by Linda Todd

Created on: September 25, 2010   Last Updated: April 06, 2011

Most lenders use FNMA (Fannie Mae) or FHLMC (Federal Home Loan Mortgage Corporation, Freddie) loan products as most individuals know now that these agencies have been all over the recent news. This does not mean that the mortgage banker or mortgage companies will offer all of the same products that are available through these agencies.  The mortgages are funded by the Bank or Mortgage Company and then the loans; are usually sold to Fannie or Freddie. Not always but usually.  They follow the programs, guidelines and features of the agencies products.  Sometimes they retain the servicing rights to the loans.  There are many loan types we will discuss and these are basically FNMA products. This is not all inclusive; but this will help any person who wants to learn what some of their options are.

 Conventional Fixed Rate Conforming Loan: 

 This loan type is considered a loan that has a fixed rate for the life of the loan and the maximum loan amount for 2010 is:

 $417,000 - 1 unit, single family dwelling. 

   533,850 -  2 units, two family dwelling

   645,300 -  3 units, three family dwelling

   801,950 -  4 units, four family dwelling

High-Cost Areas Limits are:

 $729,750 - 1 unit, single family dwelling

   934,200 -  2 units, two family dwelling

1,129,250 - 3 units, three family dwelling

1,403,400 - 4 units, four family dwelling

Alaska, Guam, Hawaii, and the U.S. Virgin Islands have slightly different maximum conforming loan limits.

Non-Conforming/Jumbo Fixed Rate loans; are those over and above the $417,000 for a single family dwelling.  This would mean that for a single family dwelling; the non-conforming loan amount would be above $417500.  The million dollar single family dwelling would be a Jumbo loan or Non-conforming loan amount.

There are certain lenders or investors who make Jumbo loans or Non-conforming loans.  In some instances a Bank will make the loan on the consumer side of financing; rather than the Bank's mortgage department.  On occasions; the loan to value may be no more than 80%. 

Conventional Conforming Adjustable Rate Loan (ARM)

These are conforming loans with the same maximum loan amounts listed for the fixed rate loans and they have adjustable rate loan features.  Full in-depth details about these loans are available as anyone who opts for these loans must understand all of the details

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