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conforming loan

   Also found in: Wikipedia 0.02 sec.
Conforming Loan
A mortgage loan that Freddie Mac and Fannie Mae are allowed to buy. These organizations buy mortgages from the original lenders so as to reduce risk to the lenders and, thereby, maintain a smooth flow of mortgage credit. Conforming loans must meet certain guidelines. Included among these guidelines are requirements, such as a maximum debt-to-income ratio for the property owner, but the most important rule states that neither organization may buy a loan worth more than a certain amount. This amount changes every year according to changes in the median home price. See also: Jumbo loan, Mortgage-backed security.
conforming loan

A loan that meets the underwriting requirements necessary for sale to Fannie Mae (FNMA—Federal National Mortgage Association) or Freddie Mac (FHLMC—Federal Home Loan Mortgage Corporation). There is nothing derogatory about a nonconforming loan; it may be too large,it may be for a property flipped within the prior 90 days,or any number of other disqualifying reasons besides creditworthiness or value of collateral.
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It bumps the conforming loan limit back up to $729,750 from $650,000, thereby saving borrowers several thousand dollars per year in interest payments.
Mortgage bills: One gives, one takes by Pincus, Adam / The Real Deal
The housing market will soon get a lift from very favorable buying conditions -- not only from improved affordability, but also from the stimulus of an 8,000-dollar first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates," he said.
US existing home sales fall 5.3 percent in January by AFP / AFP American Edition
The housing market will soon get a lift from very favorable buying conditions -- not only from improved affordability, but also from the stimulus of an 8,000-dollar first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates," he said.
US existing home sales fall 5.3% in January by AFP / AFP Global Edition
 
 
 
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