Conforming Loans

Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, from October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.

Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans.

 

Conforming Loan Limits:

Number of Units

California Maximum original principal balance

Alaska, Guam, Hawaii, and U.S. Virgin Islands only

1

$417,000

$625,500

2

$533,850

$800,775

3

$645,300

$967,950

4

$801,950

$1,202,925

 

NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands are approximately 50%. higher then California due to supply and demand as well as the general marketplace for homes in those areas.

You can apply online for a conventional loan program or contact us directly if you have further questions at (909) 456-1462