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Conforming Loan

What is a conforming loan?

As part of their structure, Fannie Mae and Freddie Mac are legally able to purchase various types of mortgage loans under a certain value, known as the “conforming loan limit.”

The national conforming loan limit is set by the Federal Housing Finance Agency and is subject to change. In fact, over the past 3 years, the Federal Housing Finance Agency has increased their loan limits.

Currently (2019), the conforming loan limit is $484,350 for single-family homes in the continental United States. In more expensive regions of the country, like Alaska and Hawaii, conforming loan limits are $726,525 or higher.

We strongly encourage you to work with an experienced mortgage banker if you’re considering a conforming loan to know what the conforming loan limit is where you are looking to purchase a home.

 

Key Things to Remember

  • Conforming loan limits are based on the county and state where the home is located.
  • Conforming loans follow guidelines pertaining to your debt-to-income ratio, credit scores, income and minimum down payment.
  • Most conforming loans require between a 5 percent and 20 percent down payment.
  • Conforming loans often offer lower interest rates because the government backs them.

To learn more about qualifying for a conforming loan, call 877.788.3520 to speak with one of our expert mortgage bankers or if you're ready, get started today.

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The above information is for educational purposes only.