The current conforming loan limit, set by the federal agencies Freddie Mac and Fannie Mae, is $417,000. Any loan amount over this limit is considered non-conforming, also referred to as a Jumbo loan.

Besides the loan limit, the other key difference between the two is the pricing. Due to the higher risk associated with a non-conforming loan, the rate is usually higher. How much higher mostly depends on the type of loan, the market and the level of demand for jumbo loans on the secondary market. The benefits of a non-conforming loan are that it enables borrowers to purchase a home in more expensive areas.

If you are looking to purchase a home in the price range near the conforming loan limit, I would recommend structuring your transaction so that your loan amount falls just under $417,000. This could include a down payment, offering a slightly lower price, or possibly breaking your loan into a 1st and 2nd mortgage. If you compare the interest rates, you’ll be glad you did.

The No Money Down Doctor Program offers 100% financing for both conforming and non-conforming loan amounts up to $1,000,000. This is especially unique since 100% financing has become even more increasingly difficult to find as lenders continue to react to the current mortgage industry climate. Many loan programs that used to be competitive with the doctor loan are changing their guidelines to require a down payment or they are increasing their pricing or both.

If you’re ready to purchase a home, give me a call today at 866.663.5461 or email me at jeffrey.r.irving@bankofamerica.com to become pre-approved.

Visit My Doctor Loan Blog for additional articles and more doctor loan information at: http://doctormortgageloan.blogspot.com/