Loan Categories

Conventional Loans

Any mortgage loan other than a VA or an FHA loan. A conventional loan may be conforming or non-conforming.

Government Loans

Loans purchased or guaranteed by government organizations such as the Government National Mortgage Association (GNMA or GinnieMae). Ginnie Mae which is part of HUD helps increase the supply of affordable housing by guaranteeing securities issued by private lenders backed by pools of residential mortgages insured by three federal agencies -- the Federal Housing Administration FHA, the Department of Veterans Affairs(VA) and the Rural Housing Service.

Conforming Loans

A loan that conforms to the guidelines established by Fannie Mae or Freddie Mac. These guidelines establish the maximum loan amount, down payment, borrower credit & income requirements, and suitable properties. Lenders that make loans established to these guidelines may sell those loans to Fannie Mae or Freddie Mac. These lenders may retain the servicing on these loans - so that a borrower will continue to make payments to the original lender. Conforming loans make up the majority of loans in the U.S.

Conforming Loan Limits

	All Areas except Hawaii.	Hawaii
One - Family	$240,000	$360,000
Two - Family	$307,000	$460,650
Three - Family	$371,200	$556,800
Four - Family	$461,350	$692,025

Non-conforming Loans

A loan that does conform to the guidelines established by Fannie Mae or Freddie Mac is called a non-conforming loan. A loan that is larger than the conforming loan limit is called a Jumbo loan. Loans that do not meet the credit quality of conforming loans ('A' paper) are called 'B','C' and 'D' paper loans. Second mortgage loans - credit lines,home equity loans, home improvement loans are also non-conforming loans.

Portfolio Loans

Loans may be sold on the secondary market to Fannie Mae, Freddie Mac or a select number of conduits (e.g. GE Capital) or they be kept in the banks portfolio (e.g. American Savings Bank). Portfolio loans may have more flexible qualifying criteria, while saleable loans have to meetan investors criteria.

Commercial Loans

Loans programs discussed above are for 1-4 unit residential properties. For 5+ unit residential properties, office buildings, warehouses and other commercial property please contact us at the email address (or phone number) below or fill out our online free quote form Click Here.