What is Conforming Loan?
A mortgage meeting Fannie Mae/Freddie Mac guidelines, including current loan limits. Typically offers lower rates than non-conforming loans.
A conforming loan meets the guidelines set by Fannie Mae and Freddie Mac, including loan limits that change over time and can be higher in expensive markets. Because these loans can be sold to government-sponsored enterprises, they typically offer lower interest rates than non-conforming loans. Conforming loans have standardized requirements for credit, DTI, and documentation.