Conforming Loan

In the United States, a conforming loan is a mortgage loan that conforms to GSE (Fannie Mae and Freddie Mac) guidelines. The most well-known guidelines is the size of the loan, which as of 2013 was generally limited to $417,000 for single family homes in the continental US. Other guidelines include borrower's loan-to-value ratio (i.e. the size of down payment), debt-to-income ratio, credit score and history, documentation requirements, etc.In general, any loan which does not meet guidelines is a non-conforming loan. A loan which does not meet guidelines specifically because the loan amount exceeds the guideline limits is known as a jumbo loan.
Posts about Conforming Loan
  • 10 Common Mortgage Related Terms and Definitions You Need to Know

    … at least 20% equity in the home. Jumbo Mortgage Vs. an Interest-Only Mortgage As mentioned earlier, there are several variations to each category of mortgage, whether you’re dealing with an ARM or a fixed-rate mortgage. A Jumbo Mortgage is any home loan whose amount exceeds conforming loan limits (these are set by the government-sponsored agencies…

    Matty Byloos/ RGR Marketing- 4 readers -
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