Definition of "Conforming loans"

Denise  Wilson real estate agent
Denise Wilson, Real Estate Agent Fathom Realty Llc

Loans that adhere to national guidelines by Fannie Mae, who buy the loans on the secondary market. Fannie Mae purchases mortgages to a certain dollar limit. Conforming loans typically come with a lower interest rate than larger mortgage, or jumbo loans, which are purchased on the secondary mortgage market by another federally chartered company, the Federal Home Loan Mortgage Corporation.

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