What is Conforming Loan Limit?
A conforming loan limit is the maximum loan amount that can be sold to certain government-sponsored enterprises, set annually based on home prices.
The conforming loan limit is the ceiling on loan size for mortgages eligible for purchase by government-sponsored enterprises. It is updated each year to reflect changes in home prices. Borrowers meet this limit when their loan amount exceeds the threshold, which may require a jumbo loan or a high-balance loan in high-cost areas. Watch for county-specific limits, as they can be higher in expensive markets. Exceeding the limit can mean different underwriting, pricing, and down payment requirements.
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