Conforming

A conforming loan is a mortgage that meets the purchasing guidelines set by Fannie Mae and Freddie Mac, government-sponsored enterprises (GSEs) in the US housing market. These loans adhere to specific criteria regarding loan amount, borrower qualifications, and property type. Conforming loans are a widely used mortgage option with attractive features for qualified borrowers. Here’s a quick breakdown:

Eligibility:

Meet Fannie Mae/Freddie Mac standards.
Minimum credit score (often 620+).
Healthy debt-to-income ratio (ideally below 45%).
Down payment (at least 3%, may vary).
Loan amount under conforming loan limits (set by FHFA, $806,500 nationally in 2025, higher in some areas).

Benefits:

Lower Interest Rates: Due to reduced risk for lenders, conforming loans often offer competitive interest rates.
Wide Availability: Most lenders provide conforming loans, making them easy to find.

Considerations:

Loan Limits: Check your county limits.
Not Government-Insured: Unlike FHA, VA, and USDA loans, conforming loans lack government insurance.