Conforming Loan

What Is A Conforming Loan?

Conforming loans are mortgages that meet Fannie Mae and Freddie Mac guidelines. Conforming lenders underwrite and fund the loans and then sell them to investors like Fannie Mae and Freddie Mac. Once securitized, the loans are sold to investors on the open markets. Because of their liquidity and the government regulations, conforming loans often have lower interest rates than non-conforming loans.

What Are Conforming Loan Limits?

Fannie Mae and Freddie Mac have conforming loan limits. The baseline conforming loan limit for 2023 is $715,000 . This means you can’t borrow more than the limit for that year unless you’re buying in a high-cost area with higher limits. Any borrower that needs more than the conforming loan limits will need a nonconforming loan, such as a jumbo loan.


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San Jose, CA

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