What Is A Conforming Mortgage "Loan Limit"?

A "conforming mortgage" is so named because its loan traits -- quite literally -- "conform" to the loan rules set forth by Fannie Mae or Freddie Mac.
Fannie's and Freddie's mortgage guidelines are dense, covering thousands of home loan traits, but there is one over-reaching rule -- neither Fannie Mae nor Freddie Mac will securitize a mortgage that's considered "too big" for its books.

Defining "too big" is an annual decision-making process based on the economy and home price data. The debate results in a "loan size limit"; the maximum amount of mortgage that Fannie and Freddie will allow, per their respective home loan guidelines.
Loan sizes up to these maximum amounts can be

conforming mortgages. Loan sizes beyond the


conforming loan limit are often considered "jumbo".

Free Consultation Call Today  1(916) 910-8737