Conforming

The loan amount is usually determined by the value of the property, income, property type and guidelines that fluctuate based on occupancy and geographical location.

Mortgage is a mortgage that meets all the terms and conditions set by Fannie Mae and Freddie Mac.  The terms include maximum loan amount, credit worthiness, required documentation and suitability of the property.  The rates on conforming loans can be Fixed, adjustable, or interest only.

Non-conforming / jumbo mortgage

This is a term for a residential mortgage that exceeds the dollar amount set by the Federal National Mortgage Association / Federal Home Loan Mortgage Corporation (Fannie Mae and Freddie Mac).
An applicant applying for a jumbo mortgage is usually charged a premium of 25 to 50 basis points because the loan is not guaranteed by the federal government. 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.

Student Loan