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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