The difference between Conventional and Conforming Loans.
Ever since I can remember, these two terms are incorrectly referenced in the media, websites, and by Mortgage lenders and Realtors as well. So what is the difference between a Conventional Loan and a Conforming loan? Let's start with defining Conventional Loans. Loans fall into two main categories: Government and Conventional. Government loans include FHA Loans (Federal Housing Administration), VA Loans (department of Veterans Affairs) and USDA Rural Development (United States Department of Agriculture). If a loan is not one of the former three, VA, FHA, or USDA, then it is a Conventional Loan. Conventional loans are offered by big banks, credit unions, FNMA (Fannie Mae), FHLMC (Freddie Mac), Mortgage Banks, etc. A loan is first defined as either Government or Conventional.
So now let's talk about Conforming Loans. Conforming loans are loans that meet the Underwriting guidelines and requirements of FNMA (Fannie Mae) and FHLMC (Freddie Mac). Simple as that. If the Fannie/Freddie Shoe fits, it's a conforming loan. The next qualifier for conforming is the Conforming loan limit. This is $484,350 nationwide. However, in 2008, Congress approved higher loan limits for some high cost areas. These loan limits go up to $726,525 for a single family residence, and can change annually. Loans made under the higher loan limits are called Conforming Jumbo, Super Conforming, and Conforming High Balance Loans. Here are the California Conforming High Balance Loan limits for 2019.
A non-conforming loan is one that does not fit the Fannie Mae or Freddie Mac guidelines. This can include Jumbo Loans, Portfolio Loans, Non-QM Loans, Alt-A and subprime loans. While Alt-A and Subprime loans are no longer available, we do offer Jumbo Loans, Portfolio Loans, and Non-QM loans to our clients. These offer higher loan limits than the Conforming limits.
VanDyk Mortgage is your source for all of the above loans. FHA, VA, USDA, Conforming, High Balance, and Jumbo.
We proudly offer a full array of Government, Conventional, and Jumbo loan Options including FHA, VA, USDA, FHA Jumbo, VA Jumbo, VA Refinance, Conventional, Jumbo, VA Condo loans, FHA 2-4 Unit Loans, VA 2-4 Unit Loans, FHA 203K Rehab Loans, 5% down Conventional loans, Conventional Condo's OK to 95%, 95% conventional purchase with ZERO Monthly PMI, and more.
Veterans: We are able to help Veterans with a new home purchase with a VA Loan or VA Jumbo Loan as soon as 2 years after Bankruptcy, Foreclosure, or Short Sale (even sooner if Short Sale involved no late payments). Call Today - get back into homeownership!
--> VA Loan Limits for 2018. Learn More - Up to $679,650 with zero money down VA Jumbo Loan
--> VA Loans over the County VA Loan Limit - yes, we allow this: Read more detail on how to get a VA Loan Over your County VA Loan Limit here VA Loans up to $1.5M!
We serve the entire state of California including: Anaheim, Antioch, Bakersfield, Brentwood, Burbank, Carlsbad, Chula Vista, Corona, Coronado, Downtown San Diego, Encinitas, Escondido, Fallbrook, Fremont, Fresno, Hermosa Beach, Huntington Beach, Irvine, Long Beach, Los Angeles, Marina Del Rey, Menifee, Monterey, Murrieta, Oakland, Oakley, Oceanside, Ontario, Pasadena , Poway, Rancho Cucamonga, Redlands, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, San Jose, San Marcos, San Mateo, Santa Ana, Santa Clarita, Santa Monica, Temecula, Torrance, Ventura, Vista, and all other CA Cities and areas.
We now serve the entire state of Virginia including Virginia Beach, Norfolk, Chesapeake, Richmond, Newport News, Alexandria, Hampton, Roanoke, Portsmouth, Suffolk, and all other Virginia Cities, Towns and Counties.
We also serve the entire state of Washington including: Auburn, Bellevue, Bellingham, Bonney Lake, Bothell, Bremerton, Des Moines, Edmonds, Everett, Federal Way, Ferndale, Issaquah, Kent, Kirkland, Lacey, Lake Stevens, Lynnwood, Mercer Island, Mill Creek, Monroe, Montlake Terrace, Mt Vernon, Mukilteo, Olympia, Puyallup, Redmond, Renton, Seatac, Seattle, Silver Lake, Snohomish, Spokane, Sumner, Tacoma, Tumwater, Vancouver, Wenatchee, Woodinville, Yakima and all other WA cities and towns.
All information is subject to change without notice.
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VanDyk Mortgage is a private company specializing in FHA & VA financing, VanDyk Mortgage Corp is not a government agency. Corp 2449 Camelot Ct SE, Grand Rapids, MI 49546
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Branch address 310 Via Vera Cruz, ste 210 & 211, San Marcos, CA 92078 760-752-4480 direct
NMLS ID: 3035 - VanDyk Mortgage Corp NMLS ID 220268
Brian Skaar - Loan Originator / Branch Manager
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