Conforming Mortgage
A conventional loan whose amount falls within the limit eligible to be purchased by Fannie Mae or Freddie Mac.
Conforming loans meet the size and underwriting criteria set by the two government-sponsored enterprises that buy mortgages from lenders. The Federal Housing Finance Agency publishes annual loan-limit ceilings, higher in high-cost counties, and any conventional loan at or below that ceiling is conforming.
Because Fannie and Freddie buy these loans in volume, they trade as commodities in the secondary market, which keeps rates competitive and the process standardized. Most conventional rate sheets quote conforming pricing as their reference point.
A loan above the conforming limit is a jumbo loan, governed by different underwriting standards and held on lender balance sheets or sold to private investors rather than the agencies.
Related terms
Other terms you'll see alongside Conforming Mortgage
Mortgages not insured or guaranteed by a government agency, typically sold to Fannie Mae or Freddie Mac.
A mortgage that exceeds the conforming loan limit and therefore cannot be sold to Fannie Mae or Freddie Mac.
A conforming loan in a designated high-cost area that exceeds the standard conforming limit but stays within a higher local ceiling.
The Federal National Mortgage Association, a government-sponsored enterprise that buys conventional loans from lenders.
Want to apply Conforming Mortgage to your real numbers?
Get a personalized estimate in under a minute, or talk to a licensed HCMG loan officer about how this affects your specific situation.