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.