I have a FICO Score of 720+
Excellent Income
Only debt: Primary residence

I applied for a loan to purchase an investment property with Countrywide and today I was told by the Manager that I was approved for a Non conforming loan.

I thought that non conforming loans are for people with bad credit, foreclosures, bankruptcy, etc. Also, these types of loans usually have a higher interest rate.

I would appreciate if someone can clarify for me why am I getting this type of loan vs. a conforming loan.

non-conforming doesn't mean you have bad credit.It means your loan and circumstances do not conform to regular loan criteria.

Even with good credit an investor loan will have higher interest than a homebuyer because of the risk involved.The lender scoring model knows that if you don't live there when hard times come you will let the house go so they build that risk into the higher rate.

Even though it is a non-conforming loan, I was able to get very good rates compared to other leders out there. Thank you for the explanation.