Conforming loan

In the United States, a conforming loan is a mortgage loan that conforms to GSE (Fannie Mae and Freddie Mac) guidelines.[1] The most well-known guideline is the size of the loan, which, for 2019, was generally limited to $484,350 for single family homes in the continental US.[2] Other guidelines include borrower's loan-to-value ratio (i.e. the size of down payment), debt-to-income ratio, credit score and history, documentation requirements, etc.[3]

In general, any loan that does not meet guidelines is a non-conforming loan. A loan that does not meet guidelines specifically because the loan amount exceeds the guideline limits is known as a jumbo loan.[1]

  1. ^ a b Wiedemer, John (2001). Real Estate Finance, 8th Edition. Prentice Hall. pp. 44, 78–86.
  2. ^ "FHFA Announces Maximum Conforming Loan Limits for 2018". Federal Housing Finance Agency. 28 November 2017. Retrieved 25 May 2018.
  3. ^ "Mortgage Tools - Conforming Loan Limits". Zillow. Retrieved 21 September 2013.