Conforming/Non-Conforming
Conforming loans are loans that meet regulations of a particular mortgage institution. However, if the loan does not meet these requirements, then it is non-conforming. For example, if the loan amount that you need to borrow is more than the FHA allows, then it is a non-conforming loan, and will not be funded.
Escalating/Non-Escalating
These terms refer to the actual mortgage loan agreement. Home mortgage loan rates are affected. Escalating can refer to the home mortgage loan interest rate, which may go up or down for a new home loan purchaser. This is deemed as an escalating clause because the home mortgage loan rates go up. There is not a federal law regarding these clauses, therefore lenders and actual state law govern them. If your purchase a home with a loan that contains a non-escalating clause, then the home mortgage loan rate will not increase. It is probably best if the home mortgage loan rates do not increase, especially if you are a first-time buyer. It might be best to cap your home mortgage loan interest rate by obtaining a non-escalating clause. No more home mortgage loan rate worries, home mortgage loan rate increases, or home mortgage loan rate headaches!
FHA’s Creation
About the FHA
Mortgage Types
ARMs
Buy Downs
Conforming/Non-Conforming
FMHA Loans
FHA Loans
FHA Loans, Con’t
Graduated Payment
Rent to Buy
Seconds
Shared Equity
VA Loans
Prepayment Penalty
Points
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Reference text: Mortgage Loans: What’s Right for You?, by James E. Bridges with Deborah J. Bridges. Copyright 1989, Published by Betterway Publications, Inc., Crozet, VA
