This is considered a nonconforming loan because it exceeds the loan limit set by Fannie Mae and Freddie Mac, the two publicly chartered corporations that buy mortgage loans from lenders, thereby ensuring that mortgage money is available at all times in all locations around the country. The 2003 single-family loan limit is $322,700. The maximum loan amount is 50 percent higher in Alaska, Hawaii and the U.S. Virgin Islands. If you need to borrow more than that, you will need a jumbo mortgage, which generally has a higher interest rate than "conforming" loans.

Pro: Opportunity to purchase larger, more expensive home.

Con: Pay a higher interest rate in exchange for the lender's higher risk.

The loan limit amounts are constantly changing due to the higher sales prices in many regions of the country. Check with the mortgage broker for the new limits.

• Conforming Loans
• Non-Conforming Loans
• FHA/VA Loans
• Subprime Loans
• Jumbo Loans
• Home Construction Loans
• Home Equity Loans
• 100% Financing Loans
• Refinancing Loans
• Also check out Credit Score