Loan TypesHomebuying Glossary
Conforming Loan
A conventional mortgage that meets size and underwriting rules set by Fannie Mae and Freddie Mac.
In plain English
Conforming loans meet the loan-amount limits and guidelines set annually by Fannie Mae and Freddie Mac, which allows lenders to sell them on the secondary market, generally resulting in more competitive rates.
Why it matters
Most first-time buyers end up with a conforming loan; understanding the term mainly helps when comparing rates against a jumbo loan for higher-priced homes.
Where you'll run into it
Guides and tools on TheBuyingPath that cover conforming loan in context.
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