{"id":41670,"date":"2024-03-12T16:07:01","date_gmt":"2024-03-12T23:07:01","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=41670"},"modified":"2024-03-14T11:00:52","modified_gmt":"2024-03-14T18:00:52","slug":"buyer-non-conforming-loan","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-non-conforming-loan\/","title":{"rendered":"What is a Non-Conforming Loan When Buying a Home?"},"content":{"rendered":"<p>When buying a home, mortgages fall under one of two classifications \u2014 conforming and non-conforming loans. Most Americans financing a house will typically use a conforming loan, which means it \u201cconforms\u201d to guidelines that allow the loans to be sold to Fannie Mae or Freddie Mac, two of the largest mortgage buyers in the country.<\/p>\n<p>But what circumstances might lead your mortgage to fall into the non-conforming loan category?<\/p>\n<p>In this post, we answer the question: What is a non-conforming loan when buying a home, and how might it impact your purchase?<\/p>\n\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">How Much Is Your Home Worth Now?<\/h3>\n                        <p>Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight&#8217;s free Home Value Estimator.<\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/simple-home-value\/quiz?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Get Estimate<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n\n<div id=\"section--1\" data-toc-header=\"What is a non-conforming loan?\" data-toc-type=\"head\"><\/div>\n<h2>What is a non-conforming loan?<\/h2>\n<p>A non-conforming mortgage loan stands apart from the crowd of standard financing options. It doesn&#8217;t adhere to the guidelines set by <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-are-fannie-mae-and-freddie-mac-en-1959\/\">Fannie Mae and Freddie Mac<\/a>, the government-sponsored entities (GSEs) that buy and securitize mortgages. This divergence mainly revolves around the loan amount, but other factors like the borrower&#8217;s credit score, <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-a-debt-to-income-ratio-en-1791\/\">debt-to-income ratio<\/a>, and the property type can also play a part.<\/p>\n<p>Because they exceed the <a href=\"https:\/\/singlefamily.fanniemae.com\/originating-underwriting\/loan-limits\">conforming loan limits<\/a> or differ in underwriting standards, non-conforming loans offer flexibility for borrowers who don&#8217;t fit into the conventional loan box. This includes those looking to purchase high-value properties or who have unique financial situations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover what a non conforming loan is, how it works, and if it&#8217;s right for your homebuying journey. Explore options beyond conventional limits.<\/p>\n","protected":false},"author":298,"featured_media":41673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,629,632],"tags":[],"class_list":["post-41670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-home-financing","category-mortgage-loans"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is a Non-Conforming Loan When Buying a Home?<\/title>\n<meta name=\"description\" content=\"Learn what a non-conforming loan is, how it works, and if it&#039;s right for your homebuying journey. Explore options beyond conventional limits.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/buyer-non-conforming-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Non-Conforming Loan When Buying a Home?\" \/>\n<meta property=\"og:description\" content=\"Learn what a non-conforming loan is, how it works, and if it&#039;s right for your homebuying journey. Explore options beyond conventional limits.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/buyer-non-conforming-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-12T23:07:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-14T18:00:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/hl-blog.homelight.com\/wp-content\/uploads\/2024\/03\/non-conforming-loan-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Richard Haddad\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Haddad\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is a Non-Conforming Loan When Buying a Home?","description":"Learn what a non-conforming loan is, how it works, and if it's right for your homebuying journey. 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He works with an experienced content team that oversees the company\u2019s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News &amp; Info, where he also served as news director and director of internet operations.","sameAs":["https:\/\/www.homelight.com","https:\/\/www.linkedin.com\/in\/richard-w-haddad"],"url":"https:\/\/www.homelight.com\/blog\/author\/richardhaddad\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/41670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/298"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=41670"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/41670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/41673"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=41670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=41670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=41670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}