What is a Conforming Loan?

A conforming loan is most commonly identified by its size, which generally is limited to $484,350 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 they are backed by government enterprises.

 

 

Learn More about the Loan Application Process

An ETFCU home mortgage professional will answer any question you may have, and walk you through the loan application process.

Get Pre-Approved!