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

    … that the buyer’s asking price is actually how much the home is worth. The value of the property, as determined by the appraisal, can impact how much money the lender is willing to let a homebuyer borrow. This expert opinion is both certified and state-licensed by the professional conducting the appraisal. What Is Homeowners Insurance? Homebuyers…

    Matty Byloos/ RGR Marketing- 6 readers -
Get the top posts daily into your mailbox!