What is a Conforming Loan?
A conforming loan is most commonly identified by its size, which generally is limited to $453,100 for single-family homes in the continental United States.
Fannie Mae and Freddie Mac are both Government Sponsored Enterprises, which means they’re backed by the U.S. government.
Key Aspects to Remember:
- Conforming loans follow guidelines pertaining to your debt-to-income ratio, credit scores, income and minimum down payment.
- Most conforming loans require between a 5 percent and 20 percent down payment.
- Conforming loans often offer lower interest rates because the government, insuring that the lender will be paid back, backs them.
Learn More about the Loan Application Process
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