Real Estate Loan Terms of the Week

Subprime Typically, subprime loans are for persons with blemished or limited credit histories. The loans carry a higher rate of interest than prime loans to compensate for increased credit risk. HUD

Conforming Loan is a loan which meets all requirements to be eligible for sale to Fannie Mae or Freddie Mac.

Non-conforming loan is A loan that is not eligible to be purchased by Fannie Mae or Freddie Mac.

Jumbo Loan is a loan that exceeds Fannie Mae’s mortgage amount limits. Also called a nonconforming loan

Source:  GMAC Real Estate, Wikipedia and HUD

Jill Denton ~ Hometown GMAC Real Estate and Changing Spaces Interior Redesign & Staging

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