What Is Conforming Loan Limit?
The conforming loan limit is the maximum mortgage amount Fannie Mae and Freddie Mac will purchase, set annually and adjusted higher in certain high-cost areas — loans above it are jumbo loans.
Jumbo Loan vs. Conforming Loan
At or below the FHFA's annual loan limit — eligible for purchase by Fannie Mae or Freddie Mac.
Above the conforming loan limit — can't be sold to Fannie Mae or Freddie Mac, typically requiring stronger credit and a larger down payment.
Related Terms
More Financing Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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