Fixed Rate &
Adjustable Rate Mortgages
A residential non-conforming mortgage does not follow the guidelines established by the Federal National Mortgage Association, also known as Fannie Mae. In essence, a non-conforming mortgage is one that exceeds the conforming mortgage limits that Fannie Mae institutes for residential mortgages. The current conforming mortgage limit for a single family home is $726,200 and for high-cost areas it is $1,089,300. Non-conforming mortgage are often referred to as "Jumbo loans", because mortgage amounts greatly exceed the limits set by Fannie Mae. Typically, jumbo loans carry higher interest rates than conforming loans and have more stringent underwriting guidelines. Some features of jumbo loans are:
Minimum credit score requirement of 680 to 760 depending on the loan-to-value and the amount of the loan
Fixed Rate and Adjustable Rate Mortgage (ARM) programs available
Ability to finance up to 85% of the purchase price of the property or appraised value, whichever is less
Property types: Single family, condominiums and townhomes
Available for purchase, rate/term refinance and cash-out refinance
Borrowers must meet minimum credit score, reserves requirements and underwriting ratios
North Shore Trust and Savings offers a Mini-Jumbo program for loan amounts of $726,201 to $826,200. Borrowers get a better interest rate because we price it as a conforming loan and not a jumbo. Mini-Jumbo guidelines are:
Minimum credit score requirement of 700
Fixed Rate and Adjustable Rate Mortgage (ARM) programs available
Ability to finance up to 80% of the purchase price of the property or appraised value, whichever is less
Property types: Single family, condominiums and townhomes
Available for purchase, rate/term refinance and cash-out refinance
Maximum debt-to-income ratio of 45%
Borrowers must meet minimum reserve requirements
For more information on our Mini-Jumbo and Jumbo Loan Programs, contact one of our experienced Loan Officers