A non-conforming mortgage is a type of home loan that does not meet the lending criteria set by the Federal Housing Finance Agency (FHFA) for purchase by government-sponsored entities like Fannie Mae or Freddie Mac. These loans exceed conforming loan limits or have unique terms that fall outside standard underwriting guidelines. Non-conforming mortgages are often used for luxury or high-value homes (referred to as jumbo loans) or for borrowers with unique financial situations, such as self-employment, inconsistent income, or lower credit scores.

Non-conforming mortgages can offer greater flexibility in loan amounts and terms, but they often come with higher interest rates due to the increased risk for lenders. These loans may also require a larger down payment or stricter documentation to qualify. If you’re considering a non-conforming mortgage, partnering with an experienced lender is key to navigating the process and finding a loan solution that meets your needs while aligning with your financial goals. Non-conforming loans can be a great option for borrowers seeking customized financing for unique property or personal situations.