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This question is best answered by understanding what a conforming loan is. Government sponsored entities (GSEs) such as Freddie Mac, Fannie Mae, and Ginnie Mae purchase mortgages from lenders. In order for a mortgage to be purchased, it must meet certain standards (called "conforming"). For a conforming loan, mortgage applicant must meet the following requirements: * PTI (paymento-to-income) ratio below a certain threshold * LTV (loan-to-value) ratio below a certain threshold * loan amount below a certain threshold A nonconforming loan is one which does not meet these requirements. For example, a common nonconforming loan is a "jumbo mortgage", which has a loan amount that exreeds the required threshold.

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โˆ™ 2006-04-27 12:23:21
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Q: What is a nonconforming loan?
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Related questions

How does a nonconforming loan work?

A nonconforming loan is a loan option for someone who doesn't qualify for a traditional loan due to bad credit. Nonconforming loans are typically given by private agencies and need other lending options.

What is the opposite of conforming?

The opposite would be nonconforming

What Golf Club Drivers are illegal?

The USGA and the R&A have a full list of nonconforming Drivers on there wev site

What is a right to cure notice?

The UCC (Uniform Commercail Code) gives the sellor or lessor who delivers the nonconforming goods an opportuinty to cure the nonconformoity. The term Cure generally means an opportunity to repair or replace defective or nonconforming goods. A cure may be attempted if 1. The time for performace has not expired and 2. The sellor/lessor notifies the buyer or lessee of his intention to male a conforming delivery within the contract time. Nonconforming goods: Goods that do not meet the exact specification of what the buyer expected.

Define P charts in operational management?

In industrial statistics, the p-chart is a type of control chart that monitors the proportion of nonconforming units in a sample. The appropriate data for p-charts are attribute data (conform or non-conform, yes or no, etc.). The subgroup size should ideally be equal, although unequal sample sizes can be accommodated. p-chart # The "p" comes from use of the proportion of nonconforming items # Need a good definition of nonconforming items - usually a categorical definition # Can be of equal or unequal subgroups # Normally need large subgroups - can even be up to total for the period

What curve shows the amount inspected by both the consumer and the producer for different percent nonconforming value?

Average total inspection curve ( ATI curve)

What is the different between a parent loan and a student loan?

Parent Loan: A parent is getting the loan Student loan: A student is getting the loan

What is a title loan?

'Title Loan' is a loan you will be getting of having a car loan on your on name.

What is a simple loan?

what is simple loan? what is simple loan?

What Is The Part Of Speech For Loan?

A loan is a noun ex: The loan from the bank was helpful. To loan is a verb: I had to loan my phone charger to a friend.

What is uncollateralized loan?

a loan not backed by a co-signer who agrees to cover the amount of the loan a person loan without assets to cover the loan amount a home equity loan a loan tkaen on a life insurance policy

Can you change your loan from a hard money loan back to a convetional loan?

refinance the hard money loan back to a conventional bank loan

When a auto loan personal loan and credit card loan are combined what is it called?

That is called a ACP Loan

Does a spouse need to sign a loan modification if separated in GA?

If responsible for the loan- yes.If responsible for the loan- yes.If responsible for the loan- yes.If responsible for the loan- yes.

How long after the borrowers death is the co signer liable on a loan?

Until the loan is paid.Until the loan is paid.Until the loan is paid.Until the loan is paid.

How does the auto loan calculator work?

An auto loan calculator factors in the interest rate of the loan, the loan amount, and length of time for the auto loan. This information givens you the monthly payment as well as loan balance for that particular loan plus the total you will pay over the life of that loan.

What is loan default?

If you don't pay a loan when due, you default on the loan.

What is a fully disbursed loan?

Disbursed loan mean unsettled loan...........

What is easier to pay car loan or bank loan?

bank loan

Is a home improvement loan a recourse loan?

no. why would it be a recourse loan

What is the population of E-Loan?

The population of E-Loan is 300.

What is a loan that is linked to an asset called?

An unsecured loan An unsecured loan

What is loan boarding?

when a loan is been transfered fron bank to another. . .the bank which the loan is transfered to board the loan. .

How can get housing loan in HDMF if they have a calamity loan in HDMF?

what is the requirements for housing loan in HDMF if they have calamity loan in HDMF

Where can I get a goverment loan?

You can get a government loan by applying a loan through a bank. To get a loan, you must have a good credit score and you must have a logical reason to use this loan.