cost of living in these areas, with limits of $1,089,300 for a single-unit property up to $2,095,200 for a four-unit property.
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High-Balance Loans: These are a subtype of conforming loans designed for areas where the cost of living and housing prices are significantly higher than the national average. The limits for high-balance loans are higher than standard conforming loans. For 2023, the maximum ceiling for loan amounts in high-cost areas for a single-unit property in the contiguous United States, District of Columbia, and Puerto Rico is $1,089,300, and it goes up to $2,095,200 for a four-unit property.
The Federal Housing Finance Agency (FHFA) publishes these annual conforming loan limit values, which apply to all conventional loans delivered to Fannie Mae, and these limits can vary based on geographic location.
For more detailed information and specific requirements, you can refer to Fannie Mae’s website: Fannie Mae Loan Limits.
Non-QM loans are especially beneficial for certain groups of borrowers. These include real estate investors, foreign nationals, self-employed individuals, and those with less-than-stellar credit. Non-QM loans have more lenient credit requirements, require less documentation, and can offer flexible terms. However, they typically come with higher interest rates and fees, and may require higher down payments due to the increased lending risk. Additionally, not all mortgage lenders offer non-QM loans, so they may be harder to find.
Specific types of non-QM loans include:
- Asset Qualifier Home Loans: Suitable for those with substantial liquid assets but little to no income.
- Bank Statement Loans: Ideal for self-employed borrowers, allowing them to use bank statements instead of tax returns for income verification.
- Investor Cash Flow Home Loans: For real estate investors, using property cash flow for securing a mortgage.
- 1099 Income Loans: Tailored for 1099 earners who don’t qualify for full documentation mortgages.
- Foreign National Programs: Designed for non-citizens or resident aliens to purchase or refinance properties in the U.S.
- Jumbo Home Loans: For purchasing or refinancing high-priced properties, exceeding the loan limits set by Fannie Mae and Freddie Mac or the Federal Housing Agency.
- For detailed information about non-QM loans: Banks.com – Non-QM Loans