U.S. Mortgage Index

Non-conforming loan

Definition

A non-conforming loan is a mortgage that does not meet Fannie Mae or Freddie Mac purchase standards. Size is one common reason; other eligibility rules can also make a loan non-conforming.

In plain English

Conforming means the loan fits those enterprises’ published purchase rules. Non-conforming means it does not. A jumbo loan is the size-based form people mention most. Other features can also fall outside the enterprises’ rules. This page is the broader mismatch, not only size.

Technical definition

CFPB’s jumbo heading supplies the official size-limit idea. Non-conforming is the complementary consumer category: a loan the enterprises will not buy under their standards.

Why it matters

Jumbo and non-conforming are related but not always identical. A loan can fail conforming rules for reasons other than size.

Sources reviewed