Non-conforming loans, also called jumbo loans, are loans with higher dollar amounts which may not be sold to Fannie Mae or Freddie Mac. A VA Mortgage that is above the conforming loan limit of $417,000 for the year 2010 is considered to be a jumbo loan.
Non-conforming VA Mortgage loans often come with a higher rate because they are considered a higher risk. If you work with a major Fannie Mae or Freddie Mac lender that sells a majority of their loans to Wall Street you will likely receive a higher rate on your VA Home Loan.
However, if you work with a smaller VA Home Mortgage lender you will likely receive a lower rate since these lenders hold loans on their own books. Also, these lenders typically have more flexible terms since they are not selling their loans to Wall Street.
At HurstLending.com, we work with several local VA Jumbo Home Loan lenders and welcome the opportunity to help you with your VA Home Loan.