Non-conforming loans are any loan that is granted above the limit. Jumbo loans are one such non-conforming loans.
Jumbo loans are mortgages granted over the FHFA limit—which is a risk for lenders because these homes are not guaranteed by Freddie Mac or Fannie Mae. As a result, the terms and requirements can be more stringent than a traditional FHA or conventional mortgage.
Jumbo loans are specifically designed to provide financing options for luxury properties, a common sight throughout Florida. Typically, these loans are amortized over 30 years and have a fixed interest rate but can have an ARM. They can also be used for the purchase of a primary residence, second home, or an investment property.