Conventional Loans
Conforming Loans
Conforming loans have standard lending industry guidelines set by
Fannie Mae and Freddie Mac, two agencies you may have heard about
in newspapers or on TV.
Jumbo Loans
Conventional loans of larger than conforming amounts are called jumbo
or nonconforming loans. In most cases, jumbo loans have slightly higher
interest rates than conforming loans.
The word "subprime" is lending industry terminology for home financing
programs that accommodate borrowers with special qualifying factors,
including poor credit histories.
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