Conforming Loan

Conforming loan limits are currently $417,000

• Meet Fannie Mae and Freddie Mac guidelines
• Government insured
• Meet lenders conforming guidelines
• A paper loans
• FHA loans

A conforming mortgage loan is any mortgage loan that is $417,000 and less. Conforming loans meet the Fannie Mae and Freddie Mac guidelines and are backed by the federal government. They will generally allow the borrower to achieve the lowest rate and lowest payment when compared to non-conforming loan amounts. This is due to the fact that conforming loans are backed by the federal government. A conforming loan generally allows the borrower to put down a smaller down payment on their home or refinance their home to a higher loan-to-value than other loans.

The government has now introduced a conforming jumbo loan. The maximum loan amount for this program varies by county and our lenders can tell you what the maximum is for your county. This has allowed many borrowers to take advantage of the low rates that are available even if they owe up to $625,000 on their mortgage. The conforming jumbo loan amounts were introduced as a temporary program but they may become permanent at some point in the future. Our lenders stay on top of all program changes and they will provide you with the most up to date information on this program.

Conforming loan amounts can change each year but will not necessarily change each year. Alaska and Hawaii generally have higher loan limits. 2, 3 and 4 unit properties will also qualify for higher limits than single family residence properties. There are many different guidelines in place that borrowers must meet in order to qualify for these types of loans. With that said these are the most abundant types of mortgages issued in the United States. Most people that currently have a mortgage have a conforming loan but it is generally an industry term and many home owners may not even realize that they currently have one.