Mortgage Basics: Information for First Time Home Buyers

Conforming vs. Non-Conforming Loans

Conforming and non-conforming loans describe two different basic categories of loans. One does not necessarily describe a better type of program. Again, which one is better depends on your needs, situation, and desires for obtaining the loan. Conforming loans are considered "standard" programs while non-conforming loans are often more flexible. Non-conforming loans suit many different borrowers for many different reasons. Some because they have less than perfect credit, some because they are self-employed, some because they want to borrow a high percentage of a home's value, and there are many more reasons that a non-conforming loan might work better for you. A wide variety of both conforming and non-conforming loan sources at a broker's disposal ensures that you get the best loan program and rate for your needs.