Mortgages, loans, financial matters

Because jumbo loans are non-conforming, they charge relatively higher interest rates than similar conforming programs. It is not so much that jumbo loans have higher interest rates; it is more the issue that conforming programs have lower rates. Although Fannie Mae and Freddie Mac are private corporations, wholly owned by their shareholders, they still maintain [...]

Conforming programs require the applicant to show sufficient income, fully documented and verified. If a homeowner or buyer has low documented income, a non-conforming program may be the only recourse. Some non-conforming programs allow for high debt-to-income ratios. For example, conforming programs limit total housing and long-term debts to only 36% of the borrower’s gross [...]