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Mortgage Glossary

Non-Conforming Loan

Mike Starr·Reviewed August 2026

A non-conforming loan is a mortgage that does not meet Fannie Mae or Freddie Mac guidelines, either because the loan amount exceeds conforming limits (making it a jumbo loan) or because it does not meet other underwriting standards. Non-conforming loans typically carry higher interest rates because lenders cannot sell them to the GSEs to recover their capital.