Conforming Loan

A conforming loan is a type of mortgage that meets the guidelines set by government-sponsored entities (GSEs) such as Fannie Mae and Freddie Mac. These guidelines include limits on the loan amount and borrower creditworthiness. Conforming loans typically offer lower interest rates and more favorable terms compared to non-conforming loans. 

Adhering to conforming loan standards is essential for ensuring eligibility for secondary market funding and optimizing loan terms for both lenders and borrowers.