According to the SAFE Act, which type of loan is classified as non-conforming?

The classification of a non-conforming loan under the SAFE Act pertains to loans that do not meet the specific guidelines established by government-sponsored entities (GSEs) such as Fannie Mae and Freddie Mac. A loan is considered non-conforming if it falls outside of these purchasing criteria, which include limits on the loan amount, borrower creditworthiness, and documentation standards.

The answer indicating that any loan other than a 30-year fixed loan is non-conforming is correct because the 30-year fixed loan is a traditional loan type that often meets the market standards for conforming loans. Non-conforming loans may include a variety of loan structures, including those that exceed loan limits, have higher risk factors, or do not align with standard underwriting guidelines.

It's important to note that while adjustable-rate mortgages (ARMs) and FHA loans can be conforming or non-conforming depending on their specific features and how they meet GSE criteria, the broad statement that any loan other than a 30-year fixed loan qualifies as non-conforming helps highlight the distinction between conforming and non-conforming categories without getting into the specifics of each loan type.