down payment can be as low as 3.5% of the purchase price. Available on 1–4-unit residential properties. There is an upfront and a monthly charge for Mortgage Insurance because of the low down-payment.
Jumbo Loan Programs
We discussed jumbo mortgages in a previous chapter, but it’s worth reviewing them in more detail. A “conforming loan” is one that is under a certain price threshold as determined by the Federal Housing Finance Agency (FHFA), and a “jumbo loan” (non-conforming) is a mortgage that is over that threshold. The current (2025) conforming loan limits in most of the 48 contiguous states and D.C. are $802,650 for a single-family home. The limit is higher for 2-4 family units. High-cost areas include parts or all of Alaska, California, Connecticut, Hawaii and NY where there is a conforming limit of $1,203,975 for a single- family residence (SFR). Your loan officer will tell you the exact limits in the area in which you are planning to make your purchase. Non-conforming (Jumbo) loans have different guidelines than smaller ones. In addition to requiring a higher income level they often set a lower Debt to Income ratio, higher FICO credit score, and larger amounts of assets (i.e., checking, savings, stocks, retirement accounts etc.) in reserve in your accounts after the closing
A Non-QM Mortgage
A Non-QM (Non-Qualified Mortgage) is a type of loan that does not meet the criteria or "qualifications" set forth by the Consumer Financial Protection Bureau (CFPB) for conventional mortgages, often referred to as Qualified Mortgages (QM). The primary difference between non-QM loans and conventional loans lies in how the borrower is underwritten. In all cases the
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