Definition of "Conforming loans"

Bonny Rich-Carper real estate agent
Bonny Rich-Carper, Real Estate Agent Century 21 Jim White &. Associates

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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