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What is a conforming loan?

Second Mortgage Banker discusses conforming and conventional loan restrictions. Conforming loans or conventional mortgages may be. Conforming loan parameters are set by the criteria that Fannie Mae and Freddie Mac maintain. These two government inspired companies require compliance with underwriting guidelines for purchasing of purchase and refinance loans from mortgage lenders and bankers.

Freddie Mac & Fannie Mae publish conforming loan limitations annually. At this time conforming home loans are limited to $417,000 for most areas across the country.



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